Aprameya Engineering Ltd IPO

Last Updated on October 10, 2023 by BFSLTeam BFSLTeam

As per reports by Statista, India’s medical devices market is predicted to reach USD 9.02 billion by 2028. Thus, investors are actively looking for companies with long-term growth potential operating in this sector. The Aprameya Engineering Pvt Ltd IPO can be an excellent choice as it is a leading medical equipment manufacturer and healthcare infrastructure provider with one and a half decade of expertise. 

The company had filed its draft papers to launch an IPO in September 2022. Its plan was to issue 50 lakh shares through a fresh issue. However, it has withdrawn its plan currently.

Want to know more? Keep reading!

About Aprameya Engineering Ltd

Operational since 2003, Aprameya Engineering India Pvt Ltd is one of the country’s fast-growing medical equipment manufacturers. It belongs to the top 5 electrosurgical generator suppliers and distributors in India and provides maintenance and installation solutions for a wide array of healthcare and diagnostic equipment for:

• Operation Theatres
• Intensive Care Units (ICU)
• Neonatal Intensive Care Units (NICU)
• Paediatric Intensive Care Units (PICU)
• Prefabricated Structure Wards

This company also sells high-value medical equipment as a dealer and supplier for the following marquee organisations: 

• Siemens Healthcare Private Ltd 
• Draeger India Pvt Ltd 
• Johnson & Johnson Private Ltd, etc.

Aprameya Engineering Ltd IPO Details

Aprameya Engineering Ltd has declared a fresh issue size of 50 lakh equity shares each having a face value of Rs. 10. The company is yet to declare details like IPO bid opening and closing date, listing date, lot size and price band.

Hem Securities Ltd is the book-running lead manager for this public issue, while Link Intime India Private Ltd is the registrar. Investors can visit the latter’s website to visit their IPO application status. 

They simply need to select the IPO name from the drop-down menu, enter their PAN and click on ‘Search’. The website will display any new updates regarding the Aprameya Engineering Pvt Ltd IPO share allotment.

Also Read: How To Apply For An IPO?

Aprameya Engineering Ltd IPO Objectives

The main purpose of this IPO is to acquire sufficient funds for the company’s working capital requirements. Aprameya Engineering India intends to use roughly Rs. 37 crore of the net proceeds for working capital in FY23 and Rs. 33 crore in FY24. It will keep utilising additional capital in increments to increase its profitability and capitalise on growth opportunities as per the business plan. 

The rest of the amount (below 25% of the net proceeds) will be used for general corporate purposes. This includes requirements such as strategic initiatives, expansion plans, growth opportunities, etc. Some of the proceeds may be used for IPO-related expenses as well.

Strengths

Listed below are the strengths of investing in Aprameya Engineering Ltd:

• Long-term distributor and service agreements with large-scale medical device suppliers
• Consistent operational revenue increases between FY 2020 to 2022, with figures rising from Rs. 1,223.24 lakh to Rs. 19,999.46 lakh
• 1,181 installations of PICUs, NICUs and ICUs over the last two years
• Wide customer base across both government and private sectors
• Experienced team of professionals with a high degree of domain knowledge
• Asset-light business model which requires minimum investment to increase operations

Risks

The risks of investing in the Aprameya Engineering Ltd IPO are as follows:

• Loss of key clients or a significant reduction in demand from their end can heavily impact operations and finances. 
• The company gains government projects via a competitive bidding process. There is no guarantee of securing them every time, which can affect business growth and finances. 
• Any decline in spending on healthcare infrastructure can severely impact business and operations. 

Also Read: Benefits of Investing in IPO

Conclusion

By now, you will have a clear idea of the company’s strengths and weaknesses, which will help you make an informed choice on whether to invest in the Aprameya Engineering Pvt Ltd IPO. However, as per the latest news, the company has withdrawn its IPO plans for the time being.

So, until it again files an application to SEBI for launching its public issue, you will have time to go through the company’s DRHP. It will provide you a detailed insight into its growth potential and how much you should invest keeping in mind your risk appetite.  

Also Read: How Can You Analyse An IPO?

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