Investors showed strong interest in the Gujarat Kidney and Super Specialty IPO, which closed with more than five times the shares on offer.
Key subscription numbers
The IPO was subscribed 5.21 times overall. Break‑down by investor type:
- Retail Individual Investors (RIIs): 19.04 times the 22 lakh shares allotted.
- Non‑Institutional Investors (NIIs): 5.73 times the 33 lakh shares.
- Qualified Institutional Buyers (QIBs): 1.06 times the 33 lakh shares.
Grey market premium
Current grey‑market premium (GMP) is about 2.2%, or roughly Rs 2.5 above the upper price band of Rs 114. This points to an expected listing price near Rs 116‑117 per share.
Company background
Gujarat Kidney runs seven multi‑speciality hospitals and four pharmacies in central Gujarat, focusing on renal care and other super‑speciality services. It has 490 beds (340 occupied) and a staff of around 720, including 89 doctors.
Financial performance
For FY 2025, the company reported:
- Total income: Rs 40.4 crore (up from Rs 5.48 crore in FY 2024).
- Profit after tax: Rs 9.5 crore (up from Rs 1.71 crore).
- EBITDA margin: ~41%.
- Return on capital employed: 37.65%.
Valuation snapshot
The IPO is priced at Rs 108‑114 per share, giving a pre‑issue P/E multiple of about 61.6× at the top of the band. This is higher than peers such as Yatharth Hospital, GPT Healthcare and KMC Specialty Hospitals, which trade at much lower multiples.
Use of proceeds
Funds will mainly go to expansion, including:
- Buying Parekhs Hospital in Ahmedabad.
- Increasing stake in Harmony Medicare, Bharuch.
- Setting up a new hospital in Vadodara.
- Purchasing advanced medical and robotic equipment.
- Partial debt repayment and general corporate needs.
Analyst view
Some brokers suggest caution because the valuation is aggressive and the company’s size makes execution riskier. They recommend that conservative investors wait for post‑listing price discovery before taking a position.
Bottom line
While the IPO attracted strong demand, especially from retail investors, the high P/E multiple and ambitious growth plans mean investors should weigh the upside against valuation and execution risks.
Disclaimer
This summary is for informational purposes only and does not constitute investment advice. Do your own research before making any decisions.