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Key Takeaways
- Gujarat Kidney and Super Speciality shares debuted with a 6% listing gain.
- The IPO was subscribed 5.21 times, with strong retail investor participation.
- Retail investors subscribed their quota 19.04 times.
- IPO proceeds will fund expansion, acquisitions, and new hospital setup.
- Company reported improved financial performance in FY25 with higher revenue and profit.
Gujarat Kidney and Super Speciality Limited made a positive start on the stock exchanges on Tuesday, December 30, with its shares listing at a premium to the issue price. The stock debuted at ₹120.75 on the BSE and ₹120 on the NSE, translating into gains of around 6% over the IPO price of ₹114.
In the grey market ahead of listing, the mid-sized multi-speciality hospital operator had been trading at a modest premium of about 1.3%, indicating cautious optimism among investors.
The ₹251-crore initial public offering, which was open between December 22 and December 24, received decent investor interest, largely driven by strong participation from retail investors, while institutional demand remained relatively subdued.
Overall, the IPO was subscribed 5.21 times. Retail investors were the biggest contributors, subscribing their quota 19.04 times. The non-institutional investor segment saw subscriptions of 5.73 times, whereas the qualified institutional buyers’ portion (excluding anchor investors) was subscribed 1.06 times.
Prior to the issue opening, the company had raised ₹100 crore from anchor investors, accounting for nearly 40% of the total issue size.
The IPO was offered in a price band of ₹108–₹114 per share, with a face value of ₹2. At the upper end of the band, the company’s post-listing market capitalisation is estimated at around ₹899 crore. The issue consisted entirely of a fresh issuance of 2.2 crore equity shares, with no offer-for-sale component.
Proceeds from the issue will be used primarily for expansion and acquisitions. Around ₹77 crore has been earmarked for the acquisition of Parekhs Hospital in Ahmedabad, while ₹10.78 crore will be utilised to increase the company’s stake in its subsidiary, Harmony Medicare in Bharuch. An additional ₹12.4 crore will go towards part-payment for the previously acquired Ashwini Medical Centre.
The company also plans to invest ₹30 crore in setting up a new hospital in Vadodara, ₹6.8 crore towards the purchase of robotic medical equipment, and ₹1.2 crore for repayment of certain borrowings. The balance funds will be deployed for inorganic growth initiatives and general corporate purposes.
Financially, Gujarat Kidney reported revenue of ₹15 crore and a net profit of ₹5.4 crore for the quarter ended June 2025. For FY25, the company recorded a sharp improvement in performance, with profit rising to ₹9.5 crore from ₹1.7 crore in the previous year, while revenue increased to ₹40 crore from ₹4.8 crore.
