The Rs 871.39 crore IPO saw robust demand, with the issue subscribed 14.08 times overall. Qualified institutional buyers led the bidding, subscribing their portion nearly 27 times, while non-institutional investors bid close to 25 times. Retail participation was more measured at 2.36 times, in line with broader trends where individual investors have turned selective amid a crowded primary market calendar.
Nephrocare raised Rs 260.26 crore from anchor investors ahead of the issue, providing early stability to the book. The IPO comprised a fresh issue of Rs 353.75 crore and an offer for sale of Rs 517.64 crore. Proceeds from the fresh issue will be used primarily to reduce debt and support expansion of dialysis centres, while the OFS allows existing investors to partially monetise their holdings.
Founded in 2010, Nephrocare is India’s largest dialysis services provider and among the largest in Asia. As of September 2025, the company operated 519 clinics across India and select overseas markets, including the Philippines, Uzbekistan and Nepal. Nearly 78% of its centres are located in tier II and tier III cities, positioning the company to benefit from rising demand for affordable chronic care in underserved regions.
In FY25, Nephrocare served over 29,000 patients and completed nearly 2.9 million dialysis treatments, accounting for roughly 10% of India’s total dialysis patient base. The company follows an asset-light model, operating dialysis units through partnerships with leading hospital chains such as Max, Fortis, CARE, Wockhardt and Paras Healthcare.
Financially, Nephrocare has delivered strong growth, with revenue rising 34% and profit after tax jumping 91% in FY25. EBITDA margins stood at 22%, reflecting operating leverage from scale. However, analysts have flagged valuation concerns. At the issue price, the stock is valued at over 160 times post-issue earnings, significantly higher than most listed healthcare peers.
With a 7% grey market premium, Nephrocare’s listing is expected to be steady. Much will depend on broader market sentiment and institutional holding behaviour once anchor lock-ins begin to expire in January and March.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)