Company Overview
Aakaar Medical Technologies Limited, established in 2013 in Mumbai, is a specialized distributor in the medical aesthetics industry. It operates on a B2B (Business-to-Business) model, supplying aesthetic and cosmetic goods to dermatologists, plastic surgeons, and cosmetologists.
The company has a significant footprint, serving 15 Indian states with 5,205 professional customers and 90 trained sales and service engineers as of FY24.
Portfolio Mix
- Proprietary Brands: In-house or contract-manufactured solutions like DermaSet Professional Skincare and hair growth serums, which typically offer higher margins. Also Read: How Hrishikesh Dhane Built a ₹1 Cr/Year Aloe Vera Venture on 3 Acres in Maharashtra
- Imported Goods: High-end equipment and consumables from countries like South Korea, Spain, and Italy. This includes lasers, injectables (like Botox and fillers), and body contouring devices.
Strategic Focus
Aakaar's strategy leverages the rising demand for non-invasive aesthetic procedures in India, driven by urbanization and increasing disposable incomes. Its B2B model minimizes direct consumer marketing costs, focusing instead on strong relationships with medical professionals. This focus on a professional client base is a key element of its growth. For more on B2B approaches, check out Also Read: 25 B2B SaaS Marketing Strategies for 2025.
Geographical Revenue Concentration
Product Sourcing Mix
IPO Details
The Initial Public Offering is a 100% fresh issue of equity shares with no Offer-for-Sale (OFS) component, indicating that all proceeds will go to the company for its growth initiatives.
| Attribute | Details |
|---|---|
| Issue Type | 100% Fresh Issue (No OFS) |
| Issue Size | Approx. ₹27 Crore (at upper price band) |
| Price Band | ₹68 - ₹72 per share |
| Lot Size | 1,600 Shares |
| Investment (Retail) | ₹1,08,800 - ₹1,15,200 per lot |
| IPO Open Date | June 20, 2025 |
| IPO Close Date | June 24, 2025 |
| Listing On | NSE SME on June 27, 2025 |
IPO Reservation Structure
Use of IPO Proceeds
Shareholding Pattern Change
Financial Performance & Analysis
Aakaar has demonstrated strong revenue growth, but the phenomenal spike in profit in the pre-IPO year (FY25) raises questions about its sustainability.
Revenue from Operations (in ₹ Crores)
Profit After Tax (PAT) (in ₹ Crores)
PAT Margin Trend (%)
Key Financial Ratios (FY25 Est.)
Financial Strengths vs. Concerns
- Strengths: Consistent revenue growth (36% CAGR), impressive profitability jump in FY25, and a likely low-debt balance sheet.
- Concerns: The 110% PAT growth in FY25 seems unusually high and may not be repeatable. The company is also heavily dependent on imports and has significant revenue concentration in just two states.
Grey Market Premium (GMP) & Subscription Status
Grey Market Premium (GMP)
As of June 22, 2025, the GMP is ₹0 (Nil). This indicates a lack of speculative interest and suggests the possibility of a flat listing. A zero GMP is often a result of cautious investor sentiment, market volatility, or concerns about the company's fundamentals.
Subscription Status (Day 1 - June 20, 2025)
The initial response to the IPO was modest, reflecting the cautious sentiment indicated by the flat GMP.
Day 1 Subscription Status (Overall: 0.37x)
The subscription numbers, especially from retail and institutional investors, will be critical to watch on the final days (June 23-24). A significant pickup is needed to build positive momentum for listing.
Industry Dynamics
Aakaar operates within the rapidly growing medical aesthetics market, both globally and in India.
Also Read :India’s Unified Carbon Credit Market ExplainedGlobal Medical Aesthetics Market Growth
Indian Medical Aesthetics Market Growth
Key Drivers in India
- Rising Disposable Incomes: Increased spending power, particularly in urban areas.
- Cultural Shift: Greater social acceptance of cosmetic procedures, fueled by social media.
- Demographic Advantage: A large, young population (18-35 years) embracing aesthetic treatments.
Challenges
The industry faces regulatory hurdles from bodies like CDSCO, competition from unregulated providers, and high costs that limit affordability in smaller cities.
Risks Analysis
Business Risks
- Import Dependency: 60-70% of products are imported, creating exposure to forex risk and supply chain disruptions.
- Geographical Concentration: High reliance on Maharashtra and Karnataka.
- Manufacturing Reliance: Dependence on third-party contract manufacturers poses quality and supply risks.
Financial & IPO Risks
- Profit Sustainability: The 110% PAT growth in FY25 is a major red flag for sustainability.
- Low Subscription & Flat GMP: Indicates weak initial demand and a high chance of a flat or discounted listing.
- SME Volatility: SME IPOs are inherently more volatile and less liquid than mainboard IPOs.
Business Risks
- Import Dependency: 60-70% of products are imported, creating exposure to forex risk and supply chain disruptions.
- Geographical Concentration: High reliance on Maharashtra and Karnataka.
- Manufacturing Reliance: Dependence on third-party contract manufacturers poses quality and supply risks.
Financial & IPO Risks
- Profit Sustainability: The 110% PAT growth in FY25 is a major red flag for sustainability.
- Low Subscription & Flat GMP: Indicates weak initial demand and a high chance of a flat or discounted listing.
- SME Volatility: SME IPOs are inherently more volatile and less liquid than mainboard IPOs.
Opportunities & Growth Drivers
Customer Base Growth
Strategic Growth Levers
- Market Expansion: Potential to enter untapped Tier-2 and Tier-3 cities.
- Product Innovation: Developing more in-house proprietary brands to improve margins.
- Industry Tailwinds: The Indian aesthetics market's 13.9% CAGR provides a strong backdrop for growth.
- IPO Capital: Funds will be used for working capital to scale inventory and expand the sales network.
Customer Base Growth
Strategic Growth Levers
- Market Expansion: Potential to enter untapped Tier-2 and Tier-3 cities.
- Product Innovation: Developing more in-house proprietary brands to improve margins.
- Industry Tailwinds: The Indian aesthetics market's 13.9% CAGR provides a strong backdrop for growth.
- IPO Capital: Funds will be used for working capital to scale inventory and expand the sales network.
Investor Sentiment & Analyst Perspectives
Analyst View (Dilip Davda)
Recommends a "cautious" approach. Highlights the attractive valuation (P/E of ~11.9x) but points to the financial sustainability concerns in FY25. Suggests the IPO is suitable for long-term investors with a 2-3 year horizon who can tolerate risk.
Market & Retail Sentiment
General sentiment is muted, as reflected on social platforms like X (formerly Twitter) and in brokerage feedback. The key concerns are:
- The flat GMP and low Day 1 subscription.
- The "pre-IPO financial engineering" concern around the FY25 profit spike.
- The inherent risks of SME IPOs in a volatile market.
Post-Listing Scenarios & Long-Term Outlook
Scenario
Trigger
Potential Outcome
Probability
Optimistic
Subscription crosses 3x; market sentiment improves.
Listing gain of 10-20% (₹77-82).
Fair
Neutral / Flat
Subscription remains low (~1-1.5x); GMP stays nil.
Flat listing at issue price (₹68-72).
High
Pessimistic
Under-subscription; negative market correction.
Discounted listing of 5-15% (₹60-65).
Low
3-5 Year Outlook
Bull Case: If Aakaar successfully diversifies geographically, reduces import dependency, and maintains 20-30% growth, the stock has the potential to become a multi-bagger (₹150-250).
Bear Case: If growth stalls and the company fails to address its core risks, the share price could languish or fall below the issue price (₹50-80).
Conclusion & Action Plan
The Aakaar Medical Technologies IPO presents a niche Indian investment opportunity within a high-potential growth medical aesthetics market. With a 36% revenue CAGR and an attractive valuation, its B2B positioning makes a strong long-term case. However, several red flags temper the immediate outlook.
- Muted Sentiment: Flat GMP (₹0) and low Day 1 subscription (0.37x) signal a high probability of a flat or even discounted listing.
- Sustainability Concerns: The 110% PAT spike in FY25 is a significant concern regarding its replicability.
- Core Risks: Heavy import dependency (60-70%) and geographical concentration remain major operational hurdles.
- SME Volatility: High price swings are common post-listing for SME stocks.
Action Plan for Investors
- Long-Term Investors: If you believe in the Indian aesthetics growth story and can tolerate high risk, applying for this IPO with a 3-5 year horizon could be considered. Potential for 2x-3x returns exists if the company executes its growth plans effectively.
- Short-Term Investors: Avoid this IPO. The lack of GMP and weak initial demand point to a very low chance of listing gains.
- Must-Track Metrics: Closely monitor the subscription figures on June 23-24. A surge past 2x-3x could slightly improve listing prospects. Also, keep an eye on overall market sentiment.
Frequently Asked Questions (FAQ)
The GMP is ₹0 (nil) as of June 22, 2025, suggesting a likely flat listing at the issue price range of ₹68–₹72 per share. A nil GMP indicates a very low speculative interest in the grey market because cautious investor sentiment regarding the IPO is due to its low initial day subscription (0.37x or 37%) and financial sustainability concerns. However, GMP is an unregulated and speculative measure and not considered a reliable guide to performance upon listing. Investors should rather focus on fundamentals and subscription trends.
The IPO is a fresh issue of ₹27 crore, comprising 37.50 lakh equity shares, priced at ₹68–₹72 per share, and the lot size is of 1,600 shares (₹1,08,800–₹1,15,200 for retail investors). The IPO opened on June 20, 2025, and closes on June 24, 2025, and listing is scheduled for June 27, 2025. The funds will be utilized for working capital and general corporate purposes. It was 0.37x subscribed on the first day (June 20): retail at 0.30x, NII at 0.59x, and QIB at 0.33x.
This IPO is a play on India's booming medical aesthetics market which is growing at 13.9% CAGR. Aakaar's robust revenue jump (36% CAGR) with an attractive P/E (~11.9x) is a positive. However, retail investors should be careful with:
- Flat GMP (₹0), indicating almost no listing gain.
- Weak demand as reflected in low Day 1 subscription (37%).
- Import dependency of 60–70% products on foreign sources and FY25 profit sustainability concerns.
Long-term investors bullish on aesthetics might consider it for application, but short-term investors should avoid unless subscription improves significantly by June 24, 2025. Consult financial advisors and review the RHP before making any decisions.
The key risks include:
- Financial Sustainability: A PAT jump of 110% in FY25 (₹6.04 crore) raises replicability concerns as flagged by analysts.
- Import Dependence: 60–70% of the products imported pushes the company to fluctuation in forex, disruption in supply chain, and geopolitical risks.
- Geographical Concentration: Maharashtra and Karnataka contribute most revenue (~60%), posing regional market risks.
- Low Subscription: 37% subscription on Day 1 increases flat or discounted possibility at listing.
- SME Volatility: Post-listing sharp price swings are characteristics of SME IPOs.
These have to be traded off with the growth potential of the company, as well as the industry tailwinds.
To Apply:
- Use platforms such as Zerodha, Groww, Upstox, or BlinkX that support NSE SME IPOs.
- Log in, find IPO section and select Aakaar Medical Technologies IPO.
- Fill in the UPI ID, number of shares (at least 1 lot of 1,600 shares), and price (preferably cut-off price: ₹72).
- Submit and approve the payment mandate via UPI or ASBA.
To Check Allotment (post-June 25, 2025):
Visit Bigshare Services' site (https://www.bigshareonline.com/ipo_allotment.html). Enter PAN, application number, or DP Client ID. Or check on NSE/BSE or your brokerage platform.
Aakaar caters to India's burgeoning medical aesthetics market (expected to increase to USD 618.8 million by 2030 at CAGR 13.9%), with a healthy 36% CAGRs revenue growth and a B2B base of 5,205 customers. In long-term potential:
- Expansion into Tier-2/3 cities and new states.
- In-house manufacturing development to limit import dependency.
- Capitalize on a demand for non-invasive procedures.
However, there could be impediments like import risks, financial sustainability, and competition from global players (e.g. Allergan, Galderma). If Aakaar keeps up revenue growth from 20-30%, over 3-5 years, it has the potential for returns of 2-4 times, execution being the most important though.
Disclaimer: Investing in the IPOs involves market risk. GMP is a speculative figure and not official. Carry out your own research before investing, and consult with a professional.
| Scenario | Trigger | Potential Outcome | Probability |
|---|---|---|---|
| Optimistic | Subscription crosses 3x; market sentiment improves. | Listing gain of 10-20% (₹77-82). | Fair |
| Neutral / Flat | Subscription remains low (~1-1.5x); GMP stays nil. | Flat listing at issue price (₹68-72). | High |
| Pessimistic | Under-subscription; negative market correction. | Discounted listing of 5-15% (₹60-65). | Low |
3-5 Year Outlook
Bull Case: If Aakaar successfully diversifies geographically, reduces import dependency, and maintains 20-30% growth, the stock has the potential to become a multi-bagger (₹150-250).
Bear Case: If growth stalls and the company fails to address its core risks, the share price could languish or fall below the issue price (₹50-80).
Conclusion & Action Plan
The Aakaar Medical Technologies IPO presents a niche Indian investment opportunity within a high-potential growth medical aesthetics market. With a 36% revenue CAGR and an attractive valuation, its B2B positioning makes a strong long-term case. However, several red flags temper the immediate outlook.
- Muted Sentiment: Flat GMP (₹0) and low Day 1 subscription (0.37x) signal a high probability of a flat or even discounted listing.
- Sustainability Concerns: The 110% PAT spike in FY25 is a significant concern regarding its replicability.
- Core Risks: Heavy import dependency (60-70%) and geographical concentration remain major operational hurdles.
- SME Volatility: High price swings are common post-listing for SME stocks.
Action Plan for Investors
- Long-Term Investors: If you believe in the Indian aesthetics growth story and can tolerate high risk, applying for this IPO with a 3-5 year horizon could be considered. Potential for 2x-3x returns exists if the company executes its growth plans effectively.
- Short-Term Investors: Avoid this IPO. The lack of GMP and weak initial demand point to a very low chance of listing gains.
- Must-Track Metrics: Closely monitor the subscription figures on June 23-24. A surge past 2x-3x could slightly improve listing prospects. Also, keep an eye on overall market sentiment.
Frequently Asked Questions (FAQ)
The GMP is ₹0 (nil) as of June 22, 2025, suggesting a likely flat listing at the issue price range of ₹68–₹72 per share. A nil GMP indicates a very low speculative interest in the grey market because cautious investor sentiment regarding the IPO is due to its low initial day subscription (0.37x or 37%) and financial sustainability concerns. However, GMP is an unregulated and speculative measure and not considered a reliable guide to performance upon listing. Investors should rather focus on fundamentals and subscription trends.
The IPO is a fresh issue of ₹27 crore, comprising 37.50 lakh equity shares, priced at ₹68–₹72 per share, and the lot size is of 1,600 shares (₹1,08,800–₹1,15,200 for retail investors). The IPO opened on June 20, 2025, and closes on June 24, 2025, and listing is scheduled for June 27, 2025. The funds will be utilized for working capital and general corporate purposes. It was 0.37x subscribed on the first day (June 20): retail at 0.30x, NII at 0.59x, and QIB at 0.33x.
This IPO is a play on India's booming medical aesthetics market which is growing at 13.9% CAGR. Aakaar's robust revenue jump (36% CAGR) with an attractive P/E (~11.9x) is a positive. However, retail investors should be careful with:
- Flat GMP (₹0), indicating almost no listing gain.
- Weak demand as reflected in low Day 1 subscription (37%).
- Import dependency of 60–70% products on foreign sources and FY25 profit sustainability concerns.
Long-term investors bullish on aesthetics might consider it for application, but short-term investors should avoid unless subscription improves significantly by June 24, 2025. Consult financial advisors and review the RHP before making any decisions.
The key risks include:
- Financial Sustainability: A PAT jump of 110% in FY25 (₹6.04 crore) raises replicability concerns as flagged by analysts.
- Import Dependence: 60–70% of the products imported pushes the company to fluctuation in forex, disruption in supply chain, and geopolitical risks.
- Geographical Concentration: Maharashtra and Karnataka contribute most revenue (~60%), posing regional market risks.
- Low Subscription: 37% subscription on Day 1 increases flat or discounted possibility at listing.
- SME Volatility: Post-listing sharp price swings are characteristics of SME IPOs.
These have to be traded off with the growth potential of the company, as well as the industry tailwinds.
To Apply:
- Use platforms such as Zerodha, Groww, Upstox, or BlinkX that support NSE SME IPOs.
- Log in, find IPO section and select Aakaar Medical Technologies IPO.
- Fill in the UPI ID, number of shares (at least 1 lot of 1,600 shares), and price (preferably cut-off price: ₹72).
- Submit and approve the payment mandate via UPI or ASBA.
To Check Allotment (post-June 25, 2025):
Visit Bigshare Services' site (https://www.bigshareonline.com/ipo_allotment.html). Enter PAN, application number, or DP Client ID. Or check on NSE/BSE or your brokerage platform.
Aakaar caters to India's burgeoning medical aesthetics market (expected to increase to USD 618.8 million by 2030 at CAGR 13.9%), with a healthy 36% CAGRs revenue growth and a B2B base of 5,205 customers. In long-term potential:
- Expansion into Tier-2/3 cities and new states.
- In-house manufacturing development to limit import dependency.
- Capitalize on a demand for non-invasive procedures.
However, there could be impediments like import risks, financial sustainability, and competition from global players (e.g. Allergan, Galderma). If Aakaar keeps up revenue growth from 20-30%, over 3-5 years, it has the potential for returns of 2-4 times, execution being the most important though.
The GMP is ₹0 (nil) as of June 22, 2025, suggesting a likely flat listing at the issue price range of ₹68–₹72 per share. A nil GMP indicates a very low speculative interest in the grey market because cautious investor sentiment regarding the IPO is due to its low initial day subscription (0.37x or 37%) and financial sustainability concerns. However, GMP is an unregulated and speculative measure and not considered a reliable guide to performance upon listing. Investors should rather focus on fundamentals and subscription trends.
The IPO is a fresh issue of ₹27 crore, comprising 37.50 lakh equity shares, priced at ₹68–₹72 per share, and the lot size is of 1,600 shares (₹1,08,800–₹1,15,200 for retail investors). The IPO opened on June 20, 2025, and closes on June 24, 2025, and listing is scheduled for June 27, 2025. The funds will be utilized for working capital and general corporate purposes. It was 0.37x subscribed on the first day (June 20): retail at 0.30x, NII at 0.59x, and QIB at 0.33x.
This IPO is a play on India's booming medical aesthetics market which is growing at 13.9% CAGR. Aakaar's robust revenue jump (36% CAGR) with an attractive P/E (~11.9x) is a positive. However, retail investors should be careful with:
- Flat GMP (₹0), indicating almost no listing gain.
- Weak demand as reflected in low Day 1 subscription (37%).
- Import dependency of 60–70% products on foreign sources and FY25 profit sustainability concerns.
Long-term investors bullish on aesthetics might consider it for application, but short-term investors should avoid unless subscription improves significantly by June 24, 2025. Consult financial advisors and review the RHP before making any decisions.
The key risks include:
- Financial Sustainability: A PAT jump of 110% in FY25 (₹6.04 crore) raises replicability concerns as flagged by analysts.
- Import Dependence: 60–70% of the products imported pushes the company to fluctuation in forex, disruption in supply chain, and geopolitical risks.
- Geographical Concentration: Maharashtra and Karnataka contribute most revenue (~60%), posing regional market risks.
- Low Subscription: 37% subscription on Day 1 increases flat or discounted possibility at listing.
- SME Volatility: Post-listing sharp price swings are characteristics of SME IPOs.
These have to be traded off with the growth potential of the company, as well as the industry tailwinds.
To Apply:
- Use platforms such as Zerodha, Groww, Upstox, or BlinkX that support NSE SME IPOs.
- Log in, find IPO section and select Aakaar Medical Technologies IPO.
- Fill in the UPI ID, number of shares (at least 1 lot of 1,600 shares), and price (preferably cut-off price: ₹72).
- Submit and approve the payment mandate via UPI or ASBA.
To Check Allotment (post-June 25, 2025):
Visit Bigshare Services' site (https://www.bigshareonline.com/ipo_allotment.html). Enter PAN, application number, or DP Client ID. Or check on NSE/BSE or your brokerage platform.
Aakaar caters to India's burgeoning medical aesthetics market (expected to increase to USD 618.8 million by 2030 at CAGR 13.9%), with a healthy 36% CAGRs revenue growth and a B2B base of 5,205 customers. In long-term potential:
- Expansion into Tier-2/3 cities and new states.
- In-house manufacturing development to limit import dependency.
- Capitalize on a demand for non-invasive procedures.
However, there could be impediments like import risks, financial sustainability, and competition from global players (e.g. Allergan, Galderma). If Aakaar keeps up revenue growth from 20-30%, over 3-5 years, it has the potential for returns of 2-4 times, execution being the most important though.
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