Gujarat Kidney and Super Speciality’s stock opened higher on its first day, trading about 6% above the IPO price.
Key details of the listing
- Opening price: Rs 120.75 on BSE, Rs 120 on NSE
- Issue price: Rs 114 per share
- Total IPO size: Rs 251 crore (all fresh issue)
- Pre‑IPO valuation: roughly Rs 899 crore
How the IPO was received
The offer was subscribed 5.21 times overall. Retail investors showed the strongest interest, taking up the quota 19.04 times. Non‑institutional investors subscribed 5.73 times and qualified institutional buyers (QIBs) subscribed 1.06 times. Anchor investors had already put in Rs 100 crore, adding some institutional confidence.
Valuation snapshot
At the issue price, the company is priced at about 42 times its expected FY25 earnings and more than 22 times its book value. This reflects a premium that investors will be watching closely.
Company background
Founded in 2019, Gujarat Kidney runs seven multispecialty hospitals and four pharmacies across Gujarat, with around 340 beds. The firm focuses on kidney care and other super‑specialty procedures, using an asset‑light model that relies on leased facilities and acquisitions.
Financial performance
- Revenue in FY25 grew more than six‑fold.
- Profit after tax rose over four‑times.
- EBITDA margin stood above 41 %.
Analysts note that sustaining such margins could be challenging in a competitive hospital market.
Planned use of the IPO proceeds
The money will mainly fund expansion, including:
- Buying Parekhs Hospital in Ahmedabad.
- Setting up a new hospital in Vadodara.
- Other inorganic growth opportunities.
These moves aim to widen the company’s footprint, but execution risk remains.
What investors should watch
Key points to keep an eye on are:
- Whether the stock can maintain the premium as the company expands.
- How quickly the planned acquisitions are completed.
- The ability to keep margins high in a fragmented sector.
Remember, this is just my perspective, not a prediction. Do your own research before making any investment decisions.