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Pramodini Medicare Ltd. (PML) is a diagnostic service supplier in India. It supplies a spread of technology-enabled diagnostic companies reminiscent of radiology, scientific laboratory and nuclear drugs service to public hospitals, personal hospitals, sure PSU (Public Sector Undertaking) of Government of India and medical faculties throughout tier I, tier II and tier III cities all through India. Its diagnostic companies embody a complete vary of choices: (i) “Radiology” which covers Magnetic Resonance Imaging (MRI), Computed Tomography (CT scan), X- ray, Ultrasound with color doppler, Mammography, Dexa Scan and Intervention Radiology, (ii) “Clinical Laboratory” which incorporates Haematology, Micro-Biology, Immunology, Pathology & Bio-Chemistry and (iii) “Nuclear Medicine” which incorporates PET-CT (Positron Emission Tomography-Computed Tomography), SPECT (Single Photon Emission Computed Tomography) and Nuclear remedy.
The firm additionally supplies teleradiology companies by way of its registered workplace located at Vijayawada which features on a 24×7 foundation all year long. It supplies healthcare companies for core testing, sufferers prognosis, illness prevention and monitoring of assorted well being situations. Its companies contains each routine and specialised exams, that are used for prediction, early detection, diagnostic screening, affirmation and/or monitoring of ailments. PML’s enterprise operates throughout 4 key fashions specifically 1. Public Private Partnership (with authorities hospitals and authorities instructing hospitals) 2. Private Partnership (with personal sector hospitals) 3. Strategic Partnership with PSUs (Public Sector Undertakings) Government of India and 4. Private Centres (standalone centre).
The above fashions are based mostly on hospital partnerships, the place diagnostic centres are arrange throughout the present premises of hospitals, well being centres and it helps them by offering diagnostic testing service. It has entered into Memorandum of Understanding (MOUs) with these establishments for the institution and operation of onsite diagnostic centres inside their present healthcare amenities. As on the date of submitting of this Red Herring Prospectus, it’s working by way of 16 diagnostic centres throughout these completely different fashions. These centres are positioned in 7 states in India: Uttar Pradesh, Andhra Pradesh, Karnataka, West Bengal, Haryana/NCR Delhi, Madhya Pradesh and Kerala (Operation but to start). The companies provided at every location differ based mostly on the scope agreed beneath the respective MOUs. It has presence throughout 14 cities in India. The firm additionally has a processing unit cum laboratory in Vijayawada.
PML presents a one-stop answer for all companies to sufferers by way of its operational community. The firm additionally presents custom-made well being and wellness packages tailor-made to fulfill the precise necessities of sufferers. It focuses on a affected person centric method to boost the general high quality of companies for optimum affected person’s satisfaction. Several elements, together with built-in companies mannequin, high quality of diagnostic companies, centre infrastructure and affected person’s expertise, comfort of its operational community in its core geographies are necessary differentiating elements in sufferers selecting it as their most well-liked and trusted diagnostic service supplier, which helps the corporate in retaining its sufferers, and units it other than opponents. As of March 31, 2026, it had 161 workers on its payroll and extra 18 contract employees.
Issue Details / Capital History
The firm is popping out with its maiden e-book constructing route combo IPO of 5851200 fairness shares of Rs. 10 every to mobilize Rs 69.04 cr. on the higher cap. The IPO consists of 5350800 contemporary fairness shares (price Rs. 63.14 cr. on the higher cap), and an Offer for Sale (OFS) of 500400 fairness shares (price Rs. 5.90 cr. on the higher cap). The firm has introduced a worth band of Rs. 110 – Rs. 118 per share. The minimal utility to be made is for 2400 shares and in multiples of 1200 shares thereon, thereafter. The IPO opens for subscription on August 12, 2026, and can shut on August 14, 2026. The IPO represent 26.54% of the post-IPO paid-up capital of the corporate. The shares can be listed on NSE SME Emerge. From the online proceeds of the contemporary fairness situation, it’s going to make the most of Rs. 45.15 cr. for capex on buy of medical equipments, and the remaining for common company functions.
The IPO is solely lead managed by Smart Horizon Capital Advisors Pvt. Ltd., whereas Purva Sharegistry (India)Pvt. Ltd., is the registrar to the problem. Shreni Shares Ltd., and Rainbow Securities Pvt. Ltd. are the market makers. Shreni Shares Ltd. can also be a syndicate member.
After issuing preliminary fairness capital at par worth, the corporate issued additional shares within the worth vary of Rs. 110.00 – Rs. 155.00 per share, between March 2023, and August 2023. It has additionally issued bonus shares within the ratio of 12 for 1 in March 2026. The common value of acquisition of shares by the promoters/promoting stakeholders is Rs. NA, however as proven on web page 1 of RHP, it stands at Rs. 4.25, Rs. 6.23, and Rs. 6.99 per share.
Post-IPO, firm’s present paid-up fairness capital of Rs. 16.69 cr. will stand enhanced to Rs. 22.05 cr. Based on the higher band of the IPO pricing, the corporate is in search of a market cap of Rs. 260.14 cr.
IPO Lead Managers & Registrar
On the monetary efficiency entrance, for the final three fiscals, the corporate has (on a consolidated foundation) reported a complete earnings/web revenue of Rs. 35.79 cr. / Rs. 7.14 cr. (FY24), Rs. 38.55 cr. / Rs. 11.14 cr. (FY25), and Rs. 63.38 cr. / Rs. 17.38 cr. (FY26). It marked development in its high and backside traces for the reported intervals. However, the PAT margins elevate eyebrows and concern over its sustainability going ahead as it’s working in a extremely aggressive and fragmented phase. Its outperforming margins in comparison with its listed friends additionally elevate eyebrows.
For the final three fiscals, the corporate has reported a median EPS of Rs. 8.15, and a median RoNW of 31.29%. The situation is priced at a P/BV of three.71 based mostly on its NAV of Rs. 31.84 per share as of March 31, 2026, however its post-IPO NAV knowledge is lacking from the supply paperwork.
If we attribute FY26 tremendous earnings to its post-IPO totally diluted paid-up fairness capital, then the asking worth is at a P/E of 14.97, and based mostly on FY25 earnings, the P/E stands at 23.37. The situation seems aggressively priced, based mostly on its common earnings.
For the reported intervals, the corporate has posted PAT margins of 19.67% (FY24), 28.84% (FY25), 27.90% (FY26), and RoCE margins of 31.90%, 36.48%, 34.66%, respectively, for referred intervals.
All quantities in Indian Rupees crores
The firm has not paid any dividend for the reported intervals of the supply doc. It will undertake a prudent dividend coverage, based mostly on its monetary efficiency and future prospects.
Comparison with Listed Peers
As per the supply doc, the corporate has proven Invicta Diagnostics, Krsnaa Diagnostics, Star Imaging, as its listed friends. They are at present buying and selling at a P/E of 19.9, 17.8, and seven.37 (as of August 10, 2026). However, they don’t seem to be actually comparable on an apple-to-apple foundation. This comparability seems to be an eyewash.
Merchant Banker’s Track Record
On service provider banker’s observe file side, that is the first mandate kind LSI Financial Services, whereas that is sixth mandate from NexGen Financial within the final two fiscals (together with the continuing one). Out of final 5 listings, 1 listed at low cost and the remaining with premium starting from 2.56% to 67.68% on the itemizing date.
Conclusion
PML is engaged in offering diagnostic companies in India, at present having presence in 7 states. The firm marked development in its high and backside traces for the reported intervals. Its outperforming margins in comparison with listed friends for the final three fiscals elevate concern over its sustainability going ahead, as it’s working in a extremely aggressive and fragmented segments. Based on its latest tremendous monetary knowledge, the problem seems aggressively priced. Only well-informed/money surplus buyers might park average funds for long run.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is well known for reviewing public points and non-convertible debentures (NCDs) within the major market. Drawing on over three many years of market expertise and shut interplay with service provider bankers, his evaluations deal with detailed basic and monetary evaluation of firms, with a particular emphasis on SME public points.
Disclaimer: The data offered herein is solely for academic and informational functions and doesn’t represent a proposal, solicitation, or advice to purchase or promote any securities. Readers are suggested to seek the advice of a certified monetary advisor earlier than making any funding selections. Investments within the securities market are topic to market dangers. The creator doesn’t intend to put money into the securities mentioned.
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