Nephrocare Health Services launched its IPO for bidding today, December 10. The company has set the price band between Rs 438 and Rs 460 per equity share. The company aims to raise Rs 871.05 crores from the public. The issue is a combination of 0.77 crore fresh shares amounting to Rs 353.40 crores and an offer for sale of 1.13 crore shares valued at Rs 517.64 crores.
Nephrocare Health IPO: GMP
The shares of Nephrocare Health aren’t attracting investors in the grey market as the GMP for the stock price remained nil.
Nephrocare Health IPO: Key details
The IPO will close on December 12. The allotment for the shares of Nephrocare Health is expected to be finalised on December 15, while the listing on the exchanges, BSE and NSE, is likely to be on December 17. Also, the issue includes a reservation of up to 83,532 shares for employees offered at a discount of Rs 41 to the issue price.
Nephrocare Health IPO: Lot size
A retail applicant needs to apply for at least one lot of 32 shares, amounting to Rs 14,720. The lot size investment for a small NII is 14 lots of 448 shares, aggregating to Rs 2.06 lakh, and for a big NII, it is 68 lots of 2,176 shares for Rs 10 lakh.
Nephrocare Health IPO: Book-runner and registrar
ICICI Securities is the book-running lead manager for the IPO, and KFin Technologies is working as the registrar of the issue.
Objective of IPO
The company will be using the Rs 129.11 crore for capital expenditure to open new dialysis clinics in India. Further, it will use Rs 136 crore for the payment of borrowings. Apart from that, the leftover will be used for the General Corporate Purpose.
Anand Rathi Research on Nephrocare Health IPO
“At the upper price band, the company is valued at a P/E of 60.2x with EV/EBITDA of 26x to its FY25 earnings and market cap of Rs 4,615.3 crore post issue of equity shares. We believe that the IPO is fully priced and recommend a ‘Subscribe-Long Term’ rating to the IPO,” said Anand Rathi Research in an IPO note.
About Nephrocare Health Services
Nephrocare Health Services is engaged in providing end-to-end dialysis care through a wide network of clinics across India and select international markets. The company offers services including diagnosis, haemodialysis, home and mobile dialysis, and wellness programs, supported by an in-house pharmacy.