Gujarat Kidney & Super Speciality Eyes Growth with IPO; Targets Acquisitions, Robotics, & Expansion

The proposed issue aims to raise funds for an ambitious multi-pronged expansion strategy, including acquisitions, capital investments, and enhancing its medical infrastructure.

Gujarat Kidney & Super Speciality Hospital has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) comprising a fresh issue of up to 2.2 crore equity shares with a face value of INR 2 each.

The proposed issue aims to raise funds for an ambitious multi-pronged expansion strategy, including acquisitions, capital investments, and enhancing its medical infrastructure.

According to the DRHP, the company plans to utilize INR 77 Cr from the IPO proceeds for the proposed acquisition of Parekhs Hospital in Ahmedabad and INR 12.4 Cr for part-payment towards the already acquired Ashwini Medical Centre.

Additionally, INR 30.2 Cr is earmarked for capital expenditure related to the establishment of a new hospital in Vadodara, and INR 7.3 Cr will go toward the purchase of robotics equipment for the same. A further INR 1.5 Cr will be used for partial repayment of secured borrowings, with the remainder allocated to inorganic growth initiatives and general corporate purposes.

In terms of issue allocation, 75% is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Individual Investors (RIIs).

Nirbhay Capital Services is acting as the sole book-running lead manager, while MUFG Intime India will serve as the registrar to the issue. The company plans to list its shares on both the National Stock Exchange (NSE) and BSE.

About Gujarat Kidney & Super Speciality

Founded and led by Dr Pragnesh Yashwantsingh Bharpoda, a seasoned urologist and the company’s Promoter and Managing Director, Gujarat Kidney & Super Speciality is a regional healthcare player headquartered in Gujarat. The company operates a network of six multispeciality hospitals, with a total bed capacity of 400, an approved capacity of 355, and an operational capacity of 250 beds as of March 20, 2025. It also manages three in-house pharmacies.

The group specializes in secondary and tertiary care, offering integrated multispeciality healthcare services. The company recorded robust financial growth, with revenue from operations rising from INR 34.01 Cr in FY23 to INR 41.04 Cr in FY24 and profit after tax increasing from INR 2.80 Cr to INR4.34 Cr during the same period.