Avience Biomedicals IPO (18-22 June) Analysis

SME IPO Analysis  |  NSE Emerge Platform  |  100% Book Built Issue

Based on Draft Red Herring Prospectus dated July 2025  |  Price Band: To Be Announced

STATUS: Issue Dates: 18-22 June  |  Issue: 100% Fresh Issue (No OFS)  |  Exchange: NSE Emerge  |  Sector: IVD Diagnostics and Medical Devices  |  Noida, UP

 Avience Biomedicals Limited (ABL) is a Noida, Uttar Pradesh-based manufacturer, distributor, and trader of In-Vitro Diagnostic (IVD) products and medical devices. Incorporated in October 2019 as a private limited company (CIN: U74999DL2019PLC359158) and converted to public limited ahead of this IPO, the company is a fast-growing healthcare consumables business serving pathology laboratories, hospitals, research centres, and government health agencies across B2B, B2C, and B2G channels.

Core products and services:

• IVD Rapid Test Kits: Point-of-care rapid diagnostic cards for disease detection including infections, hormones, cardiac markers, and drugs of abuse. The company manufactures its own rapid cards and distributes third-party brands.

• Serology Products: Antibody and antigen tests for blood banking and infectious disease screening.

• Biochemistry Analysers and Reagents: Semi and fully automated instruments for routine biochemistry testing in pathology labs, with associated reagents.

• Culture Media: Microbiological growth media for laboratory diagnostics.

• Medical Device Trading and Distribution: Products sourced from other manufacturers and distributed to institutional and retail buyers.

Revenue channels: B2B (pathology labs, hospitals, research centres) contributed 70.25% of revenue in FY2023, declining to 39.53% in FY2025 as B2C and B2G grew. The government (B2G) channel is strategically important  India is expanding diagnostics coverage under Ayushman Bharat and other health programmes, creating large tender opportunities for CDSCO-compliant manufacturers.

Existing manufacturing: Noida, UP facility (approximately 6,200 square feet). New facility (primary IPO object): Plot No. 70, Sector 28, Medical Device Park, YEIDA, Gautam Buddha Nagar, UP (2,100 square metres). Building approval from YEIDA received. All operating licences (CDSCO manufacturing licence, factory licence, WHO-GMP, ISO 13485:2016, CE marking) are pending and will be obtained only after facility construction and machinery installation.

The new facility has a projected capacity of 2.88 crore semi-finished products per year, 3.6 crore rapid tests per year, and 50,000 litres of reagents per year.

Statutory auditor: M/s Haribhakti and Co. LLP (EY network firm)  an unusual and positive governance signal for an NSE Emerge SME company. Peer review auditor: M/s Manish Pandey and Associates.

Key Basics

This is a 100% Book Built Fresh Issue on NSE Emerge Platform. No OFS whatsoever. The company receives all proceeds. This is a DRHP-stage filing  price band, issue dates, and BRLM details are yet to be finalised.

Document Type	Draft Red Herring Prospectus (DRHP) dated July 2025. Pre-SEBI observation stage. Price band and issue dates to be announced.
Issue Type	100% Book Built Fresh Issue. NO Offer for Sale. Company receives all net proceeds.
Face Value	Rs.10 per Equity Share
Price Band	To be determined by Company in consultation with BRLM prior to Red Herring Prospectus filing.
Listing Exchange	NSE Emerge (NSE SME Platform). In-principle approval from NSE received.
Registrar	Skyline Financial Services Private Limited
Statutory Auditor	M/s Haribhakti and Co. LLP (EY network, reputed Big-4 affiliated firm) for main financials. M/s Manish Pandey and Associates as Peer Review Auditor and for restated financials.
Promoters	Details not fully extracted  private limited company since 2019, family-promoted.
New Facility Location	Plot No. 70, Sector 28, Medical Device Park, YEIDA, Gautam Buddha Nagar, UP. Building approval: Received. Operating licences: All pending.
Projected Capacity (new unit)	2.88 crore semi-finished products/year, 3.6 crore rapid tests/year, 50,000 litres reagents/year, 950 analysers/year, 4.5 lakh culture media units/year.
Eligibility	Regulation 229(1) of SEBI ICDR Regulations 2018 (post-issue paid-up capital less than or equal to Rs.10 crore).
Monitoring Agency	To be appointed prior to filing RHP.
Bid/Offer Dates	To be announced after SEBI observations and RHP filing.

 All Fresh Issue proceeds go to the company. Three uses: new manufacturing facility (primary capex), working capital, and GCP. The capex-intensive nature reflects the company transitioning from a small Noida facility to a WHO-GMP compliant Medical Device Park facility.

Object	Amount	Details
Setting up new manufacturing facility at YEIDA, Sector 28, Gautam Buddha Nagar, UP	Primary use (dominant)	2,100 sq mt WHO-GMP-compliant IVD manufacturing facility in YEIDA Medical Device Park. Equipment: semi and fully automatic machinery for rapid tests, reagents, analysers, culture media. HVAC alone: Rs.3.56 crore (Daikin VRV system from quotation). Civil construction: prefab shed and cleanroom fit-out. No purchase orders placed; quotations time-limited. All operating licences pending post-commissioning.
Working Capital Requirements	Rs.1,100 lakhs (across FY2026 and FY2027)	Net WC: Rs.341 lakhs (FY23), Rs.600 lakhs (FY24), Rs.940 lakhs (FY25). Projected: Rs.1,480 lakhs (FY26), Rs.2,657 lakhs (FY27). IPO funds Rs.1,100 lakhs. Balance from bank borrowings (Rs.645 lakhs projected) and internal accruals. Trade receivables (Rs.889 lakhs at FY25) and inventories (Rs.814 lakhs) are the dominant working capital drivers.
General Corporate Purposes	Up to 15% of gross proceeds	Ordinary business expenses, marketing, technology, strategic initiatives.

Critical note: The HVAC quotation alone (Rs.3.56 crore for air conditioning at the YEIDA facility) reveals that the new facility is a substantial investment  a WHO-GMP and ISO 13485 compliant IVD manufacturing facility requires cleanrooms, controlled temperature zones, and specialised utilities. The total facility cost is likely Rs.5-10 crore or more. Investors must assess the total capex requirement versus the net IPO proceeds available, which is not fully transparent at the DRHP stage.

Financial Performance

Note: All figures in Rs. lakhs unless stated. Three full years: FY2023, FY2024, FY2025. Restated Financial Statements under Indian GAAP by M/s Manish Pandey and Associates (peer review auditor).

Revenue

Revenue nearly tripled in two years: Rs.1,092.06 lakhs (FY2023) to Rs.1,625.51 lakhs (FY2024, +48.9%) to Rs.2,888.95 lakhs (FY2025, +77.7%). A further KPI disclosure references Rs.4,523.59 lakhs and Rs.2,396.40 lakhs  these appear to be projections or H1 FY2026 annualised data. On a reported basis, Rs.28.89 crore in FY2025 is a respectable scale for an NSE Emerge candidate in the IVD diagnostics sector.

Profitability

Metric	FY2023 (Rs. L)	FY2024 (Rs. L)	FY2025 (Rs. L)
Revenue from Operations	1,092.06	1,625.51	2,888.95
Revenue Growth %		48.85%	77.72%
EBITDA (Rs. L)	142.50	314.94	765.18
EBITDA Margin %	13.05%	19.37%	26.49%
Profit After Tax (PAT) (Rs. L)	78.26	199.43	519.58
PAT Margin %	7.17%	12.27%	17.99%
Basic and Diluted EPS (Rs.)	Not extracted	6.55	19.22
Return on Equity (ROE / RoNW) %	22.79%	39.31%	38.95%
Net Worth (Rs. L)	407.60	607.03	2,060.05
B2B Revenue Share %	70.25%	53.34%	39.53%

EBITDA margin nearly doubled from 13.05% to 26.49% in two years  a genuinely exceptional expansion. PAT grew 6.6x in the same period. FY2025 EPS of Rs.19.22 is strong for an SME IPO. The Net Worth jump from Rs.607 lakhs (FY2024) to Rs.2,060 lakhs (FY2025) implies a PAT contribution of Rs.520 lakhs plus possible additional equity infusion in FY2025  a Rs.933 lakh net worth increase that exceeds the standalone PAT, suggesting equity was raised or other comprehensive income was significant. This warrants verification in the detailed financial statements.

Balance Sheet

Item	FY2023 (Rs. L)	FY2024 (Rs. L)	FY2025 (Rs. L)
Net Worth	407.60	607.03	2,060.05
Short-Term Borrowings	248.70	599.92	717.44
Trade Receivables	180.72	242.16	889.01
Inventories	354.35	786.14	813.82
Short-Term Loans and Advances	127.87	167.31	137.69
Other Current Assets	0.70	2.17	4.16
Total Current Assets	663.64	1,197.78	1,844.68
Total Current Liabilities	322.62	597.86	904.80
Net Working Capital	341.03	599.92	939.88

Trade receivables jumped 3.7x in FY2025 (Rs.242 lakhs to Rs.889 lakhs) while revenue grew 1.8x. Receivable days: approximately 54 days (FY2024) to approximately 112 days (FY2025). This elevated debtor position reflects extended credit to B2B institutional buyers and potentially slower B2G payment cycles. The IPO working capital injection of Rs.1,100 lakhs is primarily to fund this receivables expansion and projected FY2027 growth to Rs.2,657 lakhs in total WC requirement.

Revenue Composition and Business Mix

Revenue Channel	FY2023 %	FY2024 %	FY2025 %	Notes
B2B (Labs, hospitals, research)	70.25%	53.34%	39.53%	Declining share as B2C and B2G grow faster. Still the largest segment.
B2C (Retail, pharmacy, direct)	Growing	Growing	Growing	Specific % not extracted but growing rapidly.
B2G (Government tenders, hospitals)	Small	Growing	Growing	High-value but slow-pay segment; WHO-GMP facility targets this.
Domestic	Dominant	Dominant	Dominant	India-focused. Export planned post-new facility WHO-GMP certification.
Export	Small	Growing	Growing	WHO prequalification for 2 products planned. Unlocks UN/international tender markets.

The strategic shift from B2B institutional (70% to 40%) to B2C and B2G reflects the company's ambition to build direct consumer touchpoints and access large government health programmes. The YEIDA facility, once commissioned and licensed, is specifically designed to meet the WHO-GMP standards required for B2G and export participation at institutional scale.

How Does It Compare to Peers?

The DRHP's peer comparison section was not accessible in the sections reviewed. No listed peer group could be identified. For context: listed IVD diagnostics service companies (Thyrocare, Metropolis, Dr. Lal PathLabs) are integrated service providers, not device manufacturers. Mid-size IVD manufacturers (Agappe Diagnostics, Transcell Biologics) remain private. Without peer P/E data from the DRHP, investors must rely on the company's own financial metrics for valuation anchoring.

Metric	Avience Biomedicals (FY2025)	Indicative Context
Revenue from Operations (Rs. L)	2,888.95	Rs.29 crore  meaningful scale for NSE Emerge
EBITDA Margin %	26.49%	Strong for a distribution-heavy diagnostics business
PAT Margin %	17.99%	High quality earnings for a young company
EPS Basic/Diluted (Rs.)	19.22	Strong standalone EPS
ROE / RoNW %	38.95%	Exceptional; reflects genuine capital efficiency
Trade Receivable Days (approx.)	112 days	Elevated; institutional credit extension
Listed Peer P/E Data	Not available in DRHP sections reviewed	Valuation benchmark requires full DRHP review
Indicative fair value (15-25x on EPS Rs.19.22)	Rs.288 to Rs.481	Approximate range only; no peer confirmation

 Key Risks

• New YEIDA facility has zero regulatory approvals  CDSCO licence, factory licence, WHO-GMP, ISO 13485 all pending post-commissioning: The primary use of IPO proceeds is building a new facility at YEIDA Medical Device Park. As of DRHP date, not a single operating licence has been obtained. CDSCO manufacturing licence (legally required to sell manufactured medical devices), factory licence, WHO-GMP, ISO 13485:2016, CE marking, and pollution control NOC are all listed as to be applied for after construction and machinery installation. For medical devices, CDSCO approval alone can take 12-24 months post-application. Investors are funding a facility with uncertain revenue contribution timeline.

• Trade receivables 3.7x in one year  receivable days approximately 112, far above normal institutional norms: Receivables of Rs.889 lakhs at FY2025 represent approximately 112 days of annual revenue outstanding. Normal B2B pathology lab credit is 60-90 days. This elevated position suggests either aggressive credit extension to win business, B2G government buyers with slow payment cycles, or collection challenges. Any deterioration in collection will worsen working capital faster than projected.

• Company only 6 years old (incorporated 2019)  limited cycle-tested operating history: FY2020-22 benefited from COVID-era IVD demand surge (rapid tests, PCR kits, serology). The company has not operated through a normal non-COVID diagnostics cycle at the current revenue scale. Investors should verify how much of the revenue trajectory is structurally defensible versus COVID-era tailwinds now normalising.

• Peer comparison section not available  valuation anchor is absent: Without a disclosed peer P/E or industry average from the DRHP, there is no market-derived valuation benchmark for the issue price. The price band (when announced) will need to be independently evaluated against indicative benchmarks.

• Total YEIDA facility cost unclear  HVAC alone Rs.3.56 crore implies significant total investment: The HVAC system for the new facility (Daikin VRV system) was quoted at Rs.2.42 crore (high side) plus Rs.1.14 crore installation (low side) = Rs.3.56 crore. A 2,100 sq mt WHO-GMP-compliant cleanroom IVD facility with full utilities, civil works, and machinery would likely cost Rs.8-15 crore total. The alignment between total project cost and available IPO proceeds needs verification.

• Net worth Rs.2,060 lakhs at FY2025 vs Rs.607 lakhs at FY2024  Rs.1,453 lakh increase exceeds FY2025 PAT of Rs.520 lakhs: The net worth increase of Rs.1,453 lakhs significantly exceeds the PAT of Rs.520 lakhs. This implies Rs.933+ lakhs of additional equity was raised in FY2025 (possibly through an earlier private placement or CCPS conversion). Investors must understand the full capital structure and any dilution events before the IPO.

• B2B revenue declining from 70% to 40%  revenue stability may be changing: As B2B institutional revenue declines as a proportion, predictability may reduce. B2C requires consumer brand investment; B2G has payment cycle risks. The revenue quality mix is evolving.

• Working capital requirement projected to nearly 3x by FY2027 (Rs.2,657 lakhs vs Rs.940 lakhs): If the YEIDA facility does not commission on schedule, the projected revenue driving this WC requirement will not materialise, creating a funding gap that may require additional borrowings.

• CDSCO and FSSAI regulatory risk  medical devices require strict compliance: IVD products and medical devices are regulated under the Medical Devices Rules, 2017. Non-compliance can result in licence suspension, product recall, or criminal penalties. Maintaining compliance across an expanded manufacturing footprint requires robust quality management systems.

• Dependence on distributed third-party products reduces margin quality: A portion of revenue comes from distributing products manufactured by others. These carry lower margins and create supplier relationship risk.

Positives

• Revenue 3x in 2 years: Rs.1,092 lakhs (FY23) to Rs.2,889 lakhs (FY25)  genuine diagnostics growth.

• EBITDA margin expanded from 13.05% to 26.49% in 2 years  exceptional margin improvement reflecting operating leverage and product mix shift toward own-manufactured higher-margin IVD products.

• PAT grew 6.6x: Rs.78 lakhs (FY23) to Rs.520 lakhs (FY25); EPS Rs.19.22 in FY2025  strong absolute earnings for an NSE Emerge candidate.

• ROE 38.95%  exceptional return on equity demonstrating high capital efficiency in the diagnostics distribution and manufacturing business.

• YEIDA Medical Device Park location  purpose-built government infrastructure with single-window clearances, cluster benefits, and potential subsidies for medical device manufacturers.

• WHO pre-qualification ambition for export markets  if achieved, unlocks UN procurement, African government health programmes, and international tender markets far larger than domestic alone.

• M/s Haribhakti and Co. LLP (EY network) as statutory auditor  unusually strong governance quality for an NSE Emerge SME. Signals commitment to transparent financial reporting.

• 100% Fresh Issue with no OFS  all proceeds fund the business. Complete promoter alignment with the growth story.

• B2G (government) channel tailwind  Ayushman Bharat, PM-JAY diagnostic expansion, and state health programmes create large institutional demand for CDSCO-certified IVD manufacturers.

Analysis based on DRHP dated July 2025  |  Restated Financial Statements (Indian GAAP)  |  All figures in Rs. lakhs unless stated