Nephrocare Health Services IPO Receives Modest Subscription

IPO Subscription Overview

The initial public offering of Nephrocare Health Services, India’s leading dialysis services provider, witnessed a 12 per cent subscription on its opening day Wednesday, reflecting cautious investor sentiment in the healthcare sector. The Rs 871-crore public offering received bids for 16,58,560 shares against the total 1,33,87,854 shares on offer, according to NSE data.

Category-wise Subscription Analysis

The subscription pattern revealed interesting investor dynamics across different categories. The retail individual investors (RIIs) portion demonstrated relatively stronger interest with 20 per cent subscription, indicating confidence among small investors in the dialysis services market potential. However, the Non-Institutional Investors (NIIs) quota achieved only 9 per cent subscription, suggesting hesitation among high-net-worth individuals and corporate entities.

Most notably, qualified institutional buyers (QIBs) displayed minimal participation, bidding for merely 448 shares from their reserved quota of 36,78,793 shares. This subdued institutional response may reflect broader market conditions or sector-specific concerns, though anchor investor participation told a different story.

Anchor Investment and Secondary Transactions

Prior to the public offering, Nephrocare Health Services, operating under the well-recognized NephroPlus brand, successfully garnered Rs 260 crore from anchor investors on Tuesday. This strong anchor book provides a foundation of institutional support and validates the company’s valuation expectations.

Pre-IPO Secondary Deals

The IPO launch followed secondary transactions worth Rs 136 crore that concluded on December 8-9, providing partial exit opportunities to early-stage investors. These transactions involved prominent investors including:

• Quadria Capital
• Bessemer Venture Partners
• Investcorp
• Promoter-linked entities

Strategic Pre-IPO Investors

Several marquee investors demonstrated confidence in NephroPlus by participating through secondary transactions ahead of the public offering:

• Think Investments’ TIMF Holdings
• Axis Max Life Insurance
• Enam’s Akash Bhanshali
• Malabar India Fund
• Motilal Oswal India Excellence Fund

These institutional endorsements underscore the company’s strong market positioning and growth trajectory in India’s expanding dialysis services sector.

IPO Structure and Pricing Details

The Hyderabad-based healthcare company has structured its IPO with a three-day subscription window concluding on December 12. The company established a price band of Rs 438-460 per share, valuing the enterprise at over Rs 4,600 crore at the upper price limit.

Issue Composition

The IPO comprises two components reflecting both growth capital requirements and investor exit provisions:

1. Fresh Issue: Rs 353.4 crore worth of new shares
2. Offer For Sale (OFS): 1.12 crore existing shares valued at Rs 517.6 crore

The OFS component enables partial exit for multiple stakeholders, including:

Promoters:

• Investcorp Private Equity Fund II
• Healthcare Parent
• Investcorp Growth Opportunity Fund
• Edoras Investment Holdings Pte

Other Shareholders:

• Investcorp India Private Equity Opportunity
• International Finance Corporation
• 360 One Special Opportunities Funds

Fund Utilization Strategy

The company has outlined clear deployment plans for the Rs 353.4 crore fresh issue proceeds, focusing on growth and financial optimization:

Expansion Initiatives

Rs 129.1 crore will be allocated toward establishing new dialysis clinics across India, strengthening the company’s extensive network and improving accessibility to kidney care services in underserved markets.

Debt Reduction

Rs 136 crore will be directed toward debt repayment, enhancing the company’s balance sheet strength and reducing financial leverage. This strategic move should improve profitability margins and financial flexibility for future growth.

Corporate Purposes

The remaining funds will support general corporate requirements, including working capital optimization, technology upgrades, and operational enhancements.

Company’s Market Position and Expansion

NephroPlus, incorporated in 2009, has established itself as a dominant player in the dialysis services industry. As of September 30, 2025, the company operates a global network of 519 clinics, including 51 international facilities across the Philippines, Uzbekistan, and Nepal.

International Expansion

In fiscal 2024, NephroPlus expanded into the Saudi Arabia market through a strategic joint venture with Arabian International Healthcare Holding Company, part of the Al Faisaliah Group. Additionally, the company operates a 165-bed dialysis clinic in Tashkent, Uzbekistan, recognized as the largest dialysis clinic globally, demonstrating its operational scale and expertise.

India Market Leadership

NephroPlus holds the distinction of being India’s most widely distributed dialysis network, with an extensive presence across:

• 288 cities
• 21 States
• 4 Union Territories

Significantly, 77 per cent of clinics are strategically located in tier II and tier III cities, addressing critical healthcare gaps in smaller urban centers and improving kidney care accessibility for underserved populations.

Financial Performance Highlights

The company’s financial trajectory demonstrates strong operational execution. In FY25, NephroPlus posted:

• Revenue from operations: Rs 756 crore
• Profit after tax: Rs 67 crore

These figures reflect healthy profitability metrics and revenue growth, supporting the company’s premium valuation and expansion plans.

Market Debut Schedule

Following the IPO closure on December 12, NephroPlus will make its stock market debut on December 17, allowing investors to trade shares and the market to establish price discovery based on operational performance and growth prospects.

IPO Management Team

The public offering is managed by reputed financial institutions serving as book-running lead managers:

• ICICI Securities
• Ambit
• IIFL Capital Services
• Nomura Financial Advisory and Securities (India) Private Ltd

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