Docmode Health Tech SME IPO: Check price band, GMP, financials, risks and listing date

Docmode Health Technologies IPO:

The Rs 6.71-crore public issue of Docmode Health Technologies will open for subscription on January 25 and close on 30th.

The company provides integrated learning solutions for healthcare professionals and learners worldwide through online and offline learning models.

Issue size The offer is entirely a fresh issue of 8.49 lakh shares worth Rs 6.71 crore.

Price band The price for the offer has been fixed at Rs 79 per share.

Lot size Investors can bid for a minimum of 1,600 equity shares and in multiples thereof.

Financial performance Revenue from operations came in at Rs 32.87 crore in FY23 as against Rs 12.42 crore in FY22. The net profit rose to Rs 1.94 crore from Rs 92 lakh in the same period. The debt-to-equity ratio stood at 1.68x in FY23.

Objectives The IPO proceeds will be used to purchase IT infrastructure and operating systems and meet incremental working capital requirements. The remaining funds will be used for general corporate purposes.

Promoters of the company Paulson Paul Thazhathedath and Hans Albert Lewis are the promoters of the company.

Lead managers Fedex Securities is the book-running lead manager of the Docmode Health Technologies IPO, while Bigshare Services is the registrar. The market maker for the issue is Rikhav Securities.

Key risks (i) The business of providing professional medical learning is a competitive market that has low barriers of entry. New competitors may easily enter and compete in this market which could decrease the market share and compel the company to reduce course fees or provide higher discounts.

(ii) Subsidiary CCME World Services has been incurring losses for the past three years.

Grey market premium The stock was commanding a 12 percent premium in the grey market, which is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors typically track the grey market premium (GMP), which can fluctuate wildly, to get an indication of the listing price.

Listing date Docmode Health Technologies will be listed on the NSE SME platform with the tentative listing date fixed on February 2.