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Medicap Healthcare Limited has proactively filed its Draft Red Herring Prospectus (DRHP) with SEBI as of September 21, 2025, signaling its intention to raise up to Rs 240 crore through a fresh issue of equity shares. This upcoming initial public offering will mark a significant milestone for the Vadodara-based pharmaceutical packaging company, which plans to list its shares on both the National Stock Exchange (NSE) and BSE, reflecting a strategic step to fund growth and optimize its capital structure.
Key Highlights and Strategic Objectives:
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T:he entirety of the capital raised, estimated at Rs 240 crore, will be sourced through fresh share issuance, reinforcing Medicap Healthcare's commitment to expansion-driven financing without dilution from promoter share sales.
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Proceeds allocation includes Rs 74.37 crore earmarked for enhancing production capabilities via acquisition of advanced plant and machinery for the current manufacturing unit.
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Rs 32.9 crore is reserved for repayment or prepayment of select borrowings, underscoring the company’s focus on strengthening its balance sheet and reducing financial leverage.
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A significant Rs 52.8 crore will be invested into Medicap's subsidiary, KASR Healthcare Pvt Ltd, primarily for debt repayment or prepayment, facilitating subsidiary-level financial health.
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An additional portion of the funds will support ongoing general corporate purposes, ensuring flexible resource deployment to seize market opportunities.
Company Overview and Financial Performance
Founded in 2014 and converted to a public limited company in 2017, Medicap Healthcare operates a 6,732 sq. meter facility catering to both domestic (80%) and international (20%) clients. The firm specializes in pharmaceutical packaging, a critical segment providing tailored solutions for drug manufacturers.
Financially, the company posted a 6.1% revenue uptick in FY 2025 with Rs 108.3 crore, up from Rs 102.11 crore in FY 2024, coupled with a 2.2% rise in profit to Rs 32.78 crore. These metrics reflect steady growth and robust operational execution in a competitive sector.
Listing Prospects and Market Positioning
Medicap’s decision to pursue public listing on both NSE and BSE reflects its ambition to enhance market visibility and liquidity for stakeholders. The fresh equity infusion is timed to capitalize on the growth trajectory of healthcare packaging—a sector benefiting from rising pharmaceutical production and export demand in India.
Aryaman Financial Services Ltd. will lead the IPO management as the book-running lead manager, while Kfin Technologies Ltd. is designated as the registrar, overseeing investor services and allotment processes.
This IPO positions Medicap Healthcare as a compelling investment for market participants eyeing long-term value creation in a niche healthcare industry segment executed with disciplined financial stewardship.
Source: NDTV Profit
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