Nephrocare Health Services IPO Opens — 10 Key Things To Know Before You Subscribe: Anand Rathi Report

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Anand Rathi Report

Here are the 10 things to know before investing

1. Nephrocare Health Services Ltd.'s initial public offering launched today, December 10, 2025, and will close on December 12. A comprehensive dialysis care provider has fixed the price band in the range of Rs 438 to Rs 460 Apiece with a face value of Rs 2.

2. Nephrocare Health IPO is a book-building issue worth Rs 871.05 crore. The IPO is a combination of fresh issue of 77 lakh shares, worth Rs 353.4 crore and an offer-for-sale (OFS) of 1.13 crore shares, aggregating to Rs 517.64 crore. 

3. Investors can place bids starting from a minimum of 32 shares and in multiples thereafter, meaning the retail investors need to apply for at least a single lot size, amounting to a minimum investment of Rs 14,720 based on the upper price band per application. Post-issue, the company’s market capitalization is expected to be around Rs 4,615 crore at the upper price band, valuing it at a P/E of 60.2x and EV/Ebitda of 26 times based on FY25 earnings.

4. ICICI Securities, Ambit, IIFL Capital Services and Nomura are the book-running lead managers for the public issue, while KFin Technologies is the registrar to the offer.

5. Shares of Nephrocare Health Services Ltd. are tentatively scheduled to be listed on the BSE and NSE on December 17.

6. Narayana Health, Jupiter Life Line Hospitals, Rainbow Children Hospital, Dr. Agarwal’s Healthcare, Dr. Lal Path Labs, Metropolis Healthcare, Vijaya Diagnostics are the other listed peers in the space.

7. Objects of the Issue

• Capital expenditure by the Company for opening new dialysis clinics in India.

• Pre-payment, or scheduled repayment, in full or part, of certain borrowings availed by the Company.

• General Corporate Purpose.

8. Strengths:

• India’s and Asia’s largest dialysis chain with leadership across their markets.

• Scale coupled with asset-light model driving cost efficiencies and operational excellence.

• Driving clinical excellence and quality through protocols and advanced technology.

• Organic growth augmented by proven track record of acquisitions and integration in India and internationally.

9. Key Strategies:

• Continue to consolidate their leadership position in India.

• Scale operations in existing international markets including through inorganic growth opportunities.

• Expand further in South East Asia, Commonwealth of Independent States and Middle East markets.

• Continue to focus on operating efficiency and leveraging their network scale to drive supply chain benefits and profitability.

• Continue to focus on innovation-led digital healthcare to enhance convenience, efficiency and reach.

10. Key Risk:

• Company derive a portion of their revenue from operations from their captive clinics, which are defined as dialysis clinics operated within private hospital premises under contractual arrangement, and such captive clinics accounted for 36.51%, 43.30%, 51.96% and 62.23% of their revenue from operations in the six months period ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. If their contracts for operating captive clinics are cancelled or if they are unable to renew or retain similar revenue and operational arrangements, their business may be materially and adversely affected.

• Company operate a number of their dialysis clinics under public private partnership contracts awarded by government agencies through a competitive bidding process. Such contracts accounted for 30.96%, 32.62%, 29.24% and 22.39% of their revenue from operations in the six months period ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. There can be no assurance that company will qualify for, or that they will successfully compete and win such tenders, which could have an adverse impact on their business prospects, results of operations, financial condition and cash flows.

• Company is subject to various operational, reputational, medical and legal risks associated with the operations of their dialysis services. Failure to establish and comply with appropriate quality standards when performing dialysis services could result in litigation and liability for them and could materially and adversely affect their reputation and results of operations.

• Company is dependent on healthcare professionals and their business will be impacted significantly if they are unable to attract or retain such professionals.

• Company may face continuing challenges in further expanding their operations in cities they currently operate in or in other cities internationally that they strategically intend to commence operations, which could have an adverse effect on their business prospects and future financial performance.

• Business interruption at their dialysis clinics, either standalone, captive or PPP clinics, could result in significant losses and reputational damage to business.

Valuation

Nephrocare Health Services is the largest dialysis network in India and Asia, with a dominant position across all its key markets. Its scale, paired with a capital-efficient, asset-light model, drives cost efficiency, optimal resource utilization, and strong operational performance.

The company’s clinical leadership is powered by standardized treatment protocols and advanced technology that ensure safe, high-quality patient outcomes.

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.

We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO.

Click on the attachment to read the full IPO report:

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