Galaxy Medicare IPO: modest GMP, moderate subscription prior to mention

Galaxy Medicare, a Bhubaneswar-based medical device and surgical dress manufacturer, is set to be mentioned on the NSE SME platform on 17 September after closing its RS 22 Crore IPO last week. The issue has not led any excitement on the gray market, with the GMP currently at 0%, which suggests that the share can debut around its issue price of RS 54.

The IPO, which was opened on September 10 and closed on September 12, consisted of a new number of RS 17.86 Crore and an offer for sale of RS 4.45 Crore. It was subscribed to 1.83 times in general, with the retail section signing 2.10 times subscription, non-institutional investors 1.48 times and qualified institutional buyers who fully subscribe their quota.

Galaxy Medicare produces a wide range of products, including plaster of Paris (POP) connections, gaa products, glue tires, compression bands and wound care solutions.

With 27 registered trademarks, its products are delivered to government health departments, business hospitals and private institutions throughout India. The company also exports to select international markets.

Financially, Galaxy reported income from RS 40.27 Crore in FY25, an increase of 9% compared to the previous year, while net profit fell by 9% to RS 3.37 Crore. The margins remained stable with the EBITDA margin at 11.7% and Pat -Marge at 8.6%.

With the upper tire, the IPO appreciates the company on a p/e after the 24.3x edition. The proceeds of the issue will be used to finance machines purchases for its existing facility in Bhubaneswar, working capital needs and general business purposes. While the established Merkendus van Galaxy and the consistent demand for its medical products are good augur, the SME IPO room must be closely viewed due to the high volatility.

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