Gujarat Kidney Shares List Over 5% Premium Despite Zero Grey Market Signals
Gujarat Kidney and Super Speciality made a successful market debut with shares listing at over 5% premium despite zero grey market signals. The healthcare company's ₹250.80-crore IPO was subscribed 3.71 times, with proceeds allocated for hospital acquisitions and expansion across Gujarat's healthcare sector.
*this image is generated using AI for illustrative purposes only.
Gujarat Kidney and Super Speciality made a positive market debut today, with shares listing at over 5% premium over the IPO price despite earlier grey market signals indicating a flat listing. The stock opened at ₹120.75 on BSE and ₹120.00 on NSE, compared to the issue price of ₹114.00 per share.
Strong Listing Performance
The healthcare company's shares defied grey market expectations, which had indicated zero premium ahead of listing. The positive opening provided gains for IPO investors who had subscribed to the ₹250.80-crore public offering.
| Exchange: | Opening Price | Premium |
|---|---|---|
| BSE: | ₹120.75 | 5.92% |
| NSE: | ₹120.00 | 5.26% |
| Issue Price: | ₹114.00 | - |
At the issue price, Gujarat Kidney and Super Speciality was valued at approximately 42 times post-IPO earnings and over 22 times book value, with a pre-IPO market capitalisation of around ₹898.80 crore.
IPO Structure and Management
The public offering consists entirely of a fresh issue of 2.20 crore equity shares with a price band set between ₹108 to ₹114 per share. The IPO concluded with robust investor participation, achieving 3.71 times overall subscription during the bidding period.
| IPO Details: | Specifications |
|---|---|
| Issue Size: | 2.20 crore equity shares |
| Price Band: | ₹108-₹114 per share |
| Overall Subscription: | 3.71x |
| Book Running Lead Manager: | Nirbhay Capital Services Pvt. Ltd. |
| Registrar: | MUFG Intime India Ltd. |
The company also raised ₹100.00 crore from anchor investors ahead of the public issue, providing institutional support to the offering.
Company Operations and Capacity
Founded in 2019, Gujarat Kidney and Super Speciality operates seven multi-speciality hospitals and four pharmacies across Gujarat, with a total bed capacity of 490 beds. The company has established a strong presence in renal sciences and super-speciality procedures, following an asset-light model focused on leased facilities and inorganic expansion.
| Operational Metrics: | Details |
|---|---|
| Hospitals: | 7 multi-speciality facilities |
| Pharmacies: | 4 outlets |
| Total Bed Capacity: | 490 beds |
| EBITDA Margin: | Above 41% |
The company has demonstrated strong financial performance with revenue surging more than six-fold and profit after tax rising over four times, aided by higher occupancy rates and improving margins.
Fund Utilisation Strategy
The IPO proceeds are earmarked for strategic expansion and acquisitions to strengthen the company's market position in Gujarat's healthcare sector. Key allocations include the acquisition of Parekhs Hospital in Ahmedabad and setting up a new hospital facility in Vadodara.
| Purpose: | Amount (₹ crore) |
|---|---|
| Parekhs Hospital Acquisition (Ahmedabad): | 77.00 |
| New Hospital Setup (Vadodara): | 30.00 |
| Additional Harmony Medicare Stake: | 10.78 |
| Ashwini Medical Centre Payment: | 12.40 |
| Robotic Equipment Procurement: | 6.80 |
| Debt Repayment: | 1.20 |
The remaining funds will support inorganic growth initiatives, acquisition of additional shares in subsidiary Harmony Medicare, and general corporate purposes, providing a clear growth runway for the healthcare services provider.
18
