Gujarat Kidney and Super Specialty IPO subscribed 5.2 times at close. Check GMP and key details
Gujarat Kidney and Super Specialty’s Rs 251-crore IPO drew strong interest, with overall subscription crossing 5 times on the final day, led by robust retail demand. The grey market premium hovered around 2.2%, signalling a modest listing gain as ...
By Ritesh Presswala, ETMarkets.com | Updated:
ANI
The Rs 251-crore Gujarat Kidney and Super Specialty issue saw strong investor interest on its final day, with subscriptions crossing five times. So far, bids have been received for 6.89 crore shares against the 1.32 crore shares on offer, reflecting robust demand across all investor segments.
In the grey market, the premium has eased slightly to around 2.2%, compared with the earlier 3.5% over the upper price band of Rs 114. Based on current GMP trends, the IPO is expected to list at approximately Rs 116–117 per share.
This is a pure fresh issue, with shares offered in a price band of Rs 108–114. At the upper end of the band, the company’s implied pre-IPO market capitalisation is approximately Rs 898.8 crore.
As of December 24, the latest grey market premium (GMP) for the Gujarat Kidney IPO stands at around Rs 2.5, which is roughly 2.2% above the upper price band of Rs 114. This GMP indicates that the IPO is expected to list at an estimated price of about Rs 116–117 per share, suggesting a modest listing gain for investors.
Retail Individual Investors (RIIs) led the demand, with bids clocking an impressive 19.04 times the 22 lakh shares allocated to the segment, indicating strong participation from small investors.
The Non-Institutional Investors (NII) category was subscribed 5.73 times against its 33 lakh shares on offer.
Meanwhile, the Qualified Institutional Buyers (QIB) segment saw a relatively modest response, with subscriptions reaching 1.06 times for the 33 lakh shares reserved for institutional investors.
The IPO is open for subscription for three days and is set to close on December 24, 2025. The allotment of shares is expected to be finalised by December 26, 2025, while the company is likely to make its market debut on the BSE and NSE on December 30, 2025.
The price band for the issue has been fixed at Rs 108 to Rs 114 per equity share.
Gujarat Kidney and Super Specialty runs a network of seven multi-speciality hospitals along with four pharmacies across central Gujarat, with a strong focus on renal sciences and super-speciality medical care. The group has a total capacity of 490 beds, of which 340 are currently in use. Its offerings cover both secondary and tertiary healthcare services, including urology, orthopaedics, cardiology, gynaecology and critical care.
As of June 2025, the company’s workforce comprised 89 doctors, over 330 nursing professionals, and more than 300 support staff deployed across its healthcare facilities.
The company has posted a sharp improvement in its financial performance over the past year. According to its restated consolidated accounts, total income jumped to Rs 40.4 crore in FY25 from Rs 5.48 crore in FY24, while profit after tax increased to Rs 9.5 crore from Rs 1.71 crore during the same period.
Operating efficiency also strengthened, with EBITDA margins rising to about 41% in FY25, reflecting improved operating leverage. The return on capital employed stood at 37.65%, underscoring the company’s relatively asset-light growth strategy.
Despite the strong turnaround in profitability, questions remain around the sustainability of these margins. At the upper end of the price band, the IPO is priced at a pre-issue price-to-earnings multiple of roughly 61.6x, which appears steep compared to industry standards.
In comparison, listed hospital operators such as Yatharth Hospital, GPT Healthcare and KMC Speciality Hospitals trade at much lower valuation multiples, even though they operate on a significantly larger scale.
IPO proceeds will primarily be deployed towards expansion and inorganic growth initiatives. Planned investments include the acquisition of Parekhs Hospital in Ahmedabad, increasing the stake in Harmony Medicare in Bharuch, setting up a new hospital in Vadodara, and purchasing advanced medical and robotic equipment. A portion of the funds will also be used for debt reduction and general corporate purposes.
While the long-term outlook for the healthcare sector remains favourable, analysts have cautioned investors about valuation concerns and execution risks, particularly given the company’s relatively modest scale and ambitious expansion strategy.
In its IPO note, Swastika Investmart has advised investors to stay cautious, citing stretched valuations and limited near-term upside.
"The valuation appears aggressive at around 61x P/E, significantly higher than most listed hospital peers. Smaller scale increases risk, as execution delays or integration issues can materially impact earnings," the brokerage said, adding that conservative and medium-term investors may be better off waiting for clearer post-listing price discovery before taking exposure.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
In the grey market, the premium has eased slightly to around 2.2%, compared with the earlier 3.5% over the upper price band of Rs 114. Based on current GMP trends, the IPO is expected to list at approximately Rs 116–117 per share.
This is a pure fresh issue, with shares offered in a price band of Rs 108–114. At the upper end of the band, the company’s implied pre-IPO market capitalisation is approximately Rs 898.8 crore.
Gujarat Kidney and Super Specialty IPO GMP today
As of December 24, the latest grey market premium (GMP) for the Gujarat Kidney IPO stands at around Rs 2.5, which is roughly 2.2% above the upper price band of Rs 114. This GMP indicates that the IPO is expected to list at an estimated price of about Rs 116–117 per share, suggesting a modest listing gain for investors.
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Gujarat Kidney and Super Specialty IPO subscription status
At close, the Gujarat Kidney and Super Specialty IPO was subscribed 5.21 times overall, underscoring strong investor appetite.Retail Individual Investors (RIIs) led the demand, with bids clocking an impressive 19.04 times the 22 lakh shares allocated to the segment, indicating strong participation from small investors.
The Non-Institutional Investors (NII) category was subscribed 5.73 times against its 33 lakh shares on offer.
Meanwhile, the Qualified Institutional Buyers (QIB) segment saw a relatively modest response, with subscriptions reaching 1.06 times for the 33 lakh shares reserved for institutional investors.
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Gujarat Kidney and Super Specialty IPO details:
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The Rs 251-crore Gujarat Kidney and Super Specialty IPO is a pure fresh issue, with the company not offering any shares for sale by existing shareholders.The IPO is open for subscription for three days and is set to close on December 24, 2025. The allotment of shares is expected to be finalised by December 26, 2025, while the company is likely to make its market debut on the BSE and NSE on December 30, 2025.
The price band for the issue has been fixed at Rs 108 to Rs 114 per equity share.
Business Overview
Gujarat Kidney and Super Specialty runs a network of seven multi-speciality hospitals along with four pharmacies across central Gujarat, with a strong focus on renal sciences and super-speciality medical care. The group has a total capacity of 490 beds, of which 340 are currently in use. Its offerings cover both secondary and tertiary healthcare services, including urology, orthopaedics, cardiology, gynaecology and critical care.
As of June 2025, the company’s workforce comprised 89 doctors, over 330 nursing professionals, and more than 300 support staff deployed across its healthcare facilities.
Financial Performance
The company has posted a sharp improvement in its financial performance over the past year. According to its restated consolidated accounts, total income jumped to Rs 40.4 crore in FY25 from Rs 5.48 crore in FY24, while profit after tax increased to Rs 9.5 crore from Rs 1.71 crore during the same period.
Operating efficiency also strengthened, with EBITDA margins rising to about 41% in FY25, reflecting improved operating leverage. The return on capital employed stood at 37.65%, underscoring the company’s relatively asset-light growth strategy.
Valuation and Peer Comparison
Despite the strong turnaround in profitability, questions remain around the sustainability of these margins. At the upper end of the price band, the IPO is priced at a pre-issue price-to-earnings multiple of roughly 61.6x, which appears steep compared to industry standards.
In comparison, listed hospital operators such as Yatharth Hospital, GPT Healthcare and KMC Speciality Hospitals trade at much lower valuation multiples, even though they operate on a significantly larger scale.
Use of Proceeds and Outlook
IPO proceeds will primarily be deployed towards expansion and inorganic growth initiatives. Planned investments include the acquisition of Parekhs Hospital in Ahmedabad, increasing the stake in Harmony Medicare in Bharuch, setting up a new hospital in Vadodara, and purchasing advanced medical and robotic equipment. A portion of the funds will also be used for debt reduction and general corporate purposes.
While the long-term outlook for the healthcare sector remains favourable, analysts have cautioned investors about valuation concerns and execution risks, particularly given the company’s relatively modest scale and ambitious expansion strategy.
Should you subscribe?
In its IPO note, Swastika Investmart has advised investors to stay cautious, citing stretched valuations and limited near-term upside.
"The valuation appears aggressive at around 61x P/E, significantly higher than most listed hospital peers. Smaller scale increases risk, as execution delays or integration issues can materially impact earnings," the brokerage said, adding that conservative and medium-term investors may be better off waiting for clearer post-listing price discovery before taking exposure.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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