Nephro Health IPO Day 2: Issue subscribed 32% so far. Here's GMP, subscription status, other details - apply or not?

Nephro Health initial public offering (IPO), which opened for subscription on Wednesday, December 11, received a muted response from investors across all three categories. The mainboard IPO was subscribed only 13% on the first day of bidding on Wednesday.

The mainboard IPO will close for bidding on Friday, December 12.

Nephrocare Health Services provides end-to-end dialysis care through its network of clinics, covering everything from diagnosis to treatment and wellness programs. Its offerings include hemodialysis, home and mobile dialysis, as well as pharmacy services.

In FY25, the company treated 29,281 patients and delivered 2,885,450 dialysis sessions across India, accounting for 10% of the country’s total dialysis patient population.

Nephro Health IPO subscription status

On the second day of bidding, the Nephro Health IPO was subscribed only 0.32 times.

On Thursday, December 11, the employee quota saw a subscription of 0.98 times, retail investors subscribed 0.39 times, non-institutional investors booked just 0.17 times, and the qualified institutional investor (QIB) segment was subscribed 0.30 times.

Nephro Health IPO GMP today

The shares of Nephro Health IPO is trading at a premium of ₹20 in the grey market, as per investorgain. This means that the GMP of Nephro Health IPO is +20.

The estimated listing price of Nephro Health IPO is likely to be ₹480, which is 4.35% higher than the IPO price of ₹460. The lowest GMP is ₹0, while the highest GMP is ₹20.

Nephro Health IPO Review

Brokerage firm Anand Rathi has given ‘subscribe - long term’ rating to Nephro Health IPO, saying that the Nephrocare continues to grow through disciplined organic expansion, supported by a strong history of strategic acquisitions and seamless integrations in India and overseas. Its patient-first philosophy is reinforced by an experienced leadership team and the backing of marquee global and domestic investors.

“At the upper price band company is valuing at P/E of 60.2x with EV/EBITDA of 26x to its FY25 earnings and market cap of ₹ 46,153 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe Long Term” rating to the IPO,” the firm said.

Meanwhile, brokerage firm SBI Securities has recommended ‘subscribe’ to the Nephro Health IPO. The firm said that 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. We recommend investors to SUBSCRIBE to the issue at cut-off price,” the firm said.

Nephro Health IPO details

The company aims to raise ₹871.05 crore through its IPO, which includes a fresh issue of 0.77 crore shares worth ₹353.40 crore and an offer for sale of 1.13 crore shares worth ₹517.64 crore.

Of the total issue, 75% is allocated for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors.

The price band is set between ₹438 and ₹460 per share, with a lot size of 32 shares, requiring retail investors to invest a minimum of ₹14,720. The mainboard IPO is expected to be listed on both NSE and BSE, tentatively on Wednesday, December 17.

IPO allotments for Nephrocare Health Services are anticipated to be finalized on Monday, December 15, with refunds processed on Tuesday, December 16. Shares will be credited to investors’ demat accounts on the same day as refunds.

The funds raised through the IPO will be utilized to establish new dialysis clinics in India, repay existing debt, and support general corporate purposes.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.