Avience Biomedicals IPO

About Avience Biomedicals IPO

Avience Biomedicals Limited IPO is an IPO of TBA. It consists of a fresh issue of up to 17,28,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Avience Biomedicals IPO

• Part-financing of capital expenditure towards the setting up of a new manufacturing unit at Industrial Plot No. 70, Sector 28, in the Medical Device Park under the Yamuna Expressway Industrial Development Authority (YEIDA), Gautam Buddha Nagar, Uttar Pradesh.

• Funding of the working capital requirements of the company.

• To meet general corporate purposes.

Industry Outlook

Healthcare has become one of India's largest sectors, both in terms of revenue and employment. The industry is growing at a tremendous pace owing to its strengthening coverage, improved services, and increasing expenditure by both public and private players. The healthcare profit pools are projected to grow at a 4% CAGR from US$ 65,400 crores in 2021 to US$ 79,000 crores in 2026. The medical devices industry in India has been expanding over the years, largely driven by the proliferation of modern diagnostic and treatment solutions. In recent years, changing lifestyles have further increased human reliance on novel medical devices. The Indian medical devices sector’s contribution has recently become even more prominent, as India supported the global battle against the COVID-19 pandemic through the production of medical devices and diagnostic kits — such as ventilators, RT-PCR kits, IR thermometers, PPE kits, and N-95 masks. India is one of the fastest-growing markets in the global medical devices industry and is expected to grow at a CAGR of 15%. The current market share in the global market is estimated to be 1.5%. India is the fourth-largest medical devices market in Asia, after Japan, China, and South Korea, and ranks among the top 20 global medical devices markets.

Company Information

Avience Biomedicals Limited, established in 2019 amidst the global challenges of the COVID-19 pandemic, has emerged as an innovative diagnostics solutions provider. Recognised as a startup and a small-scale industry under MSME, the company is committed to empowering healthcare professionals with advanced technology. Avience Biomedicals Limited commenced its journey by producing essential diagnostic kits such as Viral Transport Media (VTM), COVID, Human Immunodeficiency Viruses (HIV), HBsAg, Malaria, Dengue, and others, aimed at aiding medical institutions with affordable and high-quality solutions. The company has expanded its product range from IVD rapid test kits to include a comprehensive line of medical devices such as serology products, biochemistry analysers, and biochemistry reagents, demonstrating a dedication to addressing diverse healthcare needs. Being purely focused on the B2B and B2G markets, their products cater to pathology labs, microbiology labs, hospitals, and research centres across India and internationally. In addition to manufacturing, the company also acts as a distributor and trader of medical equipment.

Risks of Avience Biomedicals IPO

• Dependence on key suppliers: They rely on a few key suppliers for raw materials, posing a risk to supply chain stability.

• High research and development costs: Developing new products requires significant investment in research and development, which may strain financial resources.

• Regulatory challenges: Changes in regulatory requirements or compliance standards could increase costs and delay time-to-market for new products.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Fintellectual Corporate Advisors Private Limited

Registrar for the IPO is Skyline Financial Services Private Limited

Business Model

The company earns its revenue through the following sources:

• Producing essential diagnostic kits for diseases such as Viral Transport Media (VTM), COVID, Human Immunodeficiency Virus (HIV), HBsAg, Malaria, Dengue, and others, aimed at aiding medical institutions with affordable and high-quality solutions.
• Offering a product range that extends from IVD rapid test kits to a comprehensive line of medical devices such as serology products, biochemistry analysers, and biochemistry reagents, showcasing a commitment to addressing various healthcare needs.
• Operating as distributors and traders of medical equipment.

Company Growth Trajectory

Revenue from operations on a consolidated basis for the period that ended 30 September 2024 stood at ₹20.77 crores, accounting for 98.97% of the total income. Other income on a consolidated basis for the same period stood at ₹0.22 crores, representing 1.03% of the total income. Profit after tax on a consolidated basis for the period stood at ₹2.94 crores, which is 13.99% of the total income.

Company Market Position

Their industry presents significant entry barriers, including customer validation and approvals, customer expectations for process innovation and cost reduction, high quality standards, and stringent specifications. The company’s ability to offer end-to-end solutions that meet varying customer requirements, such as product reliability, user-friendliness, consistent quality, and cost-effectiveness, differentiates them from their competitors.

How To Check Allotment Status of Avience Biomedicals IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Skyline Financial Services Private Limited. To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Avience Biomedicals Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Skyline Financial Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Avience Biomedicals Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Avience Biomedicals IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.