The Gujarat Kidney and Super Specialty IPO has opened for public subscription and has witnessed a strong investor response on its first day, with a 90% subscription rate. The issue has received bids for 1.18 crore shares against the total offer size of 1.32 crore shares.
The Rs 251 crore IPO consists entirely of a fresh issue and is priced in the range of Rs 108 to Rs 114 per share. At the upper end of the price band, the company commands a pre-IPO market capitalisation of approximately Rs 898.8 crore.
As of 2:30 pm, the Retail Individual Investors (RII) segment has shown particularly strong demand, receiving bids for 3.54 times the 22 lakh shares reserved for this category. The Non-Institutional Investors (NII) segment has seen decent interest, with bids amounting to 1.17 times the 33 lakh shares on offer.
The Gujarat Kidney IPO is currently commanding a premium of Rs 3 in the grey market, which translates to about a 2.63% gain over the upper price band of Rs 114. Based on this premium, the IPO is expected to list at around Rs 117 per share.
Gujarat Kidney operates seven multi-speciality hospitals and four pharmacies across central Gujarat, with a focus on renal sciences and super-speciality care. The company has a total bed capacity of 490 beds and offers secondary and tertiary healthcare services.
The company has reported a sharp 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. Profit after tax increased to Rs 9.5 crore from Rs 1.71 crore, with EBITDA margins standing at about 41% in FY25.
The issue is valued at a pre-IPO price-to-earnings multiple of about 61.6 times, which is higher than most listed hospital peers. This has raised concerns about sustainability and valuation risks. Analysts have flagged execution challenges given the company’s relatively smaller scale and aggressive expansion plans.
Some brokerages have advised investors to stay cautious, citing stretched valuations and limited near-term upside. Conservative and medium-term investors may be better off waiting for clearer post-listing price discovery before taking exposure.
Remember, this is a perspective, not a prediction. Do your own research and consider your own risk tolerance before making any investment decisions.
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