KRM Ayurveda IPO Overview
Delhi/Gurugram-based Ayurvedic healthcare provider raising ₹77.49 cr (100% fresh issue). Price: ₹128-135 (Book Building). Lot: 1,000 shares (₹2,70,000 min investment – 2 lots). GMP: ₹18 (13.33% premium over upper band – ₹153 expected listing).
Funds for telemedicine facility construction, CRM software/hardware infrastructure, general corporate purposes (specific amounts not disclosed). NO OFS – 100% fresh issue.
Lead: NEXGEN Financial Solutions.
Registrar: Skyline Financial Services.
Incorporated 3 September 2019 (ONLY 6+ years old! – VERY YOUNG COMPANY). Originally claims “Karma Ayurveda brand familiar since 1937” but company itself incorporated 2019 – data conflict. Converted to public limited December 2024. Operates 6 hospitals + 5 clinics across India. 429 employees (Aug 2025). Known as “Karma Ayurveda” brand.
Products/Services: Ayurvedic hospitals & clinics specializing in kidney disorders (original focus), expanded to liver cirrhosis, diabetes, fatty liver, arthritis. In-patient & out-patient care, Panchakarma therapies, specialized clinics (orthopedics, skin/hair, women’s wellness, geriatrics), wellness programs (stress/weight management), diet/lifestyle/yoga counseling, in-house ayurvedic medicine dispensary, telemedicine consultations (India + international: UK, UAE, USA). Manufacturing: 300+ GMP-certified Ayurvedic products at Kundli (Haryana) facility – capsules, tablets, syrups, gels, oils, powders. Consumer brand “AyuKarma” (Shilajit Resin, Arsh Karma, herbal supplements).
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME (NSE SME) |
| IPO Open Date | 21 January 2026 (Tuesday) |
| IPO Close Date | 23 January 2026 (Thursday) – 3 days |
| Anchor Investor Bidding | 20 January 2026 (Monday) – SME anchor portion |
| Allotment Date | 27 January 2026 (Monday) – Expected |
| Credit to Demat | 28 January 2026 (Tuesday) – Expected |
| Refund Initiation | 28 January 2026 (Tuesday) – Expected |
| Listing Date | 29 January 2026 (Wednesday) – Tentative |
| Price Band | ₹128 to ₹135 per share (Book Building) |
| Face Value | ₹10 per share |
| Lot Size | 1,000 shares per lot (some sources say 2,000 – data conflict) |
| Min Investment (Retail) | ₹2,70,000 (2 lots = 2,000 shares at ₹135) |
| sNII Investment | ₹4,05,000 (3 lots minimum = 3,000 shares) |
| bNII Investment | Data not specified |
| Issue Size | ₹77.49 crore at upper band |
| Fresh Issue | ₹77.49 crore (100%) – 57,40,000 shares |
| Offer for Sale (OFS) | ₹0 (No OFS component) |
| Total Shares Offered | 57,40,000 equity shares (includes 4,24,000 for market makers) |
| Listing | NSE SME |
| Post-Issue Market Cap | ~₹287 crore (at upper band ₹135) |
Note: 100% fresh issue – no promoter exit. Promoter holding pre-IPO: 92.15% – majority retained post-IPO.
Issue Break-up
| Category | Allocation | Shares |
| QIB (Qualified Institutional Buyers) | 50% (44.84% total) | 25,74,000 shares |
| QIB (Ex-Anchor) | 17.98% | 10,32,000 shares |
| Anchor Investors | 26.86% | 15,42,000 shares |
| NII (Non-Institutional Investors) | 15% (13.59% total) | 7,80,000 shares |
| Retail Individual Investors | 35% (31.57% total) | 18,12,000 shares |
| Market Maker | 7.39% | 4,24,000 shares |
Note: QIB allocation includes 26.86% anchor portion. Retail gets 35% allocation. Net public offer is 53,16,000 shares (excluding 4.24 lakh market maker portion).
Selling Shareholders (OFS)
NO OFFER FOR SALE – 100% Fresh Issue
- No promoter selling
- Entire ₹77.49 cr proceeds go to company
- Promoters (Dr. Puneet Dhawan + Mrs. Tanya Dhawan) retain 92.15% pre-IPO stake
- Demonstrates promoter confidence – no exit after IPO
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹77.49 crore at upper band) will be used for:
General Allocation (Specific breakdowns NOT disclosed in available public documents):
- Capital Expenditure – Construction and Development of Telemedicine Operational Facilities
- Building new telemedicine infrastructure
- Expanding teleconsultation capabilities for domestic + international (UK, UAE, USA) patients
- Physical facility construction for telemedicine operations
- Technology integration for remote patient consultations
- Purchase of CRM Software and Hardware Infrastructure
- Customer Relationship Management (CRM) software for patient data management
- Hardware infrastructure: Servers, systems, networking equipment
- IT systems for hospital/clinic operations across 6 hospitals + 5 clinics
- Digital patient management, appointment scheduling, medical records digitization
- General Corporate Purposes – Balance funds
- Working capital for healthcare operations
- Hospital/clinic network expansion
- Marketing and patient acquisition
- IPO offer-related expenses (registrar, BRLM fees, legal, documentation)
- Ayurvedic medicine manufacturing capacity at Kundli (Haryana) facility
- Geographic expansion (new hospitals/clinics)
Strategic Context:
- Telemedicine capex reflects international expansion focus (UK, UAE, USA teleconsultations)
- CRM infrastructure critical for scaling 150,000+ patient base claimed
- Healthcare business requires high working capital (inventory of medicines, staff salaries, facility maintenance)
- Company ONLY 6 years old (incorporated Sept 2019) – short track record for IPO assessment
- ISO certification, GMP-certified 300+ products demonstrate quality focus
- “Karma Ayurveda” brand claims 1937 heritage but company incorporated 2019 – brand vs. entity distinction
Note: Lack of specific fund allocation amounts (telemedicine capex, CRM spend, working capital specifics) is transparency gap. Investors unable to assess capital deployment effectiveness without detailed breakdowns.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- NEXGEN Financial Solutions Private Limited
- Lead manager for IPO
- Contact details not disclosed in available sources
Registrar:
- Skyline Financial Services Private Limited
- Address: D-153 A, 1st Floor, Okhla Industrial Area, Phase – I, New Delhi – 110020
- Phone: +91-11-40450193-197
- Website: www.skylinerta.com
Market Maker:
- To be appointed for NSE SME platform (standard requirement)
Promoters & Management
Key Promoters (2 Individual Promoters – Dr. Dhawan & Wife):
- Dr. Puneet Dhawan – Founder, Promoter & Director
- Age: Data not disclosed (BAMS degree 2013 suggests ~35-40 years)
- Qualification: BAMS (Bachelor of Ayurvedic Medicine and Surgery), University of Delhi (2013)
- Experience: 12+ years treating renal and lifestyle-related disorders
- Recognition: Indian Fitness Association – “Best Ayurveda Doctor in India”
- Role: Oversees hospitals, qualified medical team, strategic direction
- Founder of “Karma Ayurveda” brand (KRM Ayurveda Ltd entity since 2019)
- Mrs. Tanya Dhawan – Promoter & Non-Executive Director
- Qualification: Master’s degree in Mass Communication (Guru Gobind Singh Indraprastha University), Professional Diploma in Dietetics
- Experience: 3+ years industry experience
- Role: Health consultancy, wellness initiatives, strategic support
- Wife of Dr. Puneet Dhawan
Other Director:
- Mr. Sanchit Hans – Whole-Time Director (Age: 28 years)
- Appointed March 15, 2025 (5-year term)
- Qualification: Bachelor’s degree in Commerce (2014)
- Experience: 4+ years business administration and operations
- Associated with KRM Ayurveda since inception (2019)
Promoter Holding:
- Pre-IPO: 92.15% (Dr. Puneet Dhawan + Mrs. Tanya Dhawan)
- Post-IPO: Estimated 65-70% after dilution (57.40 lakh shares issued)
- NO OFS – promoters NOT exiting
Company Contact:
- Registered Office: Plot No. A-80, Pushpak Industrial Park, Hapur Road, Near HDFC Bank, Kala Bakra, Gurugram – 122003, Haryana, India
- Website: www.karmaayurveda.com / www.karmaayurveda.in
COMPANY DETAILS
KRM Ayurveda Limited is a Delhi/Gurugram-based Ayurvedic healthcare provider incorporated on 3 September 2019, making it ONLY 6+ years old as a corporate entity – EXTREMELY YOUNG (company claims “Karma Ayurveda brand familiar since 1937” but entity itself incorporated 2019 creating data conflict on heritage), converted to public limited in December 2024. Operating under “Karma Ayurveda” brand with 6 multi-specialty hospitals and 5 clinics across multiple Indian cities plus international teleconsultation presence in UK, UAE, USA, the company specializes in Ayurvedic treatment for kidney disorders (original founding focus), expanded to chronic and lifestyle conditions including liver cirrhosis, diabetes, fatty liver, arthritis, and preventive healthcare, providing in-patient/out-patient care, Panchakarma therapies, specialized clinics (orthopedics, skin/hair, women’s wellness, geriatrics), wellness programs (stress/weight management), diet/lifestyle/yoga counseling, and in-house certified Ayurvedic medicine dispensary, supported by GMP-certified manufacturing facility in Kundli (Haryana) producing 300+ products (capsules, tablets, syrups, gels, oils, powders) under consumer brand “AyuKarma” (Shilajit Resin, Arsh Karma, herbal supplements), serving 150,000+ patients claimed with 429 employees (Aug 2025).
Key Highlights:
- ONLY 6 Years Old: Incorporated 3 Sept 2019 (6+ years) – VERY YOUNG company despite “1937 brand” claims
- Location: Gurugram HQ + 6 hospitals + 5 clinics across India, telemedicine (UK, UAE, USA)
- Strong Recent Growth: Revenue +13.87% (₹67.57 cr to ₹76.95 cr FY24-25), PAT +254.84% (₹3.41 cr to ₹12.10 cr FY24-25) – EXPLOSIVE profit growth
- PAT Margin Expansion: Margin improved significantly from ~5.05% (FY24) to ~15.73% (FY25) – 1,068 bps expansion (estimated)
- Working Capital Stress: Debtor days increased 39.9 → 57.8 days (45% increase), Working capital days 40.5 → 64.4 days (59% increase) – receivables/payment collection deteriorating
- Good GMP: ₹18 (13.33% premium) – decent retail investor interest
- Promoter Backing: Dr. Puneet Dhawan (BAMS, 12+ years, “Best Ayurveda Doctor India”) + wife Tanya Dhawan hold 92.15% pre-IPO – NO exit
Operations
Geographic Presence:
- Headquarters: Gurugram, Haryana (Plot No. A-80, Pushpak Industrial Park, Hapur Road)
- Hospital/Clinic Network: 6 hospitals + 5 clinics across multiple Indian cities (specific locations not disclosed)
- Manufacturing: Kundli, Haryana – GMP-certified facility for 300+ Ayurvedic products
- Telemedicine: India + International (UK, UAE, USA)
Growth Trajectory:
- Revenue Growth (FY24-25): +13.87% YoY (₹67.57 cr to ₹76.95 cr) – modest double-digit growth
- PAT EXPLOSION (FY24-25): +254.84% YoY (₹3.41 cr to ₹12.10 cr) – 3.5X profit jump!
- PAT Margin Expansion: Estimated 5.05% (FY24) to 15.73% (FY25) – ~1,068 bps expansion (MASSIVE improvement)
- Absolute Scale: ₹76.95 cr revenue, ₹12.10 cr PAT – SMALL for healthcare sector but strong profitability
CRITICAL WORKING CAPITAL ISSUES:
- Debtor Days: 39.9 days (FY24) → 57.8 days (FY25) – 45% increase!
- Indicates customer payment delays worsening
- Healthcare receivables from patients/insurance taking longer to collect
- Working Capital Days: 40.5 days (FY24) → 64.4 days (FY25) – 59% increase!
- Working capital intensity rising – cash conversion cycle deteriorating
- Requires more funds locked in operations before realizing cash
CRITICAL CONTEXT:
- 13.87% revenue growth is modest but 254% PAT growth from ₹3.41 cr to ₹12.10 cr is EXPLOSIVE
- PAT margin expansion ~1,068 bps (5.05% to 15.73%) suggests:
- (1) Operational efficiency gains, (2) Pricing power improvements, (3) Product mix shift to higher-margin services/products
- Company ONLY 6 years old – FY24 revenue ₹67.57 cr represents 5th year operations
- Debtor days + working capital days deterioration is RED FLAG despite profit growth
- No disclosed EBITDA, ROE, ROCE data limits profitability/efficiency analysis
Sustainability Questions:
- Can 254% PAT growth sustain or was FY25 exceptional?
- Will 15.73% PAT margins hold or compress with scale/competition?
- How to address worsening debtor days (57.8 days) and working capital stress (64.4 days)?
Company Strengths
- India’s AYUSH healthcare market growing at 15-17% CAGR driven by government initiatives Ministry of AYUSH support and increasing consumer preference for natural holistic treatments creating strong sectoral tailwinds for traditional medicine providers.
- KRM Ayurveda achieved explosive 254.84% PAT growth from ₹3.41 crores FY24 to ₹12.10 crores FY25 with revenue growth of 13.87% demonstrating remarkable operating leverage and margin expansion from approximately 5% to 15.73% PAT margin.
- The company operates integrated healthcare ecosystem combining 6 hospitals plus 5 clinics with telemedicine consultations and in-house GMP-certified manufacturing of 300 plus ayurvedic products creating vertically integrated business model unlike fragmented competitors.
- Specialized expertise in kidney disorders which was original founding focus provides niche competitive positioning in high-value chronic care segment with kidney patients requiring long-term treatment creating recurring revenue opportunity.
- Strong promoter commitment with Dr Puneet Dhawan recognized as Best Ayurveda Doctor in India by Indian Fitness Association holding 92.15% stake pre-IPO with zero OFS demonstrating long-term confidence versus quick exit.
- International telemedicine presence in UK UAE USA expands addressable market beyond India targeting global diaspora and wellness-seeking international patients providing forex earnings and geographic diversification.
- Brand heritage claim of Karma Ayurveda familiar since 1937 provides legacy credibility though company entity itself incorporated 2019 creating brand equity advantage in consumer trust building.
- Manufacturing capability with 300 plus GMP-certified products at Kundli facility enables margin control through vertical integration avoiding third-party procurement costs while offering product sales revenue stream beyond hospital services.
- Patient base of 150000 plus claimed demonstrates market acceptance and provides foundation for cross-selling opportunities across hospital clinic telemedicine and product sales creating network effects.
- Decent grey market premium of ₹18 representing 13.33% indicates positive retail investor sentiment and expected listing gains unlike many SME IPOs with negligible or negative GMP.
Key Risks & Challenges
- Only 6 years old since incorporation September 2019 making it extremely young company with limited track record and unproven long-term sustainability despite explosive recent growth creating execution risk for scaling operations.
- Debtor days surged 45% from 39.9 days to 57.8 days FY24-25 while working capital days increased 59% from 40.5 to 64.4 days indicating severe receivables collection deterioration and cash conversion problems despite profit growth.
- Small scale with ₹76.95 crores revenue and ₹12.10 crores PAT insufficient for meaningful healthcare presence versus established hospital chains Apollo Fortis Manipal creating competitive disadvantage in patient acquisition and insurance empanelment.
- Brand heritage confusion with company claiming Karma Ayurveda familiar since 1937 but entity incorporated 2019 raises transparency concerns about actual operating history versus marketing narrative potentially misleading investors.
- Intense competition from established ayurvedic players Patanjali Ayurveda with ₹10000 plus crores revenue Dabur Ayurvedic division Himalaya Drug Company plus thousands of regional ayurvedic clinics creating pricing pressure and patient acquisition costs.
- Regulatory risk with AYUSH sector facing evolving compliance requirements scientific validation demands and potential restrictions on treatment claims which could impact operations and require costly adaptations.
- Geographic concentration with 6 hospitals plus 5 clinics likely clustered in North India Delhi NCR region creates single-market dependency risk where local competition regulatory changes or economic slowdown would disproportionately impact.
- Working capital intensive healthcare business model requiring upfront inventory of medicines staff salaries facility maintenance before patient payments creates continuous funding needs beyond IPO proceeds.
- Kidney disorder specialization while providing niche positioning also creates patient volume dependency on specific disease prevalence limiting addressable market versus general multi-specialty hospitals treating broader conditions.
- Limited institutional backing with 100% fresh issue and promoter-driven growth model versus VC-backed peers indicates lack of sophisticated investor validation and potentially weaker corporate governance structures.
Disclaimer
This document is for educational and informational purposes only and does not constitute investment advice or recommendation. Investors are advised to read the Red Herring Prospectus (RHP) and consult with certified financial advisors before making any investment decisions. Past performance is not indicative of future results and investments are subject to market risks.
