Investing in Nephrocare Health IPO? Check 5 key risks before you decide

Nephrocare Health IPO will be offered at a price band of ₹438 to ₹460 per share and a lot size of 32 shares

Nephrocare Health IPO: Nephrocare Health, an end-to-end dialysis care provider, is set to launch its maiden public issue on Wednesday, December 10, 2025. The ₹871 crore public issue comprises a fresh issue of 7.7 million shares aggregating to ₹353.4 crore, and an offer for sale (OFS) with investors divesting up to 11.3 million shares worth ₹517.64 crore.

 

Nephrocare Health IPO will be offered at a price band of ₹438 to ₹460 per share. The minimum application size has been set at 32 shares per lot. The issue will remain open for subscription till Friday, December 12, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Wednesday, December 17, 2025.

 

According to the red herring prospectus (RHP), the company proposes to utilise ₹129.11 crore from the net issue proceeds for opening new dialysis clinics in India, and ₹136 crore for prepayment or repayment of certain borrowing availed by the company. The remaining funds will be used for general corporate purposes. 

Nephrocare Health IPO GMP

On Monday, December 8, the unlisted shares of Nephrocare Health were trading flat at ₹460, the upper end price, in the grey market, according to sources tracking unofficial markets.

Here are the key risks associated with Nephrocare Health:

Dependence on captive clinics: According to the company’s RHP, a significant share of its revenue comes from captive clinics - dialysis centres operated within private hospitals under contractual arrangements. These clinics contributed 36.51 per cent, 43.30 per cent, 51.96 per cent and 62.23 per cent of revenue from operations in the six months ended September 30, 2025 and FY25, FY24 and FY23, respectively. Any non-renewal, cancellation or inability to retain such arrangements could materially impact the company’s business.

 

PPP contracts: Several of Nephrocare's dialysis clinics operate under public–private partnership (PPP) contracts awarded through competitive bidding. These contracts contributed 30.96 per cent, 32.62 per cent, 29.24 per cent and 22.39 per cent of revenue from operations in the H1FY26 and FY25, FY24 and FY23, respectively. The company’s ability to qualify for and win future tenders is uncertain, and any inability to secure such contracts may adversely affect its business prospects.

 

Dialysis service risks: The company’s dialysis operations expose it to various operational, medical, legal and reputational risks. Any failure to maintain or comply with required quality standards could lead to litigation and potential liabilities, adversely affecting its reputation and results of operations. The quality of dialysis services also depends on several factors beyond the company’s control, including patient co-morbidities, nephrologist expertise, staff interaction, and overall patient experience.

 

Dependence on healthcare talent: The company’s performance and growth strategy rely heavily on the ability to attract and retain qualified healthcare professionals. Given the long training periods and limited availability of such talent, competition from public and private hospitals, as well as home-care providers, remains high. Any inability to hire or retain experienced personnel could significantly affect the company’s operations.

 

Regulatory compliance: Nephrocare stated that compliance with various safety, health and environmental regulations can be costly and may affect its competitive position and operating results. The healthcare sector, including the dialysis segment, is regulated by multiple central and state laws, and any regulatory changes or reforms could directly impact the company’s operations. Although nephrology-specific regulations are not yet in place, the company must adhere to numerous statutory requirements, and any non-compliance could jeopardise its ability to operate.