Medistep Healthcare eyes ₹16.09 cr fundraise to acquire new plant & machinery

Medistep Healthcare is set to raise approximately ₹16.09 crore through its upcoming fixed-price Initial Public Offering (IPO), with the primary objective of strengthening its manufacturing infrastructure through the acquisition of advanced plant and machinery.

A significant portion of the IPO proceeds will be allocated toward the acquisition and installation of advanced equipment at the company’s existing manufacturing facility in Kheda, Gujarat. At the core of this investment is a fully automated, high-speed sanitary pad production line, capable of producing up to 500 pads per minute. This integrated line features raw material feeding, embossing, adhesive application, and inline quality inspection within a single, streamlined workflow.

Additionally, the company will commission a twin‐shaft ribbon blender with vacuum‐sealed hoppers and an integrated volumetric filler from DEF Tech Industries. This system will enable precise and hygienic blending and packaging of energy powder sachets at speeds of up to 200 units per minute. To enhance the secondary packaging process, three modular tri‐axis flow‐wrap machines will also be installed. These machines are equipped for automatic bag feeding, sealing, date-coding, and stacking, thereby increasing throughput and significantly reducing manual processes.

The capital expenditure also covers plant-floor modifications, utility installations, operator training, and warranty support. All systems are expected to be fully operational and certified within three months of their scheduled delivery in Q4 FY26. This strategic infrastructure upgrade is projected to increase overall manufacturing capacity by approximately 30 per cent over the next 12 months, markedly improving production efficiency, product quality, and the company’s responsiveness to growing market demand.

A portion of the funds will also go toward bolstering working capital to ensure uninterrupted raw material procurement and optimal inventory levels. Remaining proceeds will be used for general corporate purposes and expenses related to the IPO.

Under the IPO, Medistep will issue up to 37,44,000 equity shares of face value ₹10 each at a fixed offer price of ₹43 per share. The offer opens for subscription on August 8, 2025, and closes on August 12, 2025, with a minimum lot size of 3,000 shares. A total of 17,79,000 shares are reserved for retail investors, 17,76,000 shares for non-institutional investors, and 1,89,000 shares for the market maker. Fast Track Finsec Private Limited is the lead manager to the issue, and Cameo Corporate Services Limited will serve as the registrar. The company’s shares are proposed to be listed on the NSE Emerge platform on August 18, 2025.