Meri Step Healthcare IPO: In-Depth Analysis of Financials, Fundamentals & Listing Potential
Welcome to an in-depth analysis of a promising new Initial Public Offering (IPO). This particular IPO, Meri Step Healthcare, could potentially offer better prospects than others, such as the Highway Infrastructure IPO. In this comprehensive review, we will delve into its business model, financial health, fundamental parameters, Grey Market Premium (GMP), and projected listing gains. Stay with us until the end, and for daily IPO and Grey Market Premium updates, subscribe to our channel and join our Telegram group linked in the comments.
Robust Financial Health: A Closer Look at Meri Step Healthcare
When evaluating any company’s IPO, assessing its financial health is crucial. Here’s a breakdown of Meri Step Healthcare’s financial data for the 12-month periods ending 2023, 2024, and 2025:
- Assets: The company’s assets were approximately ₹15 crore in 2023, remained around ₹15 crore in 2024, and significantly increased to about ₹23 crore in 2025.
- Revenue/Income: Income stood at approximately ₹28 crore in 2023, grew to nearly ₹39-40 crore in 2024, and reached ₹50 crore in 2025.
- Profit After Tax (PAT): The profit after tax was ₹0.92 crore in 2023, rising to ₹3.3 crore in 2024, and further to ₹4.14 crore in 2025.
- Year-on-Year Growth: The company has demonstrated a 27% year-on-year revenue growth and approximately 25% profit growth.
- EBITDA: There has been significant improvement in EBITDA, from 1 to 5.54, and then to 5.60.
- Net Worth: Net worth increased from ₹1.07 crore to ₹11.69 crore, and currently stands at ₹16.83 crore.
- Reserves & Surplus: While there was no reserve surplus initially, it now stands at approximately ₹6.37 crore (from an earlier ₹6.79 crore).
- Borrowings: The company’s borrowings are very low, around ₹54 lakh, making it almost a debt-free company. Overall, Meri Step Healthcare exhibits sound financial health.
Strong Fundamental Performance and Attractive Valuation
Beyond financials, basic fundamental parameters are key indicators of a company’s strength:
- Return on Equity (ROE): The company boasts an ROE of 29%.
- Return on Capital Employed (ROCE): ROCE is strong at 39%.
- Profit After Tax (PAT) Margin: The PAT margin is 8.35%.
- EBITDA Margin: EBITDA margin stands at 11.27%.
- Price to Book Value (P/B): The P/B ratio is 2.67.
- Price to Earnings (P/E): The pre-IPO P/E was 10.86, and post-IPO, it is expected to be 14.74. This is significantly lower than its listed peers, which have P/E ratios ranging from 40 to 200, indicating an attractive valuation. This attractive valuation is contributing to the positive momentum in its Grey Market Premium.
How Will IPO Funds Be Utilized?
The funds raised through this IPO will be primarily used for:
- Machinery Purchase: Approximately ₹0.51 crore will be used for buying machinery.
- Working Capital Requirements: Around ₹12 crore is allocated for working capital needs.
- General Corporate Purposes: Approximately ₹1.64 crore will be used for general corporate purposes.
Meri Step Healthcare IPO: Key Details and Important Dates
The Meri Step Healthcare IPO was open for subscription with these key details:
- Open Date: August 8th
- Application Deadline: August 12th (last day)
- Face Value: ₹10 per equity share.
- Price Band: Investors were advised to apply at the upper price band of ₹43 per share.
- Minimum Lot Size: A minimum of 3000 equity shares were required per lot for individual investors. However, the requirement shifted to two lots (6000 equity shares) for retail, amounting to ₹2,58,000+. For HNI, three lots (amounting to ₹3,87,000) could be applied for.
- Total Issue Size: The total issue size is ₹16 crore, entirely a fresh issue, meaning all proceeds will go directly to the company. The fresh issue portion for the company is ₹15.29 crore, with some portion allocated to market makers.
- Listing Platform: The company will be listed on the NSE SME platform.
- Allocation:
- 5% allocated to Market Makers.
- HNI (High Net Worth Individual) category: Approximately 47.44% of shares.
- Retail Investors: Approximately 47.52% of shares.
- Note: The absence of Qualified Institutional Buyers (QIBs) suggests that big investors or those with larger amounts may have more opportunities in HNI categories.
Here are the important dates for the Meri Step Healthcare IPO:
- IPO Open: August 8th
- IPO Close: August 12th
- Allotment Finalization: August 13th
- Refund Initiation (if no allotment): August 14th
- Shares Credited to Demat Account: August 14th
- Listing Date (on NSE SME): August 18th
Day 1 Subscription Figures: A Positive Start
The first day’s response to the IPO was encouraging:
- HNI Category: Subscribed 2.49 times, with bids for 44.31 lakh equity shares against 1.76 lakh shares offered, totaling ₹19 crore.
- Individual Investor (Retail) Category: Subscribed 16.46 times, with bids for 2.92 crore equity shares against 17.79 lakh shares offered, totaling ₹125-126 crore.
- Overall Subscription: The IPO was subscribed 9.48 times by the end of Day 1, with total bids for 3.37 crore equity shares against 35.50 lakh shares offered, amounting to ₹144 crore.
Grey Market Premium and Listing Gain Potential
The Grey Market Premium (GMP) for Meri Step Healthcare IPO is currently ₹18. With the upper price band at ₹43, the expected listing price is ₹61 per share. This translates to an estimated listing gain of 42%, or approximately ₹54,000 per lot. However, it’s advisable to wait for the GMP to exceed 50% and for the IPO to be subscribed 30-40 times by the second or third day before making an application decision.
Final Verdict and Next Steps
Meri Step Healthcare IPO shows promising financial health, strong fundamental metrics, and an attractive valuation compared to its peers. While the initial subscription figures are positive, a cautious approach is recommended. Evaluate your risk-to-reward ratio before applying. Further updates, including the Day 2 subscription figures, will be shared via video and on our Telegram group. Feel free to comment with any questions or doubts.
