Gujarat Kidney listing: Year’s last IPO falls 8% on debut day

The initial public offering (IPO) market wrapped up 2025 on a weak note, with Gujarat Kidney and Super Speciality Ltd (GKSL), the year’s final public issue, delivering a disappointing debut on the exchanges. The shares of Gujarat Kidney closed at ₹104.65 on the BSE, down 8.2% against its issue price of ₹114, after witnessing volatility during the session. The market capitalisation stood at ₹825.09 crore at the end of first day of trade, with 21.13 lakh shares changing hands over the counter.

The shares of Gujarat Kidney and Super Speciality Ltd (GKSL) listed at ₹120.75 on the BSE, a premium of 5.9% over the issue price. On the NSE, the stock debuted at ₹120, up 5.2% from the IPO price. Extending the opening gains, the stock rose 8.1% to an intraday high of ₹123.25 in early trade, before reversing gains and falling as much as 16.4% from the day’s high to touch a low of ₹103 on the BSE.

Meanwhile, the BSE Sensex and NSE Nifty closed flat with a negative bias.

The listing of Gujarat Kidney shares was far better than Street expectations as the stock was commanding grey market premium (GMP) of ₹1.5 apiece, indicating listing at around ₹115.5, up 1.32%.

The ₹250.80-crore IPO of Gujarat Kidney and Super Speciality, which was entirely a fresh issue of 2.20 crore equity shares, opened for subscription between December 22-24. The IPO, which operates a network of mid-sized multi-specialty hospitals and pharmacies across central Gujarat, was subscribed 5.21 times on the final day of bidding.

The issue received bids for 6.89 crore shares worth ₹786.25 crore against an offer size of 1.32 crore equity shares, priced at the upper end of the price band at ₹114 per share.

Retail investors led the demand, with their portion subscribed 19.04 times. The non-institutional investors (NII) segment was booked 5.73 times, while the qualified institutional buyers (QIB) category was subscribed 1.06 times. The issue allocation comprised 75% for QIBs, 15% for NIIs, and 10% for retail investors.

Ahead of the public issue, Gujarat Kidney raised ₹100.01 crore from anchor investors by allotting 87.73 lakh equity shares at ₹114 apiece. Key anchor investors included Venus Investments VCC – Venus Stellar Fund, Khandelwal Finance Private Limited, Craft Emerging Market Fund PCC – Citadel Capital Fund, Nexus Global Opportunities Fund, Arnesta Global Opportunities Fund PCC – Arnesta Global Fund 1, Zeta Global Funds – Zeta Series C Fund PC, Innovative Vision Fund, Religo Commodities Ventures Trust, and Sunrise Investment Trust.

The company operates seven hospitals and four in-hospital pharmacies across four cities in Gujarat, offering secondary and tertiary healthcare services.

Gujarat Kidney plans to deploy the IPO proceeds towards expansion, acquisitions, and balance sheet strengthening. Of the total, ₹77 crore will be used for the proposed acquisition of Parekhs Hospital in Ahmedabad, while ₹12.40 crore has been earmarked towards part-payment for Ashwini Medical Centre, which has already been acquired. The company will also invest ₹30.10 crore to set up a new hospital in Vadodara and ₹6.83 crore to purchase robotics equipment for its Vadodara facility.

In addition, ₹1.20 crore will be used to repay or prepay certain secured borrowings. The remaining funds will support inorganic growth through unidentified acquisitions, general corporate purposes, and the acquisition of additional shareholding in its subsidiary, Harmony Medicare Private Limited, based in Bharuch.

On the financial front, the company reported strong growth in FY25. Total income rose to ₹40.40 crore from ₹5.48 crore in FY24, while profit after tax increased to ₹9.50 crore from ₹1.71 crore. EBITDA jumped to ₹16.55 crore in FY25 from ₹1.95 crore a year earlier, and net worth improved to ₹25.71 crore as of March 31, 2025, compared with ₹10.80 crore a year ago.

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