Nephrocare Health Services, a major Asian dialysis provider, has launched its IPO with a price band of Rs 438–Rs 460 per share. The company secured strong anchor investment, but its grey market premium is currently zero.
The much-talked-about IPO of Nephrocare Health Services Ltd opened for subscription today (December 10), giving investors three days to decide whether they want to place a bet on one of Asia's biggest dialysis service providers. The company has set its price band at Rs 438–460 per share, valuing it at over Rs 4,600 crore. Before the issue opened, Nephrocare raised a strong Rs 260 crore from anchor investors.
Strong Start With Big Anchor Investors
The company's anchor list reads like a who's who of the investment world. SBI Mutual Fund, ICICI Prudential MF, Fidelity Funds, DSP MF, Bandhan MF, Eastspring Investments, Polar Capital Funds, along with insurers like SBI Life and HDFC Life, have all backed the IPO.
A disclosure on the BSE website shows that the anchor round attracted a healthy mix of domestic and global institutions, a positive signal for retail bidders.
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Allotment & Listing Timeline
Nephrocare has reserved 50% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors. Shares worth Rs 35 million are earmarked for employees.
The allotment is expected on December 15, refunds will begin on December 16, and shares should be credited to demat accounts the same day. The stock is expected to debut on both the BSE and NSE on December 17.
GMP Flat on Day 1
Despite a high-profile opening, the IPO is seeing a quiet response in the grey market. The GMP for Nephrocare stood at Rs 0 on Monday, meaning the stock is neither trading at a premium nor a discount.
In simple terms, grey market traders are valuing the stock exactly at its upper band of Rs 460.
What Brokerages Are Saying
Brokerage opinions, while largely positive, come with important caveats.
SBICAP Securities: "Subscribe"
SBICAP says the IPO’s valuation, 26.1x FY25 EV/EBITDA at the upper price band, is in line with other players in the sector. The firm points to Nephrocare's strong market leadership, its growing international footprint, and rising penetration in India.
SBICAP's call for investors: Subscribe at the cut-off price.
Swastika Investmart: "Valuation Is Expensive"
Swastika highlights that Nephrocare is Asia's largest and the world's fifth-largest dialysis service provider, a scale that gives the company a strong foundation.
It notes consistent revenue and profit growth over the years but warns that higher finance costs have dented profitability in the first half of FY26.
The brokerage believes the valuation feels steep and says only long-term, high-risk investors should consider applying.
IPO Structure & Use of Funds
Nephrocare's Rs 871 crore issue includes a fresh issue of Rs 353.4 crore and an Offer For Sale (OFS) of 1.12 crore shares worth Rs 517.6 crore.
Promoters and early investors, including Investcorp funds, Edoras Investment Holdings, IFC, and 360 One Special Opportunities Funds, will be offloading shares in the OFS.
From the fresh capital, Nephrocare plans to spend Rs 129.1 crore on setting up new dialysis centres across India, Rs 136 crore on debt repayment, and the rest on general corporate expenses.
