The Nephro Health IPO experienced a slow response, achieving only 13% subscription by its second day. Despite the company being a leading dialysis care provider in India, investor interest has been low across all segments.
The Nephro Health IPO entered its second day on Thursday with a quieter-than-expected response from investors. The issue, which opened on December 11, has been subscribed only 13% so far. The bidding window will close on Friday (December 12), giving investors one more day to make their decision.
A Healthcare Leader, But a Muted Market Response
Nephrocare Health Services is one of India’s leading providers of end-to-end dialysis care. The company offers hemodialysis, home and mobile dialysis, and pharmacy services through its network of clinics.
In FY25, Nephrocare treated 29,281 patients and conducted 2.88 million dialysis sessions, representing nearly 10% of all dialysis patients in India.
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Despite this strong presence, the IPO has seen a slow start across categories.
Subscription Status: Slow Pickup Across Segments
On Day 1, the IPO recorded an overall subscription of 0.13 times. Here’s where each segment stands:
- Employees: 0.59 times
- Retail Investors: 0.21 times
- Non-Institutional Investors (NIIs): 0.10 times
- QIBs: No bids yet
Institutional investors typically come in on the last day, so analysts expect QIB interest to improve closer to closing.
Grey Market Premium: What GMP Signals Today
In the grey market, Nephro Health shares are trading at a premium of Rs 20, putting today’s GMP at +20.
This indicates a possible listing price of Rs 480, around 4.35% above the issue price of Rs 460.
So far, the GMP has ranged between Rs 0 and Rs 20, showing mild but positive sentiment.
Apply or Not? Here’s What Brokerages Say
Market experts have shared mixed-but-mostly-positive views, particularly for long-term investors.
Anand Rathi: Subscribe for Long-Term Gains
The brokerage says Nephrocare has been growing steadily through organic expansion and acquisitions. Backed by a strong leadership team and global investors, it is well-positioned for future growth.
At the upper band, the valuation stands at a P/E of 60.2x and EV/EBITDA of 26x, which the firm calls “fully priced”, but still recommends a Long-Term Subscribe.
SBI Securities: Subscribe
SBI Securities notes that Nephrocare’s valuation is in line with peers. With its market-leading position, growing presence overseas, and rising demand for dialysis services, the brokerage believes the company has solid long-term potential.
It recommends investors Subscribe at the cut-off price.
IPO Size, Structure and Price Band
Nephro Health aims to raise Rs 871.05 crore through a mix of fresh issue and OFS:
- Fresh Issue: Rs 353.40 crore
- Offer for Sale (OFS): Rs 517.64 crore
Allocation split:
- QIBs: 75%
- NIIs: 15%
- Retail: 10%
The price band is Rs 438–Rs 460. With a lot size of 32 shares, retail investors need a minimum investment of Rs 14,720.
The stock is expected to list on NSE and BSE on December 17.
Allotment, Refunds and Listing Timeline
- Allotment Finalisation: December 15
- Refunds Begin: December 16
- Shares Credited to Demat: December 16
- Tentative Listing: December 17
How the Company Plans to Use the Funds
The IPO proceeds will go towards:
- Expanding its dialysis clinic network across India
- Repaying debt
- Funding general corporate needs
