Investing in Gujarat Kidney IPO? Check 5 key risks before you decide

Gujarat Kidney IPO will be offered at a price band of ₹108 to ₹114 per share, with a lot size of 128 shares

Gujarat Kidney IPO: The initial public offering (IPO) of Gujarat Kidney and Super Speciality, a multispeciality healthcare services provider, is set to open for public subscription on Monday, December 22, 2025. The ₹250.8-crore public issue comprises a fresh issue of 22 million shares. There is no offer for sale (OFS) component.  Gujarat Kidney IPO will be offered at a price band of ₹108 to ₹114 per share. The minimum application size has been set at 128 shares per lot. The issue will remain open for subscription till Wednesday, December 24, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Tuesday, December 30, 2025.

 

MUFG Intime is the registrar of the issue. Nirbhay Capital Services is the sole book-running lead manager. 

 

According to the red herring prospectus (RHP), the company proposes to use ₹77 crore from the net fresh issue proceeds for acquiring Parekhs Hospital in Ahmedabad, ₹12.4 crore for part-payment of Ashwini Medical Centre, ₹10.78 crore for additional shares in subsidiary Harmony Medicare, ₹30.09 crore for a new hospital in Vadodara, ₹6.82 crore for robotics equipment at Gujarat Kidney & Super Speciality Hospital, and ₹1.2 crore for repayment of borrowings. The balance will be used for general corporate purposes and unidentified acquisitions.

Key risks associated with investing in the Gujarat Kidney IPO:

Proposed acquisitions: According to the RHP, the company plans to deploy a part of the net proceeds from the issue towards the acquisition of Parekhs Hospital, after which it will oversee and manage the hospital. It cautioned that any delay or inability to complete the acquisition on the agreed terms could impact its future plans and business prospects. The company has entered into a term sheet to acquire 100 per cent equity in Parekhs Hospital for a total consideration of ₹79 crore. The company proposes to utilise ₹77 crore from the issue proceeds to fund the acquisition.  It also plans to use part of the issue proceeds to make a part-payment towards the purchase consideration for the acquisition of Ashwini Medical Centre. Gujarat Kidney has acquired the entire business of Ashwini Medical Centre and Ashwini Medical Store for a combined consideration of ₹15 crore. The company cautioned that delays in raising funds from the issue could affect its ability to meet payment obligations to the sellers.

 

Hospital expansion risks: Gujarat Kidney's plans to fund capital expenditure for constructing a new hospital are subject to potential risks. These include unanticipated delays in obtaining necessary approvals and implementing the project, which could adversely affect its business and financial performance. The company has not yet placed orders for the required capital expenditure and cannot guarantee that it will be able to source materials or services in a timely manner or at commercially acceptable prices, potentially impacting its expansion plans in Gujarat, India. Additionally, the proposed hospital is planned on leased land, which may involve risks related to lease terms and arrangements, further potentially affecting the company’s business.

 

Recent acquisition impact: As per the RHP, the company acquired Harmony Medicare after the three-month period ended June 30, 2025. Since the two entities operated independently prior to this date, the restated financial statements do not reflect the financials of Harmony Medicare. Consequently, the restated financial statements for Q1FY26, and for the FY25, FY24, and FY23 are not directly comparable to any future financial results that may include the operations of Harmony Medicare.

 

Limited experience of Greenfield projects: Gujarat Kidney is relatively new to Greenfield projects, which involve planning, developing, and executing new facilities such as hospitals and other infrastructure. The company said greenfield projects carry inherent risks, including construction delays, cost overruns, and challenges in meeting regulatory and operational requirements. Due to its limited experience, the company may face difficulties in completing these projects on schedule and within budget, which could adversely affect its financial performance.

 

Leasehold property risks: The company’s registered office at Gujarat Kidney Hospital in Vadodara and Godhra Hospital, as well as the land and buildings of Gujarat Surgical Hospital in Borsad and Bharuch, are situated on leased or consented premises. Any adverse impact on the ownership rights of the lessor, a breach of lease terms, or failure to renew leases on commercially favourable terms—or at all—could disrupt operations and materially affect the company’s business.