KRM Ayurveda IPO Makes Bumper Debut with 28% Premium
Shares of KRM Ayurveda made a stellar debut on the Indian stock market on Thursday, January 29, listing at a significant premium that surpassed market expectations. The KRM Ayurveda share price opened at ₹172.10 on the NSE SME platform, marking a robust 28% premium over the IPO price of ₹135 per share. This impressive listing gain provided immediate returns to IPO allottees, outperforming the anticipated figures based on pre-listing indicators.
IPO Subscription and Financial Details
The SME IPO, which was open for subscription from January 21 to 23, witnessed overwhelming investor interest. The allotment was finalized on Tuesday, January 27, with the company successfully raising ₹77.49 crore through a book-built issue. This offering consisted entirely of a fresh issue of 57.40 lakh equity shares, priced within the range of ₹128 to ₹135 per share.
Subscription figures revealed strong demand across all investor categories:
- The overall IPO was subscribed 74.27 times.
- Retail Individual Investors segment saw a subscription of 54.21 times.
- Qualified Institutional Buyers subscribed 63.31 times.
- Non-Institutional Investors led with an impressive 135.37 times subscription.
Utilization of Funds and Company Background
The funds raised through this IPO are earmarked for several strategic purposes, including expanding telemedicine infrastructure, upgrading technology systems, repaying existing borrowings, meeting working capital requirements, and other general corporate purposes. NEXGEN Financial Solutions Pvt. Ltd. acted as the book-running lead manager for the issue, while Skyline Financial Services Pvt. Ltd. served as the registrar.
KRM Ayurveda operates a network of Ayurvedic hospitals and clinics and is actively engaged in the manufacture and sale of Ayurvedic and herbal products. As of December 31, 2025, the company operated six hospitals and five clinics across India, employing 443 people. In addition to its physical presence, KRM Ayurveda offers telemedicine services and sells products both domestically and overseas.
Financial Performance and Market Context
On the financial front, KRM Ayurveda has demonstrated solid performance. The company posted a profit after tax of ₹12.1 crore in FY25 and ₹8.14 crore for the six months ended September 2025. Key financial metrics include an EBITDA margin of 26.54% and a return on net worth of 21.84% as of September 2025.
The listing outcome exceeded market expectations, as the pre-listing grey market premium (GMP) of ₹22.5 had indicated an estimated listing price of around ₹135. The actual opening at ₹172.10 reflects stronger investor confidence and market reception than initially projected.
Disclaimer: This information is provided for educational purposes only. Investors are advised to consult with a qualified investment advisor before making any financial decisions.
