The Gujarat Kidney and Super Speciality IPO has opened for subscription, with a Rs 251 crore issue priced between Rs 108-114 per share. This multi-speciality hospital chain operates seven hospitals and four pharmacies across central Gujarat, focusing on renal sciences and super-speciality care.
About the Company
Gujarat Kidney has a total bed capacity of 490 beds, with an operational capacity of 340 beds, offering secondary and tertiary healthcare services including urology, orthopaedics, cardiology, gynaecology, and critical care. As of June 2025, the hospital network employed 89 doctors, over 330 nurses, and more than 300 support staff.
Financial Performance
The company has reported a significant jump in earnings over the past two years, with total income rising to Rs 40.4 crore in FY25 from Rs 5.48 crore in FY24, and profit after tax increasing to Rs 9.5 crore from Rs 1.71 crore. EBITDA margins stood at about 41% in FY25, reflecting improved operating leverage.
IPO Details
The IPO is entirely a fresh issue, with the proceeds to be used largely for inorganic growth and capacity expansion, including the acquisition of Parekhs Hospital in Ahmedabad and setting up a new hospital in Vadodara. A small portion of the funds will also go towards debt repayment and general corporate purposes.
Investment Considerations
While the healthcare sector remains structurally attractive in the long term, analysts have flagged valuation risks and execution challenges given the company's relatively smaller scale and aggressive expansion plans. The issue is valued at a pre-IPO price-to-earnings multiple of about 61.6 times, higher than most listed hospital peers.
Should you subscribe to the Gujarat Kidney IPO? Remember, this is perspective, not prediction. Do your own research and consider your investment goals and risk tolerance before making a decision.
- The company's financial performance has been strong, with significant revenue and profit growth.
- The healthcare sector is attractive in the long term, with growing demand for quality healthcare services.
- However, the company's valuation is relatively high, and execution risks are associated with its aggressive expansion plans.