The spotlight is on Nephrocare Health Services Ltd as its initial public offering (IPO) opens for subscription. Investors are closely watching, as the company, Asia’s largest dialysis service provider and the fifth largest globally, makes its debut in the Indian stock market.
The IPO, with a price band of ₹438–460 per share, values the company at over ₹4,600 crore. With strong interest from anchor investors and a structured allocation for retail and institutional participants, the Nephrocare IPO has set the stage for a major listing event.
Market Performance: IPO Launch and Investor Attention
Nephrocare Health’s IPO subscription began on December 10 and will close on December 12. On the first day, early indications show modest activity, with 1% overall subscription by mid-morning. Retail investors have contributed 2%, non-institutional investors 1%, while bids from Qualified Institutional Buyers (QIBs) are yet to be recorded.
The structured allocation for the IPO is as follows:
- 50% for QIBs
- 35% for retail investors
- 15% for non-institutional investors
- ₹35 million shares reserved for employees
Main News: Nephrocare IPO Details
The IPO comprises both a fresh issue and an offer-for-sale (OFS) component:
- Fresh Issue: ₹353.4 crore
- Offer for Sale (OFS): 1.12 crore shares worth ₹517.6 crore
- Total Issue Size: ₹871 crore
Promoters and key shareholders participating in the OFS include Investcorp Private Equity Fund II, Healthcare Parent, Investcorp Growth Opportunity Fund, Edoras Investment Holdings, International Finance Corporation, and 360 One Special Opportunities Funds.
Use of IPO Proceeds:
- ₹129.1 crore for setting up new dialysis clinics across India
- ₹136 crore for debt repayment
- Remaining funds for general corporate purposes
The IPO has seen notable support from anchor investors, with ₹260 crore raised ahead of subscription. Key participants include SBI Mutual Fund, ICICI Prudential MF, Fidelity Funds, DSP MF, Bandhan MF, Prudential Assurance, Eastspring Investments, Polar Capital Funds, Baroda BNP Paribas MF, SBI Life Insurance, and HDFC Life Insurance.
Company Details: Nephrocare Health Services
Nephrocare Health Services Ltd is recognised for its comprehensive dialysis care network and expansive presence both in India and internationally. It has demonstrated consistent growth in revenue and profits over the reported periods, establishing itself as a dominant player in the healthcare sector.
The IPO has been designed to appeal to both retail and institutional investors, highlighting confidence in the company’s long-term growth potential.
Management and IPO Support:
- Book-Running Lead Managers: ICICI Securities, Ambit, IIFL Capital Services, Nomura Financial Advisory & Securities (India) Pvt. Ltd.
- Registrar: Kfin Technologies Ltd.
Summary: A Milestone for Dialysis Care in India
The Nephrocare IPO marks a significant step in the company’s expansion journey. With fresh capital aimed at new clinics and debt reduction, alongside an established investor base, the IPO is poised to strengthen Nephrocare’s position in India and across Asia.
Investors are observing subscription trends and allocation closely, with the listing date scheduled for December 17 on BSE and NSE. This IPO provides a window into the growing healthcare services sector in India, especially in specialised dialysis care.
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