NephroPlus files DRHP, aims to raise ₹353.4 crore via fresh equity issue

Nephrocare Health Services, which runs Asia’s largest dialysis chain under the brand NephroPlus, on Saturday announced the filing of a draft red herring prospectus (DRHP) to mobilise funds through an initial public offer (IPO). 

 

The Hyderabad based firm aims to raise ₹353.4 crore through a fresh issue of equity shares. Market sources claim the total issue size could touch ₹2000 crore. 

 

According to the DRHP, the proposed IPO involves a combination of the fresh issue and an offer for sale (OFS) of 12.7 million equity shares by promoters and existing shareholders.

 

Commenting on the offer, Nephrocare Health Services said that the company proposes to utilise the net proceeds of the fresh issue towards capital expenditure to the tune of ₹129.1 crore for opening new dialysis clinics in India. 

 

“₹136 crores is for pre-payment or scheduled repayment of certain borrowings availed by the company and rest on general corporate purposes,” it added. 

 

The company added that it is in consultation with Book Running Lead Managers (BRLMs) and may consider a pre-IPO placement of up to ₹70.6 crore prior to the filing of the Red Herring Prospectus (RHP).

 

“If such placement is carried out, then the fresh issue will be reduced to the extent of such pre-IPO placement,” it said. 

 

The IPO will be managed by ICICI Securities, IIFL Capital Services, Nomura, and Ambit Capital.

 

As part of the OFS, the promoter selling shareholde₹include Investcorp Private Equity Fund II, Healthcare Parent Limited, Investcorp Growth Opportunity Fund and Edoras Investment Holdings Private Limited. 

 

Other selling shareholde₹include Investcorp India Private Equity Opportunity Limited, International Finance Corporation, 360 One Special Opportunities Fund - Series 9 and Series 10. 

 

Founded in 2010, NephroPlus runs 447 clinics across 269 cities in 21 states and 4 union territories, serving more than 33,000 patients globally on an annual basis. 

 

It is backed by private equity (PE) firms such as Quadria Capital, which had invested ₹850 crore in NephroPlus last year. 

 

In the full financial year 2024-25 (FY25), the company reported a revenue from operations of ₹755.8 crore and profit after tax (PAT) of ₹67 crore.