SME IPO KRM Ayurveda SME IPO: From issue price, key risks to valuations - Check 5 ‘must know’ details

KRM Ayurveda will be going public via an SME IPO to raise Rs 77.49 crore. The issue is entirely a fresh issue of 0.57 crore shares. The company set the IPO price band in a range of Rs 128 -135 per equity share. KRM Ayurveda IPO will open for subscription on January 19 and close on January 21. The allotment for the IPO shares is expected to be finalised on January 22, while the listing of shares on the NSE SME platform is likely to be on January 27, as per the tentative schedule. KRM Ayurveda SME IPO: Objectives of the issue The company will be using Rs 13.67 crore for the capital expenditure of construction and development of Telemedicine operational facilities. Also, the company will be using Rs 22.90 crore for working capital requirements, while it will utilise Rs 12.50 crore for the payment of borrowings. KRM Ayurveda SME IPO: Lot size The retail applicant needs to apply for a minimum of two lots, containing 1,00 shares each, which amounts to Rs 2.70 lakh. The minimum lot size for investment in the HNI category is 3 lots of 3,000 shares, totalling Rs 4.05 lakh. KRM Ayurveda SME IPO: Book runner and registrar NEXGEN Financial Solutions is the book-running lead manager of the issue, and Skyline Financial Services is the registrar of the IPO. The Market Maker of the company is Mansi Share & Stock Broking. KRM Ayurveda SME IPO: About KRM Ayurveda KRM Ayurveda is operating a network of hospitals and clinics across multiple cities in India, as well as marking its presence abroad through telemedicine consulting and sales. Incorporated in 2019, the company manufactured Ayurvedic products, herbal and botanical remedies, medicines, supplements and possibly skin care/wellness-related items. Presently, the company runs 6 (Six) Hospitals and 5 (Five) Clinics at different locations in the country. KRM Ayurveda SME IPO: Key risks Here is a quick look at some of the key risks that investors should watch out for- #1 Non-ownership of operational premises: The company’s Registered Office and major hospital premises are not owned but are instead held under lease or rental arrangements, some of which involve the Promoters. There is no guarantee that these leases will be renewed on commercially favourable terms, and any requirement to vacate these premises could disrupt operations and lead to significant relocation costs. #2 Geographic concentration of revenue: A substantial portion of the company’s income is derived from just two states, Delhi and Haryana. For the period ending September 30, 2025, these states accounted for 68.44% of the total revenue from operations. #3 High employee attrition rates: KRM Ayurveda has faced significant turnover among its staff, with an attrition rate spiking to 78.47% in the FY24. #4 Outstanding legal proceedings: The company and its promoters are currently involved in several outstanding litigations and consumer complaints. These include allegations of medical negligence and claims regarding the efficacy of Ayurvedic treatments.