DOCMODE HEALTH TECHNOLOGIES LIMITED - IPO ANALYSIS

Summary

The ‘DocMode Health Technologies Limited’ officially issued its Prospectus on 18th January, 2024 mentioning the important details regarding its recent Initial Public Offering (hereinafter referred as IPO) which has started from January 24, 2024 and closes on 29th January, 2024. In this article we will look at some Important Financial Details of the company and the IPO, which investors need to consider before investing in a right company.

INITIAL PUBLIC OFFERNING | DOCMODE HEALTH TECHNOLOGIES LIMITED

The ‘DocMode Health Technologies Limited’ officially issued its Prospectus on 18^th January, 2024 mentioning the important details regarding its recent Initial Public Offering (hereinafter referred as IPO) which has started from January 24, 2024 and closes on 29^th January, 2024. In this article we will look at some Important Financial Details of the company and the IPO, which investors need to consider before investing in a right company.

ABOUT THE COMPANY

As per the details of the company present on its official website, the company was incorporated in the year 2017 as a private company with the name ‘Docmode Health Technologies Private Limited’ and subsequently, in the December 2022 the company decided to go public and changed its name to ‘Docmode Health Technologies Limited’.

BUSINESS OPERATIONS

With both online and offline formats, DocMode Health Technologies Limited provides integrated learning solutions to learners and healthcare professionals globally. Direct engagement is fostered through conferences and workshops that are part of the offline learning concept. In the meanwhile, the company's main focus is on the tech-driven online approach, which offers a personalised and self-paced learning environment. Content that has been selected by an internal team or in partnership with associations, medical facilities, and subject matter experts falls under this category. The platform makes networking, collaboration, and knowledge sharing easier. A variety of tools are available through the online learning approach, including workshops, recorded films, live conferences, and notes. Through panel discussions and workshops, the firm goes above and beyond traditional learning to foster inter-professional, cross-industry learning. Healthcare practitioners use performance assessment tools to improve their clinical knowledge in day-to-day patient care.

BOARD OF DIRECTOR AND PROMOTERS OF THE COMPANY

The company’s management includes the following members-

01.  Paulson Paul Thazhathedath as Managing Director of the company.

02.  Monina Elizabeth Lewis, Hiral Rushang Gandhi as Non-Executive Directors of the company.

03.  Hans Albert Lewis acting as Whole-time Director of the company.

04.  Sujit Nityanand Chakraborty, Nilay Shivnarayan Sharma, Krushang Shah acting as an Independent Non-Executive Directors of the company.

KEY FINANCIAL DETAILS OF THE COMPANY

In the fiscal year 2022-23, the Company has achieved a noteworthy revenue from its operations of Rs. 3,287.84 (in Lakhs), and generated a revenue of Rs. 2,360.42 (in Lakhs) till 30^th September, 2023. While securing a profit of Rs. 194.82 (in Lakhs) for the year 2022-23. For the period ending 31 March, 2022 the company has earned a profit of Rs. 92.20 (in Lakhs). And till 30 September, 2023 the company has earned a profit of Rs. 136.01 (in Lakhs).

To make a wise investment choice, we will delve into various financial ratios for a comprehensive assessment of the company's financial condition and performance.

DETAILS OF THE IPO

The present public offer of upto 849,600 Equity Shares includes a Fresh issue of 849,600 Equity shares and an offer for sale under which 403,200 Equity shares are reserved for NIIs and 403,200 Equity Shares are reserved for Retail Investors, 43,200 Equity shares are reserved for Market Makers and the shares are there to be subscribed at the price of ₹ 79 Per Share.

Some Important details with respect to the Application Size for Qualified Institutional Bidder and Non-Institutional Investor has been Summarised in the following table:

OBJECTIVES OF THE IPO

The objective of the issue of the IPO is for (i) Purchase of IT infrastructure and operating system; (ii) Meeting the working capital expenses; (iii) meeting the general corporate expenses of the company.

RISKS INVOLVED

Being dependent on its partnerships with healthcare experts, DocMode Health Technologies Limited may be exposed to hazards. If the firm does not regularly engage these professionals—doctor, physician, surgeon, and other allied healthcare practitioners listed on their platform—it may have an adverse effect on the company's commercial and financial success. The efforts, skills, and knowledge of their internal staff have a major role in how well sales, content production, and general operations function. The company's capacity to draw in and keep medical specialists from a wide range of specialisations is directly related to the effectiveness of its commercial strategy. Retaining current professionals and learners while drawing in new ones depends on upholding a high standard of service quality and a great reputation. The business of the company might be negatively impacted by any failure in these areas.

Additionally, a major risk to the company's implementation timetable is late orders or acquisition of operating systems and IT infrastructure. Although quotes from third parties have been received, the procurement procedure is still in progress, and any more delays might have an effect on business operations. Furthermore, both the federal and state governments have the ability to alter the regulatory environment in which DocMode works. Future changes or the adoption of new laws may have undetermined and detrimental repercussions on the company. The business must navigate a regulated environment, and there are inherent risks to its future operations and growth potential from regulatory uncertainty.

ANALYSIS AND RECOMMENDATION

With its recent initial public offering (IPO), DocMode Health Technologies Limited demonstrated strong financial results and well-thought-out business practices. The company's financials are strong, showing a successful history and an impressive revenue of Rs. 3,287.84 Lakhs in FY 2022–2023. The company's stability is further demonstrated by its financial statistics, which include a robust current ratio of 1.58, a return on equity of 80.03%, and a net capital turnover ratio of 4.71.

Offering up to 849,600 Equity Shares, the IPO seeks to raise money for general business expenses, working capital needs, and the acquisition of IT infrastructure. The company's reliance on the involvement of healthcare professionals, possible delays in the procurement process, and regulatory uncertainty are all highlighted in the risk analysis. DocMode Health Technologies Limited looks to be well-positioned for development given its solid financials, variety of learning options, and IPO goals. Given the company's creative learning method, sound financial stability, and wise deployment of capital for future development, investors could find this IPO interesting. However, any hazards need to be well watched, particularly with regard to the regulatory environment and procurement delays.

IMPORTANT DATES