NephroCare Health IPO: Strong Institutional Demand, Modest Listing Expectations

Subscription & Grey Market Snapshot

The IPO received bids for nearly 18.69 crore shares, against an offer of about 1.33 crore shares, indicating strong demand across investor segments. Institutional interest (QIB + NII) dominated the book, reflecting confidence in the company’s growth prospects.

About the Company

With its focus on creating and expanding the NephroPlus brand, NephroCare Health Services Limited (NephroPlus) has established itself as the largest organised provider of dialysis services in the country and one of the largest providers of dialysis services in Asia. The NephroPlus brand was launched in 2001 and, as of September 30, 2025, the Company had created a presence in 288 cities in India through a total of 519 clinics. Approximately 77% of the clinics operated by NephroCare Health Services Ltd are located in tier II III cities. NephroCare uses a capital-light, scalable model with an emphasis on partnerships with hospitals as well as efficient clinical operations, which supports the development of NephroPlus clinics throughout India. The business model's focus on providing renal care services (dialysis is not elective, it is required) results in predictable revenue, which supports the Company's long-term growth prospects.

Financial Snapshot (₹ crore)

Competitor Analysis

NephroCare is focused on providing people with chronic renal care (dialysis) services and operates within this specialised healthcare services segment. In contrast to its competitors, there are relatively few nephrocare providers (listed), but there are other nephro-care companies that operate in related industries such as multi-speciality hospitals (i.e. Narayana Hrudayalaya Ltd) or diagnostic laboratories (i.e. Dr Lal PathLabs Ltd, Metropolis Healthcare Ltd, etc.). This allows NephroCare to compare its own valuation to those of companies operating in these other specialised health service sectors.

NephroCare Health IPO Review

Analysts view NephroCare Health's IPO as a long-term strategy to take advantage of the growth in chronic disease around the world along with an ageing demographic and the expanding trend of organized care in previously untouched markets. The company's turnaround in profitability and overall improvement in operating margins, combined with a highly scalable "asset-lite" model, support the long-term investment thesis.

While the company's GMP (Gross Misallocation Price) is low relative to other healthcare companies, the current cautious environment for new offerings indicates that the current pricing of the company represents the cautiousness of investors concerning valuations, particularly against competitors in the diagnostic and hospital space. When the IPO is priced, the market will be expecting a modest premium compared to current prices. The future success of NephroCare Health as a public entity will ultimately depend on their ability to execute on expansion plans, create cost efficiencies, and provide high-quality services.