Aakaar Medical Technologies Ltd IPO
Status:
Overview
IPO date
20 Jun 2025 to 24 Jun 2025
Face value
₹ 0 per share
Price
₹ 68 to ₹72 per share
Issue Size
3,750,400 shares
(aggregating up to ₹ 27 Cr)
(aggregating up to ₹ 27 Cr)
Allotment Date
25 Jun 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Objectives of Aakaar Medical Technologies Ltd IPO
Aakaar Medical Technologies Ltd IPO Strategy
About Aakaar Medical Technologies Ltd
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Strengths vs Risks of Aakaar Medical Technologies Ltd
Know the pros & cons
Strengths
Experienced management and leadership teams.- Diversified customer base.
- Diversified product base.
- Pan India reach through its consignment sales partner.
Risks
- A substantial portion of the revenue is derived from sale of imported third party manufactured brands which exposes it to various risk.
- The company relies on third party contract manufacturers (domestic and international) & loan licensing partners for manufacturing products & devices which of the sell under its own Brand. the company dependence on third-party manufacturers for the manufacturing of all the products subjects it to certain risks, which, if realized, could adversely affect its business, results of operations, cash flows and financial condition.
- The company registered office is situated in Maharashtra and the derive a significant portion of the company revenue from state of Maharashtra and Karnataka, making it vulnerable to geographical concentration risk.
- The company has appointed Parekh Integrated Services Private Limited (PISPL) as a CSA agent for storing, delivering and distributing its products & recovery of dues. Any non-performance or breach of covenants of the CSA agreement executed with PISPL may adversely affect its business operations, profitability and cash flows.
- Failures to identify and effectively respond to changing consumer preferences, consumer behaviour and spending patterns or changing beauty and personal care trends in a timely manner, may adversely affect the demand for the company products, causing its business, results of operations, financial condition and cash flows.
- The company may not be able to accurately manage the company inventory, this may adversely affect its business, financial condition and results of operations and reputation.
- The Company has reported negative cash flow in the past. Any negative cash flows in the future would adversely affect the cash flow requirements, which may adversely affect the company ability to operate the company business and implement its growth plans, thereby affecting its financial condition.
- As the market for aesthetic treatments grows, the number of clinics and practitioners offering these services is increasing in India which may increase competition among clinics leading to competitive pricing of products. Any change in product pricing will impact revenue and profitability of the business.
- Its may be subject to unfair competitive or trade practices, like the availability of counterfeit injectables, skincare products, and aesthetic devices, which may reduce the company sales and harm its brands, adversely affecting the company business, financial condition, cash flows and results of operations.
- Invasive and non-invasive procedures alike carry risks, including infections, scarring, and unintended aesthetic outcomes which may deter the patients from seeking treatments and impact the demand for the products and devices used for these treatments.
- The company has contingent liabilities and its financial condition could be adversely affected if these contingent liabilities materialize.
- Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
- The company inability to manage its growth may disrupt of the business and reduce the company profitability.
- The company relies extensively on the operational support systems, including its CSA partners information technology systems/software in managing the company supply chain, procurement process, logistics and other integral parts of its business. Failure of the system/to protect the data/seamless transfer of data from the CSA partner to the Company, could adversely affect its business, financial conditions and results of operations.
- The success of its business depends substantially on the management team and operational workforce. the company inability to retain them could adversely affect the businesses.
- The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.
- Any product defect issues or failure by the suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
- Absence of a formal agreement with the company suppliers may increase exposure to litigation risks, especially if contractual obligations, product warranties, or marketing rights are contested.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company operations.
- In addition to the existing indebtedness for the existing operations, Its may incur further indebtedness during the course of business. The cannot assure that we would be able to service the company existing and/ or additional indebtedness.
- The Company, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The Company intends to utilise a portion of the Net Proceeds of the Issue towards the working capital requirements of the Company which are based on certain assumptions and estimates and has not been appraised by any bank or financial institution.
- The Company requires significant amount of working capital for a continuing growth. Its inability to meet our working capital requirements may adversely affect the company results of operations.
- The company is exposed to credit risk from its customers and the recoverability of the trade receivables is subject to uncertainties.
- The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future on an arm's length basis, and there can be no assurance that its could not have achieved more favourable terms if such transactions had not been entered into with related parties.
- The information in the Industry Section is derived from publicaly available information and the company has commissioned and paid for an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data provided in the same and such data has not been independently verified by it.
- The company has availed unsecured loans which is repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
- The company funding requirements and the proposed deployment of Net Proceeds has not been appraised by any bank or financial institution or any other independent agency and the management will have broad discretion over the use of the Net Proceeds.
- There may have been certain instances of non-compliances with respect to certain corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties.
- The company management will have broad discretion in how its apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- The issuer company does not have any comparable Indian listed peers & the peers which have been disclosed in the draft red herring prospectus may have a different business model as compared to the company.
- There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective.
- Its may be unable to sufficiently obtain, maintain, protect, or enforce the intellectual property and other proprietary rights.
- Its Promoter & Promoter Group have extended personal guarantees and personal properties as collateral security with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- Its Promoter and Promoter Group member is interested in the Company in the form of rental income from leasing of registered office at Andheri.
- The company Registered Office and godowns/ warehouses is not owned by the Company, In the event we lose such rights, its may suffer a disruption in the operations or has to pay higher charges, which could have an adverse effect on its business, prospects, results of operations and financial condition.
- The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.
- The Company has during the preceding one year from the date of the Draft Red Herring Prospectus have allotted Equity Shares at a price which is lower than the Issue Price.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- The company insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect us from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- If the company is unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.
- None of the Directors of the Company have experience of being a director of a public listed company.
- The company future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- Its ability to pay dividends in the future will depend upon the future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company financing arrangements.
- The company could be harmed by employee misconduct or errors that is difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the Promoter Group may adversely affect the trading price of the Equity Shares.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the Equity Shares, independent of the operating results.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
- We may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.
- Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- The Equity Shares has never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- The Issue price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue and the market price of the Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- A substantial portion of the revenue is derived from sale of imported third party manufactured brands which exposes it to various risk.
- Its Business could be affected by volatility in the price of raw materials, utilities and natural resources and transportation costs etc. which if realized, could adversely affect its business, results of operations, cash flows and financial condition.
- The company relies on third party contract manufacturers (domestic and international) & loan licensing partners for manufacturing products & devices which the company sell under its own Brand and any factors like Continuity of Supply, Financial Stability of Manufacturers, trade secret protection, safety concerns, quality control will affect its operations, business cash flows and financial condition.
- Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
- The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- Its registered office is situated in Maharashtra and the company derives a significant portion of its revenue from state of Maharashtra and Karnataka, making it vulnerable to geographical concentration risk.
- The company has appointed Parekh Integrated Services Private Limited (PISPL) as a CSA agent for storing, delivering and distributing its products & recovery of dues. Any non-performance or breach of covenants of the CSA agreement executed with PISPL may adversely affect its business operations, profitability and cash flows.
- The Company has reported negative cash flow in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect its ability to operate our business and implement its growth plans, thereby affecting its financial condition.
- Its business is subject to seasonal variations that could result in fluctuations in the company results of operations in a single financial year over different quarter.
- Any product defect issues or failures by its suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
- Failures to identify and effectively respond to changing consumer preferences, consumer behaviour and spending patterns or changing beauty and personal care trends in a timely manner, may adversely affect the demand for its products, causing the company business, results of operations, financial condition and cash flows.
- Its may not be able to accurately manage the company inventory, this may adversely affect its business, financial condition and results of operations and reputation.
- The Company has reported negative cash flow in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and implement the company growth plans, thereby affecting its financial condition.
- As the market for aesthetic treatments grows, the number of clinics and practitioners offering these services is increasing in India which may increase competition among clinics leading to competitive pricing of products. Any change in product pricing will impact revenue and profitability of the business.
- Its may be subject to unfair competitive or trade practices, like the availability of counterfeit injectables, skincare products, and aesthetic devices, which may reduce its sales and harm the company brands, adversely affecting its business, financial condition, cash flows and results of operations.
- Invasive and non-invasive procedures alike carry risks, including infections, scarring, and unintended aesthetic outcomes which may deter the patients from seeking treatments and impact the demand for the products and devices used for these treatments.
- The company has contingent liabilities and its financial condition could be adversely affected if these contingent liabilities materialize.
- The company faces competition from both domestic and international companies, which may adversely impact its market position, growth prospects, and profitability.
- Unanticipated Delays in Product Implementation/Product Launch and Cost Overruns Could Adversely Affect its Business, Financial Performance, and Competitive Position.
- Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
- Its inability to manage the company growth may disrupt its business and reduce its profitability.
- The company relies extensively on its operational support systems, including its CSA partners information technology systems/software in managing its supply chain, procurement process, logistics and other integral parts of its business. Failures of the system/to protect the data/seamless transfer of data from the CSA partner to the Company, could adversely affect its business, financial conditions and results of operations.
- The success of its business depends substantially on the company management team and operational workforce. Its inability to retain them could adversely affect its businesses.
- The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.
- Any product defect issues or failures by its suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
- Absence of a formal agreement with its suppliers may increase exposure to litigation risks, especially if contractual obligations, product warranties, or marketing rights are contested.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that the company would be able to service its existing and/ or additional indebtedness.
- The Company, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The Company intends to utilise a portion of the Net Proceeds of the Issue towards the working capital requirements of the Company which are based on certain assumptions and estimates and has not been appraised by any bank or financial institution.
- The company is exposed to credit risk from its customers and the recoverability of its trade receivables is subject to uncertainties.
- The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future on an arm's length basis, and there can be no assurance that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties.
- The information in the Industry Section is derived from publicaly available information and the company has commissioned and paid for an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data provided in the same and such data has not been independently verified by it.
- The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
- Its funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
- There may have been certain instances of non-compliances with respect to certain corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties.
- Its management will have broad discretion in how the company apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- The issuer company does not have any comparable Indian listed peers & the peers which have been disclosed in the red herring prospectus may have a different business model as compared to the company.
- The company has not obtained credit ratings and may not be able to access capital to finance its operations and future growth of its business, which could have a material adverse effect on its business, results of operations, financial condition, cash flows, and future prospects.
- Its insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect it from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- Increasing employee compensation in India may erode some of its competitive advantage and may reduce its profit margins, which may have a material adverse effect on its business, financial condition, cash flows and results of operations.
- There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective.
- Its may be unable to sufficiently obtain, maintain, protect, or enforce the company intellectual property and other proprietary rights.
- Its Promoter & Promoter Group have extended personal guarantees and personal properties as collateral security with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- Its Promoter and Promoter Group member is interested in the Company in the form of rental income from leasing of registered office at Andheri.
- Its Registered Office and godowns/ warehouses are not owned by the Company, In the event the company lose such rights, its may suffer a disruption in the company operations or have to pay higher charges, which could have an adverse effect on its business, prospects, results of operations and financial condition.
- The average cost of acquisition of Equity Shares by its Promoter may be lower than the Issue Price.
- The Company has during the preceding one year from the date of the Red Herring Prospectus have allotted Equity Shares at a price which is lower than the Issue Price.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- Its insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect the company from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- If the company is unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.
- None of the Directors of the Company have experience of being a director of a public listed company.
- Its future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- Its ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of its Equity Shares, independent of the company operating results.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
- Its may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.
- Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- The Issue price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
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The IPO opens on 20 Jun 2025 & closes on 24 Jun 2025.
Aakaar Medical Technologies Limited was originally incorporated as Aakaar Medical Technologies Private Limited', a private limited company dated June 20, 2013 issued by the Registrar of Companies, Mumbai. Subsequently, Company status was converted into a public limited company and a fresh certificate of incorporation dated November 18, 2024 was issued by the Registrar of Companies, Mumbai, recording the change in the name of Company to Aakaar Medical Technologies Limited'.
Incorporated in 2013, Aakaar Medicals are a medical aesthetic company dealing in a wide range of aesthetics & specialised cosmetic products & devices. The Company supply its products & devices primarily to aesthetic physicians such as dermatologists, plastic surgeons, aesthetic physicians who sell these products to end consumers as well as use certain device consumables as part of their treatments. The product range includes both Own brands (domestically manufactured products & internationally manufactured devices) and Imported Brands (distribution of imported brands) from countries such as Korea, Spain, Italy, and Austria.
In October 2016, Company entered into licensing, marketing and distribution agreement with Medytox Inc., South Korea for launch of Siax. In June 2017, it launched own brands Tubelite; launched Balback brand in July, 2017, launched Lytec brand in December 2017; launched Etrelume brand in Oct' 22; launched Swyada brand in August, 2023; launched Exoluxe and DRS1512 brands in August, 2024; launched Eoluxe in September, 2024.
Company has launched the initial public offer by issuing 37,50,400 equity shares of Rs 10 each by raising funds aggregating to Rs 27 Crore in June, 2025 through fresh issue.
Aakaar Medical Technologies Ltd IPO will close on 24 Jun 2025.
- Experienced management and leadership teams.
- Diversified customer base.
- Diversified product base.
- Pan India reach through its consignment sales partner.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Dilip Ramesh Meswani | 6825000 | 65.48 | 6825000 | 48.16 |
| 2 | Bindi Dilip Meswani | 1820000 | 17.46 | 1820000 | 12.84 |
| 3 | Abhash Dilip Meswani | 354900 | 3.41 | 354900 | 2.5 |
| 4 | Milouni Dilip Meswani | 210844 | 2.02 | 210844 | 1.49 |
| 5 | Sharda Ramesh Meswani | 285769 | 2.74 | 285769 | 2.02 |
- A substantial portion of the revenue is derived from sale of imported third party manufactured brands which exposes it to various risk.
- The company relies on third party contract manufacturers (domestic and international) & loan licensing partners for manufacturing products & devices which of the sell under its own Brand. the company dependence on third-party manufacturers for the manufacturing of all the products subjects it to certain risks, which, if realized, could adversely affect its business, results of operations, cash flows and financial condition.
- The company registered office is situated in Maharashtra and the derive a significant portion of the company revenue from state of Maharashtra and Karnataka, making it vulnerable to geographical concentration risk.
- The company has appointed Parekh Integrated Services Private Limited (PISPL) as a CSA agent for storing, delivering and distributing its products & recovery of dues. Any non-performance or breach of covenants of the CSA agreement executed with PISPL may adversely affect its business operations, profitability and cash flows.
- Failures to identify and effectively respond to changing consumer preferences, consumer behaviour and spending patterns or changing beauty and personal care trends in a timely manner, may adversely affect the demand for the company products, causing its business, results of operations, financial condition and cash flows.
- The company may not be able to accurately manage the company inventory, this may adversely affect its business, financial condition and results of operations and reputation.
- The Company has reported negative cash flow in the past. Any negative cash flows in the future would adversely affect the cash flow requirements, which may adversely affect the company ability to operate the company business and implement its growth plans, thereby affecting its financial condition.
- As the market for aesthetic treatments grows, the number of clinics and practitioners offering these services is increasing in India which may increase competition among clinics leading to competitive pricing of products. Any change in product pricing will impact revenue and profitability of the business.
- Its may be subject to unfair competitive or trade practices, like the availability of counterfeit injectables, skincare products, and aesthetic devices, which may reduce the company sales and harm its brands, adversely affecting the company business, financial condition, cash flows and results of operations.
- Invasive and non-invasive procedures alike carry risks, including infections, scarring, and unintended aesthetic outcomes which may deter the patients from seeking treatments and impact the demand for the products and devices used for these treatments.
- The company has contingent liabilities and its financial condition could be adversely affected if these contingent liabilities materialize.
- Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
- The company inability to manage its growth may disrupt of the business and reduce the company profitability.
- The company relies extensively on the operational support systems, including its CSA partners information technology systems/software in managing the company supply chain, procurement process, logistics and other integral parts of its business. Failure of the system/to protect the data/seamless transfer of data from the CSA partner to the Company, could adversely affect its business, financial conditions and results of operations.
- The success of its business depends substantially on the management team and operational workforce. the company inability to retain them could adversely affect the businesses.
- The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.
- Any product defect issues or failure by the suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
- Absence of a formal agreement with the company suppliers may increase exposure to litigation risks, especially if contractual obligations, product warranties, or marketing rights are contested.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company operations.
- In addition to the existing indebtedness for the existing operations, Its may incur further indebtedness during the course of business. The cannot assure that we would be able to service the company existing and/ or additional indebtedness.
- The Company, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The Company intends to utilise a portion of the Net Proceeds of the Issue towards the working capital requirements of the Company which are based on certain assumptions and estimates and has not been appraised by any bank or financial institution.
- The Company requires significant amount of working capital for a continuing growth. Its inability to meet our working capital requirements may adversely affect the company results of operations.
- The company is exposed to credit risk from its customers and the recoverability of the trade receivables is subject to uncertainties.
- The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future on an arm's length basis, and there can be no assurance that its could not have achieved more favourable terms if such transactions had not been entered into with related parties.
- The information in the Industry Section is derived from publicaly available information and the company has commissioned and paid for an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data provided in the same and such data has not been independently verified by it.
- The company has availed unsecured loans which is repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
- The company funding requirements and the proposed deployment of Net Proceeds has not been appraised by any bank or financial institution or any other independent agency and the management will have broad discretion over the use of the Net Proceeds.
- There may have been certain instances of non-compliances with respect to certain corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties.
- The company management will have broad discretion in how its apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- The issuer company does not have any comparable Indian listed peers & the peers which have been disclosed in the draft red herring prospectus may have a different business model as compared to the company.
- There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective.
- Its may be unable to sufficiently obtain, maintain, protect, or enforce the intellectual property and other proprietary rights.
- Its Promoter & Promoter Group have extended personal guarantees and personal properties as collateral security with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- Its Promoter and Promoter Group member is interested in the Company in the form of rental income from leasing of registered office at Andheri.
- The company Registered Office and godowns/ warehouses is not owned by the Company, In the event we lose such rights, its may suffer a disruption in the operations or has to pay higher charges, which could have an adverse effect on its business, prospects, results of operations and financial condition.
- The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.
- The Company has during the preceding one year from the date of the Draft Red Herring Prospectus have allotted Equity Shares at a price which is lower than the Issue Price.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- The company insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect us from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- If the company is unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.
- None of the Directors of the Company have experience of being a director of a public listed company.
- The company future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- Its ability to pay dividends in the future will depend upon the future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company financing arrangements.
- The company could be harmed by employee misconduct or errors that is difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the Promoter Group may adversely affect the trading price of the Equity Shares.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the Equity Shares, independent of the operating results.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
- We may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.
- Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- The Equity Shares has never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- The Issue price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue and the market price of the Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- A substantial portion of the revenue is derived from sale of imported third party manufactured brands which exposes it to various risk.
- Its Business could be affected by volatility in the price of raw materials, utilities and natural resources and transportation costs etc. which if realized, could adversely affect its business, results of operations, cash flows and financial condition.
- The company relies on third party contract manufacturers (domestic and international) & loan licensing partners for manufacturing products & devices which the company sell under its own Brand and any factors like Continuity of Supply, Financial Stability of Manufacturers, trade secret protection, safety concerns, quality control will affect its operations, business cash flows and financial condition.
- Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
- The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- Its registered office is situated in Maharashtra and the company derives a significant portion of its revenue from state of Maharashtra and Karnataka, making it vulnerable to geographical concentration risk.
- The company has appointed Parekh Integrated Services Private Limited (PISPL) as a CSA agent for storing, delivering and distributing its products & recovery of dues. Any non-performance or breach of covenants of the CSA agreement executed with PISPL may adversely affect its business operations, profitability and cash flows.
- The Company has reported negative cash flow in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect its ability to operate our business and implement its growth plans, thereby affecting its financial condition.
- Its business is subject to seasonal variations that could result in fluctuations in the company results of operations in a single financial year over different quarter.
- Any product defect issues or failures by its suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
- Failures to identify and effectively respond to changing consumer preferences, consumer behaviour and spending patterns or changing beauty and personal care trends in a timely manner, may adversely affect the demand for its products, causing the company business, results of operations, financial condition and cash flows.
- Its may not be able to accurately manage the company inventory, this may adversely affect its business, financial condition and results of operations and reputation.
- The Company has reported negative cash flow in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and implement the company growth plans, thereby affecting its financial condition.
- As the market for aesthetic treatments grows, the number of clinics and practitioners offering these services is increasing in India which may increase competition among clinics leading to competitive pricing of products. Any change in product pricing will impact revenue and profitability of the business.
- Its may be subject to unfair competitive or trade practices, like the availability of counterfeit injectables, skincare products, and aesthetic devices, which may reduce its sales and harm the company brands, adversely affecting its business, financial condition, cash flows and results of operations.
- Invasive and non-invasive procedures alike carry risks, including infections, scarring, and unintended aesthetic outcomes which may deter the patients from seeking treatments and impact the demand for the products and devices used for these treatments.
- The company has contingent liabilities and its financial condition could be adversely affected if these contingent liabilities materialize.
- The company faces competition from both domestic and international companies, which may adversely impact its market position, growth prospects, and profitability.
- Unanticipated Delays in Product Implementation/Product Launch and Cost Overruns Could Adversely Affect its Business, Financial Performance, and Competitive Position.
- Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.
- Its inability to manage the company growth may disrupt its business and reduce its profitability.
- The company relies extensively on its operational support systems, including its CSA partners information technology systems/software in managing its supply chain, procurement process, logistics and other integral parts of its business. Failures of the system/to protect the data/seamless transfer of data from the CSA partner to the Company, could adversely affect its business, financial conditions and results of operations.
- The success of its business depends substantially on the company management team and operational workforce. Its inability to retain them could adversely affect its businesses.
- The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.
- Any product defect issues or failures by its suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
- Absence of a formal agreement with its suppliers may increase exposure to litigation risks, especially if contractual obligations, product warranties, or marketing rights are contested.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that the company would be able to service its existing and/ or additional indebtedness.
- The Company, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The Company intends to utilise a portion of the Net Proceeds of the Issue towards the working capital requirements of the Company which are based on certain assumptions and estimates and has not been appraised by any bank or financial institution.
- The company is exposed to credit risk from its customers and the recoverability of its trade receivables is subject to uncertainties.
- The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future on an arm's length basis, and there can be no assurance that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties.
- The information in the Industry Section is derived from publicaly available information and the company has commissioned and paid for an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data provided in the same and such data has not been independently verified by it.
- The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
- Its funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
- There may have been certain instances of non-compliances with respect to certain corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties.
- Its management will have broad discretion in how the company apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- The issuer company does not have any comparable Indian listed peers & the peers which have been disclosed in the red herring prospectus may have a different business model as compared to the company.
- The company has not obtained credit ratings and may not be able to access capital to finance its operations and future growth of its business, which could have a material adverse effect on its business, results of operations, financial condition, cash flows, and future prospects.
- Its insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect it from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- Increasing employee compensation in India may erode some of its competitive advantage and may reduce its profit margins, which may have a material adverse effect on its business, financial condition, cash flows and results of operations.
- There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective.
- Its may be unable to sufficiently obtain, maintain, protect, or enforce the company intellectual property and other proprietary rights.
- Its Promoter & Promoter Group have extended personal guarantees and personal properties as collateral security with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- Its Promoter and Promoter Group member is interested in the Company in the form of rental income from leasing of registered office at Andheri.
- Its Registered Office and godowns/ warehouses are not owned by the Company, In the event the company lose such rights, its may suffer a disruption in the company operations or have to pay higher charges, which could have an adverse effect on its business, prospects, results of operations and financial condition.
- The average cost of acquisition of Equity Shares by its Promoter may be lower than the Issue Price.
- The Company has during the preceding one year from the date of the Red Herring Prospectus have allotted Equity Shares at a price which is lower than the Issue Price.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- Its insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect the company from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- If the company is unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.
- None of the Directors of the Company have experience of being a director of a public listed company.
- Its future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- Its ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of its Equity Shares, independent of the company operating results.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
- Its may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.
- Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- The Issue price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
The Issue type of Aakaar Medical Technologies Ltd is Book Building - SME.
The minimum application for shares of Aakaar Medical Technologies Ltd is 1600.
The total shares issue of Aakaar Medical Technologies Ltd is 3750400.
Initial public offer of up to 37,50,400 equity shares of face value Rs. 10/- each (the "Equity Shares") of Aakaar Medical Technologies Limited' ("the Company" or the "issuer") for cash at a price of Rs. 72 per equity share (including securities premium of Rs. 62 per equity share) ("Issue Price"), aggregating up to Rs. 27 crores (the "Issue") of which 1,88,800 equity shares aggregating to Rs. 1.36 crores (Constituting up to 1.33 % of the post-issue paid-up equity share capital of the Company) will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.46% and 25.13 % respectively of the post-issue paid-up equity share capital of the company.