The ₹251-crore of opens today at a price band of ₹108-114 per share. Investors can bid for the Gujarat Kidney IPO with a minimum lot size of 128 shares.
The IPO is entirely a fresh issue of up to 2.2 crore equity shares worth ₹250.8 crore at the upper end of the price band. The IPO will close on Wednesday.
The company has allotted up to 7 per cent of the public issue to Qualified Institutional Buyers (QIBs), 15 per cent to Non-Institutional Investors (NIIs) and no more than 10 per cent to retail investors.
Anchor investors
Gujarat Kidney and Super Speciality on Friday raised ₹100 crore from anchor investors ahead of its IPO from 10 entities, including Venus Investments, Khandelwal Finance Pvt Ltd, Nexus Global Opportunities Fund, and Sunrise Investment Opportunities Fund. The company has allocated a little over 87.73 lakh equity shares at an anchor price of ₹114 per share.
Objective of the issue
Proceeds from the fresh issue will be used for the proposed acquisition of Parekhs Hospital at Ahmedabad and part-payment of purchase consideration for the already acquired “Ashwini Medical Centre”. Also, funds will be used for setting up a new hospital in Vadodara; buying robotics equipment for the hospital at Vadodara; debt repayment; funding inorganic growth through unidentified acquisitions; and general corporate purposes.
About the company
Gujarat Kidney & Super Speciality Ltd. (GKASSL) is a mid-sized multispeciality hospital chain operating across the central region of Gujarat. It has a portfolio of 7 multispeciality hospitals and 4 pharmacies within the hospital premises. The company is mainly located in four cities of central Gujarat and has a total capacity of 490 beds with 340 operational beds. It offers both surgical services (secondary care) and super-speciality surgical services (tertiary care). Additionally, it is planning to acquire “Parekhs Hospitals”, based in Ahmedabad, which has a capacity of 49 beds, from the IPO proceeds. With a team of 670 employees, 89 full-time consultants and 238 visiting consultants, the company is well placed to cater to the under-penetrated regional demand.
SBI Securities views:
During FY25, the company delivered revenue/EBITDA/PAT of ₹40.2 crore/₹16.5 crore/₹9.4 crore, up 742.9%/748.2%/449.2% YoY respectively. We believe the company is fairly valued and hence assign a Neutral rating to the issue.