QMS Medical Allied Services SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2022 – 30 Sep 2022
- Listing date
- 11 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹121 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹56.87 Cr
- Market cap at offer price
- ₹216 Cr
- Promoter holding
- 100.00% → 73.67% pre-issue → post-issue
- ISIN
- INE0FMW01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- A1 A2/B1 B2, Navkala Bharti Bldg, Plot No16, Prabhat Colony, Near Santacruz Bus Depot, Santacruz East, 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 | 0 | — | — |
| Market maker | 2,36,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹121
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,21,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,42,000 |
| S-HNI (max) | 8 | 8,000 | ₹9,68,000 |
| B-HNI (min) | 9 | 9,000 | ₹10,89,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.11 | — |
| P/E (×) | 17.02 | — |
| Market cap | — | ₹216 Cr |
Key performance indicators
- Return on net worth
- 34.50%
- Debt / equity
- 1.03
- PAT margin
- 7.25%
- NAV per share
- ₹20.62
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About QMS Medical Allied Services SME
QMS Medical Allied Services Limited, incorporated on September 14, 2017 and converted to public limited on November 6, 2020, is engaged in the marketing and distribution of a wide range of medical and healthcare devices and accessories to clinics, pharma companies, medical companies, and individual users. The company sells products both under manufacturer brands and its own brand 'Q-Devices', which was recently launched to provide affordable and quality medical devices. Major products include blood pressure monitors, glucose monitoring kits, dental products, personal protection kits, stethoscopes, oxygen concentrators, pulse oximeters, IR thermometers, and weighing scales. Additionally, the company offers evidence-based medical education programs under 'Educamedics', an online portal for continuing medical education (CME) services used for updating physician knowledge and supporting pharmaceutical companies' medical awareness initiatives.
Company Analysis
from RHPQMS Medical Allied Services Limited markets and distributes medical and healthcare devices and accessories, including its own brand 'Q-Devices', along with online CME services through 'Educamedics'.
QMS Medical Allied Services Limited, incorporated on September 14, 2017 and converted to public limited on November 6, 2020, is engaged in the marketing and distribution of a wide range of medical and healthcare devices and accessories to clinics, pharma companies, medical companies, and individual users. The company sells products both under manufacturer brands and its own brand 'Q-Devices', which was recently launched to provide affordable and quality medical devices. Major products include blood pressure monitors, glucose monitoring kits, dental products, personal protection kits, stethoscopes, oxygen concentrators, pulse oximeters, IR thermometers, and weighing scales. Additionally, the company offers evidence-based medical education programs under 'Educamedics', an online portal for continuing medical education (CME) services used for updating physician knowledge and supporting pharmaceutical companies' medical awareness initiatives.
Objects of the Issue
- Funding Additional Working capital requirements ₹2,700.00 lakhs p.17
- General Corporate Purposes ₹638.00 lakhs p.17
- Offer Expenses ₹50.00 lakhs p.17
- Funding additional working capital requirements ₹2,700.00 lakhs p.56
- General Corporate Purposes ₹658.00 lakhs p.56
- General corporate purposes p.144
Issue Structure
- Total Issue
- ₹5,687.00 lakhs (47,00,000 Equity Shares at ₹121.00 per share)
- Fresh Issue
- ₹3,388.00 lakhs (28,00,000 Equity Shares at ₹121.00 per share)
- Offer for Sale
- ₹2,299.00 lakhs (19,00,000 Equity Shares by Mahesh Makhija at ₹121.00 per share)
- Price Band
- ₹121.00 per Equity Share (Fixed Price Offer)
- Face Value
- ₹10.00 per Equity Share
Business Model
The company operates as a marketing and distribution business for medical and healthcare devices and accessories. It procures products from third-party manufacturers, including manufacturing products under its own 'Q-Devices' brand from third-party manufacturers, and sells them directly to end users. Major revenue comes from a limited number of customers, with top 10 customers constituting 86.17% to 92.87% of revenue from operations. The company also generates revenue from CME services through its 'Educamedics' online portal.
Business Segments
SWOT Analysis
- • Established brand with recent launch of affordable Q-Devices(p.16)
- • Wide product portfolio across medical devices and healthcare accessories(p.16)
- • Complementary CME services through Educamedics portal(p.16)
- • Strong revenue growth trajectory(p.38)
- • Experienced promoter with 28 years in medical devices industry(p.74)
- • Established brand reputation and long-term customer relationships(p.74)
- • Asset-light business model enabling capital efficiency and scalability(p.74)
- • Diversified revenue streams across B2B pharma, education, and retail channels(p.72)
- • Strong revenue growth trajectory(p.58)
- • Heavy dependence on limited customer base(p.21)
- • Reliance on third-party manufacturers without formal long-term supply agreements(p.21)
- • High working capital requirements with significant inventory and receivables(p.23)
- • Heavy reliance on promoter with limited succession planning(p.24)
- • Significant debt obligations with floating rate exposure(p.28)
- • Trademark not registered in company name; dependent on promoter's non-exclusive permission(p.29)
- • Group company with negative net worth poses reputational risk(p.28)
- • Geographic concentration in Mumbai with undiversified operations(p.26)
- • Partial office premises held on leave-and-license basis from promoter(p.27)
- • Negative cash flows from operations in FY 2022(p.28)
- • High dependence on a few major customers in B2B pharma segment(p.77)
- • Significant working capital intensity requiring substantial bank borrowings(p.57)
- • Rising short-term borrowings indicating liquidity pressure(p.116)
- • Reliance on third-party manufacturers with no vertical integration(p.77)
- • Limited scale compared to larger competitors with greater resources(p.79)
- • High dependence on top 10 customers(p.133)
- • High dependence on top 10 suppliers(p.133)
- • Significant financial leverage and debt burden(p.124)
- • Increasing financial charges and interest costs(p.130)
- • Negative operating cash flow in fiscal year 2022(p.132)
- • Significant market growth in Indian medical devices sector(p.16)
- • Massive under-penetration of medical devices in India(p.16)
- • Growing export opportunity for Indian medical devices(p.16)
- • Government initiatives to boost medical device manufacturing and exports(p.17)
- • Home healthcare products gaining traction post-COVID(p.23)
- • Expansion of customer base and market reach(p.22)
- • Expanding healthcare market with 22% CAGR growth projected through 2022(p.66)
- • Medical devices market growth at 37% CAGR to US$50 billion by 2025(p.67)
- • Government support through PLI scheme and Make in India initiatives(p.70)
- • High import dependency creating local manufacturing opportunities(p.68)
- • Growing penetration of health insurance and awareness driving demand(p.67)
- • Expansion of CME and patient service programs revenue stream(p.72)
- • COVID-19 driven acceleration in home healthcare adoption(p.127)
- • Home healthcare demand growth reducing hospital visits(p.132)
- • Strong revenue growth trajectory in medical devices(p.129)
- • Expansion into new distribution channels and products(p.127)
- • Competition from larger players with greater resources(p.24)
- • Risk of counterfeit and look-alike products(p.21)
- • Technological changes affecting product demand(p.22)
- • Regulatory approval requirements for manufacturing vendors(p.21)
- • Economic downturn impact on demand(p.33)
- • Changes in tax laws and regulatory environment(p.34)
- • Interest rate fluctuations on floating rate debt(p.25)
- • Ongoing impact of COVID-19 pandemic on operations(p.22)
- • Natural disasters and supply chain disruptions affecting operations(p.31)
- • Import dependency creates supply chain vulnerability(p.16)
- • Intense competition from domestic and international players with greater scale(p.79)
- • Regulatory dependency on Drugs and Cosmetics Act and licensing requirements(p.80)
- • Supply chain and logistics vulnerabilities demonstrated during COVID-19(p.73)
- • High import dependency exposing business to forex and input price volatility(p.72)
- • Dependence on promoter with concentrated shareholding at 98%(p.96)
- • Dependence on third-party suppliers with no formal supply agreements(p.127)
- • Economic conditions and macro-level market changes(p.127)
- • Regulatory changes and compliance requirements(p.127)
- • Technology and industry landscape evolution(p.127)
- • Supply chain disruption risk(p.126)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mahesh Makhija | Promoter | 98.00% | 82.63% |
| Guddi Makhija | Promoter Group | 1.00% | — |
| Diti Makhija | Promoter Group | 1.00% | — |
| Mahesh Makhija | Promoter | 98.00% | 71.98% |
| Guddi Makhija | Promoter Group | 1.00% | 0.84% |
| Diti Makhija | Promoter Group | 1.00% | 0.84% |
| Mahesh Makhija | Promoter/Selling Shareholder | — | — |
| Mahesh Makhija | Selling Shareholder | — | — |
Leadership
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.