Gujarat Kidney’s ₹251-crore IPO subscribed 5.21 times; retail portion booked 19x

The initial public offering (IPO) of Gujarat Kidney and Super Speciality, 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, exchange data showed on Wednesday.

The ₹250.80-crore 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.

The IPO, which was entirely a fresh issue of 2.20 crore equity shares, opened for subscription on December 22. Share allotment is expected to be finalised on December 26, with the stock scheduled to list on the BSE and NSE on December 30, 2025.

Ahead of the public issue, Gujarat Kidney and Super Speciality 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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