Upcoming IPO: Sakhiya Skin Clinic files DRHP with BSE SME for public offer; check strengths and risks

Upcoming IPO: Sakhiya Skin Clinic has filed a draft red herring prospectus with BSE's SME platform to raise funds via an Initial Public Offering (IPO).

The IPO consists of 50.10 lakh new equity shares and an offer for sale (OFS) component of 11.62 lakh shares by promoters Rupalben Jagdishbhai Sakhiya and Jagdishkumar Jadavbhai Sakhiya.

The money raised will be utilised to the tune of ₹42.57 crore to open new clinics across India, ₹9.65 crore for investment in its subsidiary, Dr Sakhiya's Advanced Skin Science LLP, and ₹3.2 crore for debt repayment. A part will also be used for technology upgrades and general corporate purposes.

Established in 2011, Sakhiya Skin Clinic offers dermatology-focused healthcare services in India.

The Surat-based company specialises in dermatology, cosmetology, and aesthetic treatments, along with its own cosmeceutical product line.

It reported a revenue of ₹52.87 crore from its healthcare services and a profit after tax of ₹10.92 crore in FY25. The company has served over 5.40 lakh patients through its network of 35 clinics across 24 cities, primarily operating in Gujarat and Maharashtra.

The equity shares are proposed to be listed on the BSE SME platform.

GYR Capital Advisors is the lone book-running lead manager, while KFin Technologies serves as the registrar.

Sakhiya Skin Clinic IPO: Strengths

• Established in 2011, Sakhiya Skin Clinic has developed a strong foothold in the dermatology and cosmetology space in India. It operates 35 clinics across 24 cities in the country, cumulatively serving over 5,40,000 patients.
• The company is led by promoter Dr Jagdishkumar Jadavbhai Sakhiya, a medical doctor with over 25 years of experience in dermatology and cosmetology. The firm has employed over 37 qualified doctors and 128 skin therapists across its clinic network.
• The company has a strong retention and recurring client base. For the financial year 2023-24 (FY24) and FY25, the patient retention rate ranged between 79.73% and 79.08%.

Sakhiya Skin Clinic IPO: Risks

• The company is highly dependent on doctors and other professionals. Its business will be affected significantly in case it is unable to attract or retain such professionals.
• Its success depends on its ability to innovate, invest in research and development (R&D), and upgrade its clinics with advanced technologies and equipment. Any inability to do so can adversely affect its business.
• Sakhiya Skin Clinic derived 47.33% of its revenue from its top five clinics in FY25. Any development affecting these clinics can impact business.