Amwillhealth, an emerging name in the derma-cosmetic sector, is set to launch its Initial Public Offering (IPO). The company’s IPO aims to strengthen its market reach, enhance product development capabilities, and capitalize on India’s fast-growing beauty and personal care industry. This blog provides an in-depth analysis of Amwillhealth’s IPO covering various aspects like company overview, financials, key ratios, and industry outlook.
Company Overview
Amwillhealth is a derma-cosmetic development company engaged in dermatological, cosmeceutical, and aesthetic products. They are associated with contract manufacturers, distributors, and third-party development agencies specializing in product formulation and development. Although their main business happens in Karnataka, Andhra Pradesh, and Telangana, the company has slowly started expanding.
The company’s product portfolio is categorized into two segments:
- Development and contract manufacturing of generic dermatological solutions
- Formulation of solutions for specific dermatological problems
Promoters and Experience
The promoters of the company are Anand Gandhi and Tarun Gandhi. Both have decades of experience in the dermatology industry. Their deep-rooted knowledge of the industry along with close contacts with dermatologists has helped Amwillhealth build an edge over competitors in the development of products. Anand Gandhi has played a pivotal role in curating the product portfolio of the company based on his knowledge in the dermatology field and product formulation.
This Indian beauty and personal care industry is said to be around $14 billion and growing at a good rate because of premiumization (meaning – the action or process of attempting to make a brand or product appeal to consumers by emphasizing its superior quality and exclusivity), online retail, and increasing consumer preference for organic and ethical brands. E-commerce platforms like Nykaa and Amazon have further fueled demand, making it a lucrative market for companies like Amwillhealth. According to Euromonitor International, the beauty and personal care category exceeded $400 million in internet sales in 2023, compared to $100 million in 2014.
India’s cosmetics industry is divided into skincare, haircare, oral care, fragrances, and color cosmetics. The market as a whole is expected to reach $20 billion by 2025 with a CAGR of 25%. The cosmetics industry today, globally, is growing at a CAGR of 4.3% and is slated to touch $450 billion by 2025. The organized and unorganized segments in the Indian beauty and grooming market are expected to reach a 44:55 ratio by 2025 from the prevailing 25:75 ratio currently.
Objectives of Amwillhealth IPO
The major objectives of Amwillhealth IPO are as under:
- Expansion of business operations in existing and new markets
- Strengthen research and development for product innovation
- Marketing and branding efforts to capture a larger market share
- To fund general corporate purposes and working capital requirements.
Financials of the Company
Amwillhealth has demonstrated promising financial growth over the years. The company’s revenue from operations and profitability metrics reflect its expansion and increasing market acceptance.
Key Financials (in ₹ crores)
| Particulars | 31-Dec-2023 | 31-Mar-2023 | 31-Mar-2022 | 31-Mar-2021 |
|---|---|---|---|---|
| Revenue from Operations | 35.79 | 30.17 | 27.61 | 18.00 |
| Total Income | 36.05 | 30.28 | 27.62 | 18.00 |
| Operating EBITDA | 14.71 | 4.30 | 3.66 | -1.02 |
| Operating EBITDA Margin (%) | 41.11% | 14.24% | 13.25% | -5.69% |
| Profit After Tax (PAT) | 11.00 | 3.11 | 2.57 | -0.99 |
| Net Profit Margin (%) | 30.75% | 10.32% | 9.32% | -5.54% |
| Return on Equity (ROE) (%) | 70.42% | 67.67% | 172.97% | 91.92% |
| ROCE (%) | 91.40% | 83.32% | 204.08% | 103.05% |
| Current Ratio | 4.49 | 1.51 | 1.13 | 0 |
The company has transitioned from losses in 2021 to consistent profits in subsequent years, demonstrating operational efficiency and strong revenue growth.
Inferences from Financials and Key Ratios
- The company has demonstrated significant revenue growth, showing increased consumer demand.
- Profitability has significantly improved, reflecting good cost management.
- Low debt levels indicate that the company is not highly leveraged, thereby reducing financial risks.
- Strong EBITDA margins suggest operational efficiency.
IPO Details
| IPO Name | Amwill Healthcare |
| IPO Start Date | February 5, 2025 |
| IPO End Date | February 7, 2025 |
| Price Band | ₹105 to ₹111 per share |
| Lot Size | 1200 shares per lot |
| Issue Type | Fresh Issue & OFS |
| Issue Size | 59.98 crores |
| Basis of Allotment | February 10, 2025 |
| Listing Date | February 12, 2025 |
| Retail Investors Min lot & Amount | 1 lot & ₹1,33,200 |
| Retail Investors Max lot & Amount | 1 lot & ₹1,33,200 |
| HNI Min lot & Amount | 2 lots & ₹1,33,200 |
| Listing Exchange | BSE SME |
Risks Involved with the IPO
Every IPO comes with some risks, and Amwillhealth is no different. Some of the key risks are as follows:
Reliance on Contract Manufacturers: The company does not have in-house manufacturing and is dependent on third-party suppliers.
Limited Market Presence: Currently, the company has operations only in select states, limiting its national reach.
Regulatory Risks: The skincare and derma-cosmetic industry is highly regulated, and any policy changes could impact business operations.
Competitive Market: Amwillhealth operates in a competitive market with existing brands with larger marketing budgets and larger distribution networks in place.
Dependence on Key Personnel: The growth story of the company is currently dependent on its promoters and key managerial persons.
Conclusion – Amwillhealth IPO
Amwillhealth’s IPO is an exciting opportunity for investors looking to tap into the growing dermatology and skincare market. The company has strong financials, a focused product portfolio, and a growing market presence, making it well-positioned for future growth. However, as with any other, an investor should also consider the risk before making an investment decision.
FAQs on Amwillhealth IPO
1. What is the Amwillhealth IPO?
Amwillhealth IPO is the Initial Public Offering of Amwill Healthcare, a derma-cosmetic company specializing in dermatology and cosmeceutical products. The IPO consists of a fresh issue and an Offer for Sale (OFS).
2. When will the Amwillhealth IPO open and close?
The IPO will open on February 5, 2025, and close on February 7, 2025.
3. What is the price band for the Amwillhealth IPO?
The price band for the Amwillhealth IPO is set at ₹105 to ₹111 per share.
4. What is the lot size for retail investors?
Retail investors can apply for a minimum of 1 lot (1200 shares), which amounts to ₹1,33,200.
5. How much is the total issue size of Amwillhealth IPO?
The total issue size of the Amwillhealth IPO is ₹59.98 crores.
6. When is the basis of allotment for the Amwillhealth IPO?
The basis of allotment will be finalized on February 10, 2025.
7. When will Amwillhealth IPO be listed on the stock exchange?
The Amwillhealth IPO is expected to be listed on February 12, 2025, on BSE SME.
8. What are the objectives of the Amwillhealth IPO?
The company aims to use the funds for business expansion, research and development, marketing, and general corporate purposes.
9. What are the key financials of Amwillhealth?
As of December 31, 2023, the company reported revenue of ₹35.79 crores and a net profit of ₹11.00 crores with a 30.75% net profit margin.
10. What are the risks associated with the Amwillhealth IPO?
Some key risks include reliance on contract manufacturers, limited market presence, regulatory challenges, and competition from well-established brands.
11. What is the lot size and amount for HNIs?
The minimum lot size and amount for retail investors is 2 lots & Rs 1,33,200
12. What is the GMP for Amwillhealth IPO?
The GMP for Amwillhealth IPO is Rs.6
13. What are the subscription details for the Amwillhealth IPO?
The IPO has been subscribed 1.04 times on its first day of subscription. In the retail category, the IPO has been subscribed 1 times, 2.19 times in QIB, and 0.51 times in the NII category.
14. How to check the allotment status for Amwillhealth IPO?
The allotment status of Amwillhealth IPO can be checked on the official website of the registrar Bigshare Services Pvt Ltd
Related Information
For current and upcoming IPOs, check the following link