Medicap Healthcare IPO

About Medicap Healthcare IPO

Medicap Healthcare IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the Demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The IPO of Medicap Healthcare comprises a fresh issue aggregating up to ₹240 crores. There is no offer for sale in this IPO, which is a 100% book-built issue. The lot size of shares in the IPO is TBA and the price band of shares is TBA per share.

The minimum investment amount required by a retail investor is TBA based on the upper price. The minimum lot for retail investors is TBA.

Medicap Healthcare is a prominent player in the Indian pharmaceutical packaging sector, specialising in the production of pharmaceutical closures, including Euro Head caps and bottle preforms. The company has about 1.4% of the global market share and more than 40% domestic market share for Euro Head caps.

Objectives of Medicap Healthcare IPO

The company proposes to utilise the IPO proceeds for:

• Purchasing of plant and machinery for its existing manufacturing unit
• Repayment or pre-payment, in full or part, of certain borrowings availed by the company
• Further investment in its subsidiary KASR Healthcare for repayment or pre-payment, in full or part, of its certain borrowings
• General corporate purposes

Industry Outlook

The global pharma packaging market was valued at USD 37.5 billion in 2024 and is projected to reach USD 51.4 billion by 2029, growing at a CAGR of around 6.5% during the forecast period. The Indian pharma packaging market was valued at USD 1.80 billion in 2024 and is projected to reach USD 2.67 billion by 2029.

The market has historically grown at a CAGR of 7.9%. from 2018 to 2024. Due to the well-established pharmaceutical industry, rising investments in the sector, the expanding population, increasing health awareness, and rising life expectancy, the market for plastic pharmaceutical packaging solutions in India is anticipated to grow at a CAGR of 8.2% during the forecast period (2024 to 2029).

About Medicap Healthcare

Medicap Healthcare is a prominent player in the Indian pharmaceutical packaging sector, specialising in the production of pharmaceutical closures, including Euro Head caps and bottle preforms. The company has about 1.4% of the global market share and more than 40% domestic market share for Euro Head caps. The company is fast emerging as a strong and reliable partner to the pharma and healthcare industry.

Strengths of Medicap Healthcare

• Well-positioned to capture favourable industry tailwinds in the growing pharma packaging caps and closure and bottle preforms market
• Strategically located manufacturing facility coupled with quality-centric and precision-driven manufacturing infrastructure driving production efficiency
• Robust domestic and global market presence driving sustainable growth
• Long standing relationships with customers and suppliers with track record of repeat orders
• Growth due to specialised products

Risks of Medicap Healthcare

• Slowdown in the demand for Euro Head Caps could have a material adverse effect on the business
• Decrease in revenue from operations from any of key customers or any loss of these customers may adversely effect on business
• Failures to comply with the existing and future regulatory requirements in Indian consumables markets could expose the company to litigation or other liabilities
• Any adverse developments affecting the state of Gujarat could affect business, results of operations and cash flows
• Revenue is highly concentrated in a single manufacturing facility located in Gujarat and in the Western region of India
• Failure to obtain, renew or maintain statutory and regulatory permits and approvals in a timely manner may adversely affect operations
• Any loss of suppliers or interruptions in the timely delivery of supplies or volatility in their prices could have an adverse impact on business
• Any exchange rate fluctuations may adversely affect business
• Product defects or failure by suppliers to comply with quality standards may lead to cancellation of existing and future orders or liability claims
• Under-utilisation of manufacturing capacities and an inability to effectively utilise expanded manufacturing capacities could have an adverse effect on business

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: KFin Technologies
• Book Running Lead Manager: Aryaman Financial Services

Medicap Healthcare Business Model

Medicap Healthcare is fast emerging as a strong and reliable partner to the pharma and healthcare industry with its comprehensive portfolio of closures, particularly through Euro Head caps. The company is not only meeting the growing domestic demand for Euro Head caps, but also exporting to other countries, offering high-quality products that comply with international standards.

Medicap Healthcare Growth Trajectory

The revenue of operations of Medicap Healthcare grew from ₹71.597 crores in FY 23 to ₹108.303 crores in FY 25. Its EBITDA margin increased from 31.67% in FY 23 to 34.31% in FY 25. PAT margin also rose from 20.65% in FY 23 to 24.58% in FY 25. Robust domestic and global market presence and a long-standing relationship with customers and suppliers have helped the company grow over the years.

Medicap Healthcare Market Position

Medicap Healthcare started operations in 2014 as a partnership firm and then subsequently in 2017 was converted into a public limited company. As of the financial year ended March 31, 2025, the company had 46 customers. It exports its products to Asia, Africa, Europe and America.

How to Apply for Medicap Healthcare IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.