Amwill Healthcare makes disappointing debut, shares list at 20% discount to IPO price on BSE SME

Amwill Healthcare made a disappointing debut on Wednesday, February 12, with its shares listing at a discount of nearly 20% on the BSE SME platform.

The stock opened at ₹88.85 per share, reflecting a decline of 19.95% from its issue price of ₹111 apiece.

Following the muted start, the shares further dropped as much as 4.95%, to hit the lower circuit limit of ₹84.45 apiece on the BSE. However, the stock soon recovered early losses to trade at ₹86.1 apiece, down 3.1%, on the BSE at around 10:28 am.

Over 20.8 lakh equity shares were traded on the exchange, with a total turnover of ₹19.29 crore in the first 10 minutes of trading. The company’s market capitalisation stood at ₹169 crore.

At the listing price of ₹88.85 per share, the value of a single lot of shares bagged by investors in the Amwill Healthcare IPO share allotment stood at ₹1,06,560 (₹88.85 x 1,200). After the weak listing, the IPO investors would have faced losses of ₹19,380 per lot size as the minimum investment in the IPO for a single lot was ₹1,26,000 at the lower price band of the issue (₹105 x 1,200).

Amwill Healthcare IPO Details

Amwill Healthcare raised ₹59.98 crore through its IPO, which included a fresh issue of 44.04 lakh shares, worth ₹48.88 crore, and an offer for sale of 10 lakh shares amounting to ₹11.1 crore. The price band for the IPO was set between ₹105 and ₹111 per share.

The IPO received a modest response, with an overall subscription of nearly 6 times, led by the institutional investors. The Qualified Institutional Buyers (QIB) category was oversubscribed by 7.8 times, followed by Non-Institutional Investors (NIIs) at 5.66 times, and Retail Investors at 4.77 times.

The IPO was open for subscription from February 5 to February 7. The company finalised the IPO allotment status on February 10.

The company plans to use the net proceeds from the IPO for working capital requirements, marketing and brand-building initiatives, and general corporate purposes. It has proposed to utilise ₹25 crore towards working capital needs and ₹5 crore for brand-building as well as marketing campaigns. The funds raised through OFS will go to selling shareholders and promoters—Bhavika Gandhi and Isha Gandhi and two others.

About Amwill Healthcare

Amwill Healthcare is a derma-cosmetic development company, which collaborates with contract manufacturers, distributors, and third-party product development agencies. This partnership has helped the company build expertise in manufacturing, packaging, and distribution.

Its primary focus is the development of dermatological, cosmeceutical, and aesthetic products, which it accomplishes by outsourcing key functions such as manufacturing, prototype development, and distribution to third parties for efficient execution.

Most of the products marketed by the company were developed by its promoter and managing director, Anand Gandhi, who originally founded Amwill Healthcare as a sole proprietorship.