Dialysis services major Nephrocare Health Services Ltd is set to launch its initial public offering (IPO) on December 10, with the subscription window scheduled to close on December 12. The company has fixed the price band at ₹438–460 per share, valuing the healthcare provider at over ₹4,600 crore. Ahead of the IPO opening, Nephrocare mobilised ₹260 crore through anchor investors, according to a circular issued by the BSE.
The anchor book saw participation from a strong list of domestic and global institutions, including SBI Mutual Fund, ICICI Prudential MF, Fidelity Funds, DSP MF, Bandhan MF, Prudential Assurance Company, Eastspring Investments, Polar Capital Funds, Baroda BNP Paribas MF, SBI Life Insurance, and HDFC Life Insurance.
IPO Allocation Structure
Nephrocare has reserved:
- 50% of the issue for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for retail investors
Additionally, ₹35 million worth of shares have been earmarked for the company’s employees.
Key IPO Timelines
- Basis of allotment: December 15
- Refunds initiation: December 16
- Credit of shares to demat accounts: December 16
- Listing on BSE & NSE: December 17
Grey Market Premium (GMP)
The IPO’s GMP stands at ₹0, indicating that Nephrocare shares were trading at their issue price of ₹460 in the unofficial market, with neither premium nor discount, as per data from Chittorgarh.
Analyst Recommendations
Brokerage opinions appear mixed but generally positive for long-term investors:
- SBICAP Securities notes that the company is valued at 26.1x FY25 EV/EBITDA at the upper price band, aligning with industry peers. Given Nephrocare’s strong market position, expanding global reach and increasing penetration across India, the brokerage has issued a “SUBSCRIBE” recommendation.
- Swastika Investmart highlighted Nephrocare’s scale as Asia’s largest and the world’s fifth-largest dialysis service provider, acknowledging its steady growth in revenue and profit. However, the firm cautioned that higher finance costs weighed on profitability in H1 FY26. Swastika believes valuations appear elevated and recommends the IPO primarily for aggressive, long-term investors.
Subscription Status on Day 1
As of 10:15 AM on Day 1, the IPO was subscribed 1% overall:
- Retail investors: 2% subscribed
- NII segment: 1% subscribed
- QIBs: No bids yet
The company received 1,63,488 bids against 1,33,87,854 shares on offer, according to BSE data.
Issue Size and Objectives
The total IPO size is ₹871 crore, comprising:
- Fresh issue: ₹353.4 crore
- Offer for Sale (OFS): 1.12 crore shares worth ₹517.6 crore
Selling shareholders in the OFS include Investcorp Private Equity Fund II, Healthcare Parent, Investcorp Growth Opportunity Fund, Edoras Investment Holdings Pte, as well as International Finance Corporation and 360 One Special Opportunities Funds.
Nephrocare plans to utilise the fresh issue proceeds for:
- ₹129.1 crore to set up new dialysis centres across India
- ₹136 crore for debt repayment
- The remainder for general corporate purposes
Lead Managers
The IPO is being managed by ICICI Securities, Ambit, IIFL Capital Services, and Nomura Financial Advisory and Securities (India).
Kfin Technologies Ltd is the registrar to the issue.