SME company Hemant Surgical Industries (HSIL) made a robust stock market debut, with its share price nearly doubling, zooming 99.5 per cent, to Rs 179.55, against its issue price of Rs 90 per shares on the BSE on Monday.
At 12:22 pm, the stock of the medical equipment & supplies company was locked in the 5 per cent upper circuit at Rs 179.55 on the BSE. It opened at Rs 171, the exchange data shows.
The equity shares of HSIL have been listed and admitted to dealings on the exchange in the list of 'MT' group of securities. BSE said that trades effected in this scrip will be in minimum market lot (i.e. 1,600 equity shares) and the same shall be modified by the exchange from time to time by giving prior market notice of at least one month.
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The BSE SME scrips, listed under the "M" group, are traded and cleared & settled on a net basis and for those listed under "MT" group, this is done on gross basis.
HSIL is into manufacturing, importing, assembling and marketing a comprehensive portfolio of medical equipments and disposables. The company’s product offerings cover a wide spectrum of equipments and disposables required for Renal Care, cardiovascular disease respiratory disease, Critical Care and Radiology and Surgical disposables. In addition company is also providing services for maintenance and running of dialysis centres.
HSIL raised around Rs 25 crore through the initial public offer. The company intends to utilize the proceeds of the issue to meet funding capital expenditure towards the installation of additional plant and machinery, funding to meet working capital requirements and general corporate purpose.
The medical devices sector in India comprises large multinationals, and small and midsized companies. This sector, which is growing faster amid the pandemic, offers great opportunities for domestic players, particularly engineering MSMEs, to further penetrate the global markets.
The government has commenced various initiatives to strengthen the medical devices sector, with emphasis on research and development (R&D) and 100 per cent FDI for medical devices to boost the market. India added significant production capacity for various critical care items such as PPE kits, surgical gloves, sanitisers and N95 masks, and emerged as a significant destination for manufacturing of healthcare products and services.
The Indian market for medical equipment is predicted to increase to $50 billion by 2025. As of 2020, the medical devices market is estimated to be at $12 billion in India.
Between 2020-25, diagnostic imaging is likely to expand at a CAGR of 13.5 per cent. India has a 75-80 per cent import dependency on medical devices, with exports of $2.53 billion in FY21, which is expected to increase at a CAGR of 41 per cent to reach $10 billion by 2025, Hem Securities said in the IPO note.