Hemant Surgical Industries
Book Building issueSME₹24.84 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹24.84 Cr
1 lot at cut-off
₹1,44,000
Lot size
1,600shares
Open
24 May 2023
Close
26 May 2023
Allotment
31 May 2023
Listing
05 Jun 2023
Listing performance
Issue price
₹90
Listed at
₹171
Listing-day close
₹179.55
Latest price
₹570
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
+533.33%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 May 2023 – 26 May 2023
- Listing date
- 05 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹90 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹24.84 Cr
- Market cap at offer price
- ₹93.96 Cr
- Promoter holding
- 100.00% → 73.56% pre-issue → post-issue
- ISIN
- INE0GYI01028
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 502, 5th Floor, Ecstacy Business Park, Co-Op Society Limited, J.S.D.Road, Mulund (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 7,82,400 | — | — |
| Market maker | 1,44,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹90
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,44,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,88,000 |
| S-HNI (max) | 6 | 9,600 | ₹8,64,000 |
| B-HNI (min) | 7 | 11,200 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
7,82,400
Anchor portion
₹7.04 Cr
at ₹90 per share
Valuation and performance
Valuation at offer price
₹90 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.26 | — |
| P/E (×) | 8.77 | — |
| Market cap | — | ₹93.96 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 32.42%
- ROCE
- 37.98%
- Debt / equity
- 0.30
- PAT margin
- 7.01%
- NAV per share
- ₹31.70
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Hemant Surgical Industries
Hemant Surgical Industries Limited (HSIL), incorporated in 1989 and converted to a public company in 1994, is engaged in the business of manufacturing, importing, assembling and marketing a comprehensive portfolio of medical equipment and disposables. The company's product offerings cover a wide spectrum required for renal care, cardiovascular disease, respiratory disease, critical care and radiology, and surgical disposables. The company manufactures some products indigenously and imports others from countries including Japan, China, France and Australia, which are further processed in its assembly units. The company operates one manufacturing unit at Achhad Industrial Estate and two assembly units at Atgaon and Bhiwandi in Mumbai.
Company Analysis
from RHPHemant Surgical Industries Limited manufactures, imports, assembles and markets medical equipment and disposables for renal care, cardiovascular disease, respiratory disease, critical care, radiology and surgical applications.
Hemant Surgical Industries Limited (HSIL), incorporated in 1989 and converted to a public company in 1994, is engaged in the business of manufacturing, importing, assembling and marketing a comprehensive portfolio of medical equipment and disposables. The company's product offerings cover a wide spectrum required for renal care, cardiovascular disease, respiratory disease, critical care and radiology, and surgical disposables. The company manufactures some products indigenously and imports others from countries including Japan, China, France and Australia, which are further processed in its assembly units. The company operates one manufacturing unit at Achhad Industrial Estate and two assembly units at Atgaon and Bhiwandi in Mumbai.
Medical Devices & Equipment ManufacturingMedical DisposablesHealthcare ProductsRenal Care EquipmentCardiovascular Care EquipmentRespiratory Care EquipmentCritical Care EquipmentRadiology EquipmentSurgical Disposables
Objects of the Issue
- Funding Capital Expenditure towards installation of additional plant and machinery ₹751.26 lakhs p.22
- Funding to meet working capital requirements ₹1,000.00 lakhs p.22
- General Corporate Purpose p.22
- Funding Capital Expenditure towards installation of additional plant and machinery ₹751.26 Lakhs p.76
- Funding to meet working capital requirements ₹1000.00 Lakhs p.78
- General Corporate Purpose p.79
- Issue expenses p.79
- Not specified in this part of the document
Issue Structure
- Total Issue
- ₹ [●] Lakhs (27,60,000 Equity Shares including Market Maker Reservation Portion)
- Fresh Issue
- 27,60,000 Equity Shares of face value of ₹10 each aggregating to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹ [●] (Floor Price) to ₹ [●] (Cap Price)
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through manufacturing, importing, assembling and marketing medical equipment and disposables. It sources raw materials and components from third-party suppliers (top 10 suppliers accounted for 80.02% of purchases in FY 2023), manufactures and assembles products at its facilities, and distributes them through direct sales to end-user customers (hospitals, diagnostic centres, independent doctors) and through a network of distributors and dealers.
Business Segments
Medical equipment and disposables for renal care treatment
Medical equipment and disposables for cardiovascular disease treatment
Medical equipment and disposables for respiratory disease treatment
Medical equipment and disposables for critical care and radiology applications
Surgical disposable products
Medical tape products imported from JMS Co. Ltd., Japan
Manufactures, imports and sells dialysis machines, dialysis solutions (acidic and bicarbonate in powder and fluid form), dialyzers/artificial kidneys under brand names Dora Dialyzer, JMS Dialyzer, Aero Dialyzer, and provides maintenance and operation services for dialysis centres
Manufactures and sells ECG machines and ECG electrodes under the 'Aero Plus' brand name for recording heart's electrical activity
Assembles and sells nebulizers and oxygen concentrators under the 'Aero Plus' brand for respiratory care
Assembles and sells ultrasound machines, paramonitors, ventilators, air mattresses, digital thermometers, and pulse oximeters; imports and distributes critical care radiology products from Zoncare Bio-medical Electronics Co., Ltd.
Imports and assembles intravenous infusion sets (under JMS brand name through technical collaboration with JMS Singapore Pte. Ltd.) and processes imported Foley catheters from China under the 'Safecath' brand name
Manufactures hemodialysis fluid concentrates in liquid and powder forms, cold and hot sterilants (Diaclean brand), and sells dialysis chairs and related equipment; also imports and distributes hemodialysis machines and dialyzers
Manufactures and sells nebulizers (Aero Plus brand) used for treating respiratory diseases including cystic fibrosis and asthma
Imports and distributes paramonitors (patient monitors), ultrasound machines (color Doppler), and ventilators (Aero V9 Universal Ventilator brand)
Manufactures and distributes surgical tapes (Meditape via exclusive distribution from JMS), intravenous infusion sets (JMS brand via technical collaboration), scalp vein sets, Foley catheters (Safecath brand), and 3-ply face masks (Aero brand)
Manufactures and sells digital thermometers (Aero Digital Thermometer brand) and ECG electrodes; also sells ICU beds (Aero 5 function automatic electric hospital bed)
Manufacturing, importing, assembling and marketing of medical equipment and disposables for renal care, cardiovascular disease, respiratory disease, critical care, radiology and surgical disposables
SWOT Analysis
Strengths
- • Comprehensive medical device portfolio across multiple therapeutic areas(p.22)
- • Mix of indigenous manufacturing and strategic imports from established markets(p.22)
- • Revenue growth trajectory with improving profitability(p.24)
- • Strong cash position and net worth buildup(p.24)
- • Diversified product portfolio across renal care, cardiovascular, respiratory, critical care and surgical disposables(p.102)
- • Strong established brand reputation and long-term customer relationships(p.103)
- • ISO certified quality management systems demonstrating commitment to manufacturing standards(p.103)
- • Experienced management team with 15-35 years of industry expertise(p.103)
- • Strong financial performance with 35.14% CAGR in revenue and improving margins(p.104)
- • Established manufacturing and assembly operations with diverse product portfolio(p.107)
- • Strong revenue growth trajectory with 83% increase over three years(p.108)
- • Multiple registered trademarks providing brand recognition(p.114)
- • Exclusive distribution and technical collaboration agreements with established international partners(p.124)
- • Consistent profitability with growing margins(p.148)
- • Production capacity expansion and increasing capacity utilization(p.114)
- • Comprehensive product portfolio across multiple therapeutic areas(p.186)
- • Mix of indigenous manufacturing and assembly capabilities(p.186)
- • Established long-standing international partnerships and distribution agreements(p.186)
- • Strong financial performance with growing profitability(p.187)
- • ISO and quality certifications for manufacturing facilities(p.186)
- • Experienced and long-tenured promoter with industry expertise(p.186)
- • Award recognition from international partners(p.187)
- • Positive net worth and strong equity base(p.187)
Weaknesses
- • Extreme dependence on single imported product line(p.31)
- • High concentration in top customer base(p.29)
- • Significant dependence on limited supplier base(p.29)
- • Heavy reliance on import purchases with limited domestic sourcing(p.31)
- • Manufacturing capacity underutilization(p.40)
- • Promoters previously disqualified from directorship(p.36)
- • Regulatory non-compliance and missing statutory records(p.33)
- • Significant contingent liabilities(p.37)
- • Trademark not registered(p.37)
- • Significant operational cash outflow and negative working capital swing in FY2023(p.48)
- • High finance costs relative to profit indicating debt dependence(p.48)
- • Concentrated promoter shareholding at 70.53% post-IPO limiting institutional ownership(p.72)
- • Heavy reliance on promoter shareholding with limited public ownership(p.139)
- • Significant financial leverage with substantial debt obligations(p.147)
- • Trade payables representing significant portion of current liabilities(p.147)
- • High proportion of revenue dependent on imported and traded products(p.108)
- • Contingent liabilities related to customs and tax matters(p.174)
- • Limited geographic diversification with concentration in India(p.114)
- • High customer concentration risk(p.192)
- • Significant outstanding debt obligations(p.176)
- • Financial covenants and restrictions on borrower operations(p.183)
- • Litigation involving promoter and related parties(p.199)
- • Multiple ongoing regulatory and criminal proceedings against company(p.195)
- • Pending renewals and approvals for pollution control compliance(p.207)
Opportunities
- • Rapidly growing Indian medical devices market(p.22)
- • Healthcare sector expansion with strong CAGR(p.22)
- • Significant e-health market growth(p.22)
- • Government support through PLI scheme for medical device manufacturing(p.30)
- • Backward integration strategy to reduce costs(p.31)
- • Expansion of manufacturing and assembly capabilities(p.34)
- • India's medical devices market projected to reach US$50 billion by 2025 with diagnostic imaging CAGR of 13.5%(p.104)
- • Significant government support through PLI scheme with Rs. 3,420 crore outlay for medical device manufacturing(p.95)
- • Opportunity to expand geographical reach and deepen presence across India and international markets(p.104)
- • Backward integration opportunity through installation of surgical tape coating and injection moulding machines(p.104)
- • Growing healthcare spending and elderly population driving demand for medical devices(p.97)
- • Expansion into international markets through new geographic partnerships(p.124)
- • Growth in dialysis and renal care equipment market segment(p.124)
- • Capacity expansion potential with underutilized manufacturing facilities(p.114)
- • Product portfolio expansion and new product development(p.114)
- • Participation in exhibitions for brand building and market reach(p.114)
- • Expansion of medical device manufacturing portfolio(p.186)
- • Geographic expansion through international distribution agreements(p.186)
- • Growth in critical care and radiology product lines(p.187)
- • Significant revenue growth trajectory(p.191)
- • Services offering expansion for dialysis centres(p.186)
Threats
- • Dependence on external collaboration agreements subject to non-renewal(p.29)
- • Supply chain disruption risks from limited sourcing(p.29)
- • Import restrictions and regulatory constraints on imports(p.31)
- • Foreign exchange volatility impacting import costs and export margins(p.34)
- • Intense competition in medical devices sector(p.37)
- • Regulatory and statutory licensing risks(p.30)
- • Product liability and quality control risks(p.31)
- • Economic slowdown reducing healthcare spending(p.29)
- • Macroeconomic headwinds in India(p.42)
- • COVID-19 pandemic impact uncertainty(p.41)
- • High import dependency of India's medical devices market at 75-80% with intense competition(p.94)
- • Regulatory changes in medical devices sector may impact operations and compliance costs(p.95)
- • Currency fluctuation risk given significant import component in product portfolio(p.77)
- • Dependence on third-party suppliers and vendor availability for critical equipment and raw materials(p.77)
- • Intense competition from organized and unorganized healthcare industry players(p.114)
- • Regulatory changes in medical device classification and licensing requirements(p.119)
- • Dependence on imported components and raw materials(p.107)
- • Exposure to foreign exchange fluctuations on imported products(p.151)
- • Potential price regulation under pharmaceutical pricing policies(p.119)
- • Supply chain disruptions and dependency on external manufacturers(p.106)
- • Regulatory changes in drugs and medical devices industry(p.187)
- • Increased competition in medical equipment and disposables sector(p.187)
- • Supply chain and vendor concentration risks(p.187)
- • Foreign exchange and commodity price volatility(p.187)
- • Dependence on key management personnel(p.187)
- • Technology obsolescence and rapid innovation cycles(p.187)
- • Macroeconomic and pandemic-related uncertainties(p.187)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hanskumar Shamji Shah | Promoter | 45.92% | 33.78% |
| Kaushik Hanskumar Shah | Promoter | 27.38% | 20.14% |
| Hemant Praful Shah | Promoter | 22.58% | 16.61% |
| Naman Hemant Shah | Promoter Group | 1.24% | 0.91% |
| Leena Hanskumar Shah | Promoter Group | 1.14% | 0.84% |
| Neha Hanskumar Shah | Promoter Group | 1.02% | 0.74% |
| Neha Hemant Shah | Promoter Group | 0.72% | 0.53% |
| Hanskumar Shamji Shah | Promoter | 45.92% | 33.78% |
| Kaushik Hanskumar Shah | Promoter | 27.38% | 20.14% |
| Hemant Praful Shah | Promoter | 22.58% | 16.61% |
| Naman Hemant Shah | Promoter Group | 1.24% | 0.91% |
| Leena Hanskumar Shah | Promoter Group | 1.14% | 0.84% |
| Neha Hanskumar Shah | Promoter Group | 1.02% | 0.74% |
| Neha Hemant Shah | Promoter Group | 0.72% | 0.53% |
| Hanskumar Shamji Shah | Promoter | 45.92% | — |
| Kaushik Hanskumar Shah | Promoter | 27.38% | — |
| Hemant Praful Shah | Promoter | 22.58% | — |
| Hanskumar Shamji Shah | Promoter | — | — |
Leadership
Hanskumar Shamji Shah · Chairman and Managing Director
Kaushik Hanskumar Shah · Whole Time Director & Chief Financial Officer
Hemant Praful Shah · Whole Time Director
Meenal Ajmera · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Hemant Surgical Industries IPO FAQs
What is the lot size of Hemant Surgical Industries IPO?
The minimum lot size of Hemant Surgical Industries IPO is 1,600 shares. One lot costs ₹1,44,000 at the cut-off price.
When does Hemant Surgical Industries IPO open and close?
Hemant Surgical Industries IPO opened for subscription on 24 May 2023 and closed on 26 May 2023.
What is the listing date of Hemant Surgical Industries IPO?
Hemant Surgical Industries IPO listed on 05 Jun 2023.