Kanone Technologies Ltd. IPO

Avience Biomedicals

• Avience Biomedicals is coming out with an initial public offering (IPO) of 14,53,800 shares in a price band of Rs 196-208 per equity share. 
• The issue will open on June 18, 2026 and will close on June 22, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 19.60 times of its face value on the lower side and 20.80 times on the higher side.
• Book running lead manager to the issue is Fintellectual Corporate Advisors.
• Compliance officer for the issue is Manoj Kumar.

Profile of the company

Avience Biomedicals is a medical consumable company dedicated to manufacturing of Vitro-Diagnostic (IVD) products and medical devices in Noida, Uttar Pradesh, India. It commenced its journey by producing essential diagnostic kits like Viral Transport Media (VTM), Covid, Human Immunodeficiency Viruses (HIV), HBs AG, Malaria, Dengue and others aimed at aiding medical institutions with affordable and good-quality solutions. The company has expanded its product range from IVD rapid test kits to include a comprehensive line of medical devices such as Serology products, Biochemistry Analyser and Biochemistry Reagents, showcasing a dedication to addressing various healthcare needs. Being majorly into B2B and B2C market, its products cater to Pathology Labs, Microbiology Labs, Hospitals, and Research Centers nationwide as well as overseas. In addition to manufacturing, the company also act as distributors and traders of medical equipment.

The company operates from its manufacturing facility located in Uttar Pradesh. This facility is equipped with advanced processing capabilities and staffed with industry experts. This proactive approach empowers medical professionals with essential tools to combat diseases effectively, particularly emerging viruses. 

As an ISO 9001:2016, ISO 13485, ZED MSME Gold and Good Manufacturing Practice (GMP) certified organization, it adheres to a robust Quality Management System. Its dedication lies in providing work of such quality that aligns with project standards and specifications for materials, workmanship, schedules, and public service. It is committed to profitability and competitiveness while ensuring continual improvement through quality processes overseen by its management team. Its quality control process guarantees high standards of safety and environmental protection, meeting client expectations and adhering to their defined standards and specifications. Its commitment to perfection and quality has been evident through its rigorous adherence to regulatory norms established by the Central Drugs Standard Control Organization (CDSCO), ensuring that its production line operates at its performance.

Proceed is being used for:

• Part finances the capital expenditure towards setting up of a new manufacturing unit at industrial plot no. 70, Sector 28 in the Medical Device Park under the Yamuna Expressway Industrial Development Authority (YEIDA), Gautam Buddha Nagar, Uttar Pradesh 
• Funding the working capital requirement 
• Meeting out the general corporate purposes

Industry overview

India’s healthcare and medical device sectors have grown rapidly over the past decade, positioning the country as the fourth-largest medical devices market in Asia and among the top 20 globally. The industry produces a wide range of products, from consumables such as syringes and catheters to high-value implants like cardiac stents, intraocular lenses, and orthopaedic devices. While India still imports 70-80% of its medical devices, this gap offers a significant growth opportunity. Both domestic and global manufacturers are investing to meet rising demand, supported by government policies that have recognized medical devices as a sunrise sector since the launch of Make in India in 2014. The medical devices sector in India is an essential and integral constituent of the Indian healthcare sector, particularly for the prevention, diagnosis, treatment and management of all medical conditions, diseases, illnesses, and disabilities.

India is among the top 20 markets for medical devices worldwide. The medical devices sector in India comprises large multinationals and small and midsized companies. The current market size of the medical devices industry in India is estimated at $15.35 billion in 2023 and is expected to grow to $20.51 billion by 2029 with a CAGR of 5.35%. India is the fastest growing medical devices market amongst the emerging markets. The medical devices industry in India consists of large multinationals as well as small and medium enterprises (SMEs) growing at an unprecedented scale.

The Government of India has taken several steps to ensure the growth of a vibrant ecosystem of medical devices manufacturing in India. To enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector, a scheme called ‘Production Linked Incentive Scheme for Pharmaceuticals’ has been approved by the Government of India on March 24, 2021. The guidelines of the scheme were issued on June 1, 2021. The scheme covers Invitro diagnostic devices amongst other pharmaceutical goods. 

Pros and strengths

Innovative product portfolio: The company is proud to offer an extensive portfolio of IVD Rapid Tests and advanced medical devices designed to address healthcare challenges today. From high-performance diagnostic tests for infectious diseases to haematology and biochemistry analyzers, it is committed to bringing innovative products to market that improve patient outcomes. Additionally, as a trusted channel partner for Mindray, it extends its portfolio to include their world-class biochemistry analyzers and haematology equipment, further enriching its range of solutions.

Strong regulatory compliance: Its products adhere to some of the most rigorous international quality and safety standards, including ISO 13485 for medical device quality management, ISO 9001 for overall organizational quality management, CE marking for compliance with European Union health, safety, and environmental protection regulations, and GMP (Good Manufacturing Practices) for consistent manufacturing processes.

Talented workforce: Its success is driven by a dedicated and highly skilled workforce, comprised of experts in medical device manufacturing, quality assurance, regulatory affairs, and technical support. Each team member is committed to advancing healthcare through innovation and operational excellence. From engineers and product designers to regulatory specialists and customer support professionals, its employees are at the heart of everything it does. It invests in continuous training, ensuring that its team stays at the forefront of technological advancements and better practices.

Risks and concerns

Revenue dependence on top customers: The company is dependent on certain customers for a portion of its revenues. For the period ended January 31, 2026, and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, its top ten customers accounted for around 46.44%, 56.82%, 69.12% and 74.79%, respectively, of its total revenue from operations. The loss of any of its major customers due to any adverse development or significant reduction in business from its major customers may adversely affect its business, financial condition, results of operations and future prospects.

Dependence on suppliers for medical devices: The company relies on suppliers for medical devices and equipment manufacturers for its trading goods, and also face risks in sourcing raw materials and components from third parties for the manufacturing and assembly of its medical equipment. Any failure by its suppliers to meet agreed timelines, whether due to regulatory issues, financial difficulties, or other factors, may lead to delays, increased costs, payment issues, or damage to its reputation, all of which could adversely impact its business, operations, and financial condition.

A large portion of revenue is derived from trading sector: Its business derives a significant portion of its revenue from the trading sector, and any potential instability in this area could pose a risk to its overall performance. For the period ended January 31, 2026, and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, trading activities contributed around 68.44%, 72.31%, 79.60% and 83.81%, respectively, of total revenue, while manufacturing activities contributed around 30.70%, 27.32%, 20.40% and 16.19%, respectively. Any adverse effects experienced within this activity could also have a detrimental impact on its business.

Outlook

Avience Biomedicals is primarily engaged in the business of manufacturing and selling of medical consumables. Its diversified product portfolio can primarily be divided into two main categories -- Manufacturing of Medical Consumables and Distribution of branded equipment. The company aims at creating solutions that are on cutting edge with the latest advancements in the globe, having wide application and that provide cost-effective solutions for the rural and the needy. On the concern side, its revenue is significantly concentrated in its top five states, contributing a major portion of its total revenue. Any adverse economic, regulatory, or operational developments in these key regions could materially impact its business performance, revenue generation, and overall financial results. Further, it relies on limited suppliers for its products, loss of these suppliers may have an adverse effect on its business, results of operations and financial conditions.

The company is coming out with a maiden IPO of 14,53,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 196-208 per equity share. The aggregate size of the offer is around Rs 28.49 crore to Rs 30.24 crore based on lower and upper price band respectively. On performance front, its total revenue increased by 88.60% to Rs 4,596.74 lakh for the financial year 2024-25 from Rs 2,437.27 lakh for the financial year 2023-24. Net profit after tax has increased by 237.75% from Rs 214.11 lakh in Fiscal 2024 to profit of Rs 723.18 lakh in the Fiscal 2025.

Meanwhile, it develops a manufacturing facility that meets WHO and US FDA standards for medical device production. Incorporate modern technology, automation, and quality control measures to optimize efficiency and ensure compliance. Optimize its supply chain to ensure timely delivery of raw materials and components to the new plant. Consider establishing strategic partnerships with suppliers and logistics providers to enhance efficiency and reliability. Continuously monitor and evaluate the performance of the new plant, identifying opportunities for optimization and innovation. Foster a culture of continuous improvement and adaptability to maintain a competitive edge in the dynamic medical device industry.