Gujarat Kidney and Super Speciality Hospital made a positive market debut, with shares listing at a premium of nearly 6% against the issue price. The ₹251-crore Initial Public Offering (IPO) had concluded with strong investor interest, particularly from retail participants, achieving 5.21 times oversubscription.

Market Debut Performance

The healthcare company's shares commenced trading with encouraging performance across both exchanges:

IPO Subscription Performance

The IPO demonstrated varied interest across investor categories during the subscription period:

Issue Structure & Fund Utilization

The IPO was entirely a fresh issue with specific deployment plans for the raised capital:

Proceeds from the fresh issue will support strategic expansion initiatives including acquisition of Parekhs Hospital in Ahmedabad, part-payment for the already acquired Ashwini Medical Centre, setting up a new hospital in Vadodara, purchasing robotic equipment, debt repayment, funding inorganic growth through unidentified acquisitions, and general corporate purposes.

Company Overview & Operations

Gujarat Kidney and Super Speciality operates as a regional healthcare company in central Gujarat, running a chain of mid-sized multi-specialty hospitals providing integrated healthcare services with focus on secondary and tertiary care.

Financial Performance

The company has demonstrated substantial financial growth:

Market Analysis

The positive listing performance, contrasting with the earlier flat grey market premium, reflects investor confidence in the healthcare sector. The strong retail subscription of 19.04 times demonstrates growing appetite for healthcare stocks, while the measured institutional participation indicates selective approach on valuations. At the current market price, the company trades at a premium valuation for a regional hospital chain in the competitive healthcare sector.

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.

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.

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.

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.

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.