The primary market in India welcomed a new healthcare player this Monday as Gujarat Kidney and Super Speciality's initial public offering (IPO) opened for public subscription. The company aims to raise ₹251 crore through this fresh issue of equity shares, marking a significant step in its regional expansion plans.
IPO Details and Fund Allocation
The bidding window for the Gujarat Kidney IPO commenced on December 22 and will remain open until December 24. Investors can bid for shares within a price band of ₹108 to ₹114 per equity share. The offering consists entirely of a fresh issue of up to 2.2 crore shares, with no existing shareholders selling their stake.
The company has outlined clear objectives for the capital it intends to raise. A significant portion will be directed towards strategic acquisitions, including taking over Parekhs Hospital in Ahmedabad and making a part-payment for Ashwini Medical Centre. Furthermore, the proceeds will finance the establishment of a new hospital in Vadodara and the purchase of advanced robotic equipment for that facility.
Beyond growth-oriented spending, the funds will also be used for repaying debt, pursuing future inorganic growth opportunities, and covering general corporate expenses.
Strong Anchor Investor Interest and Grey Market Sentiment
Ahead of the public opening, the company successfully secured commitments of slightly over ₹100 crore from anchor investors. This segment saw participation from ten entities, including notable names like Venus Investments, Khandelwal Finance Pvt Ltd, Nexus Global Opportunities Fund, and Sunrise Investment Opportunities Fund.
Market sentiment, as reflected in the unofficial grey market, appears positive. Sources indicate the Gujarat Kidney IPO GMP (Grey Market Premium) is around ₹7 today. This premium suggests the shares are commanding a higher price in unofficial trading channels. If this trend holds, the estimated listing price could be around ₹121, representing a potential 6% gain over the upper end of the IPO price band.
About Gujarat Kidney and Super Speciality
Gujarat Kidney is a prominent regional healthcare provider operating in central Gujarat. Its business model revolves around a network of mid-sized, multi-speciality hospitals that offer secondary and tertiary care services. The company's current footprint includes seven hospitals with a total bed capacity of 490.
For the financial year ended March 2025, the company demonstrated its financial performance with revenue from operations of ₹40.24 crore and a net profit of ₹9.5 crore. This IPO represents a pivotal move to scale its operations and consolidate its presence in the region's growing healthcare sector.
