Nephrocare Health IPO opens Dec 10: Should you bid? Here's what experts say

Nephrocare Health IPO comprises a fresh issue of 7.7 million, amounting to ₹353.4 crore and an offer for sale (OFS) of 11.3 million equity shares amounting to ₹517.64 crore

Nephrocare Health IPO: Nephrocare Health, a dialysis services provider, is set to launch its initial public offering (IPO) on Wednesday, December 10, 2025. The upper end of the price band of ₹438 to ₹460, the company aims to raise ₹871.05 crore. The mainline offering comprises a fresh issue of 7.7 million, amounting to ₹353.4 crore and an offer for sale (OFS) of 11.3 million equity shares amounting to ₹517.64 crore. 

 

The mainline offering will close for bidding on Friday, December 12. Investors can bid for a minimum of one lot comprising 32 shares. At the upper end price, a retail investor would require a minimum investment amount of ₹14,720.  

 

 

Under the OFS, the promoter selling shareholders include Investcorp Private Equity Fund II, Healthcare Parent, Investcorp Growth Opportunity Fund and Edoras Investment Holdings. Other selling shareholders include Investcorp India Private Equity Opportunity, International Finance Corporation, 360 One Special Opportunities Fund - Series 9 and Series 10.  

 

Kfin Technologies is the registrar of the issue. ICICI Securities, Ambit, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) are the book-running lead managers.

 

According to the red herring prospectus (RHP),  the company proposes to utilise ₹129.1 crore from the net issue proceeds for opening new dialysis clinics in India, and ₹135.99 crore for prepayment or repayment of debt availed by the company. The remaining funds will be used for general corporate purposes.

Nephrocare Health IPO: Here's what the experts say

Analysts at Arihant Capital expect Nephrocare to witness gradual, multi-year growth driven by organic clinic additions, rising awareness of organised dialysis services, and a measured increase in contributions from international operations. 

 

While the company's asset-light model and centralised cost structure provide operational efficiency, its future margin progression may moderate as it scales into newer markets. "Its experience in acquisitions and PPP engagements contributes to execution visibility, but sustained performance will depend on consistent integration outcomes and stable patient volumes. Overall, Nephro Care remains positioned to participate in industry growth while navigating the operational and competitive factors inherent to the sector," the brokerage said.

 

At the upper band of ₹460, the issue is valued at a P/E ratio of 69x, based on annualised PAT of FY25 EPS of ₹6.7. The brokerage has assigned a “Neutral” rating for this issue.

 

According to SBI Securities, Nephrocare is one of the fastest-growing dialysis service providers globally with FY23-25 Revenue/Ebitda CAGR of 31.5 per cent/85.2 per cent, respectively.

 

The company has reported PAT of ₹67 crore in FY25 from a net loss of ₹12 crore in FY23. Its Ebitda margin has improved 1,090 bps between FY23-25, driven by the increasing contribution from international markets (12 per cent to 32 per cent between FY23-25), which have relatively higher profitability and constant innovation on reducing India's COGS. 

 

"At the upper price band of ₹460, the company is valued at FY25 EV/Ebitda of 26.1x on post-issue capital, which is in line with its peers. The long-term growth potential for the company looks attractive given its market-leading position, growing international presence, and increasing penetration in India," the brokerage said. 

 

SBI Securities recommended investors to 'Subscribe' to the issue at the cut-off price. 

Nephrocare Health IPO GMP

On Tuesday, December 9, 2025, the unlisted shares of Nephrocare were trading flat at ₹460, the upper end of the price band, according to sources tracking unofficial markets.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.