Nephro Health IPO: Subscription Status & Investment Insights
The Nephro Health IPO, which launched on December 10, has attracted minimal interest from investors, showing only 13% subscription by the end of its first day on December 11. With the bidding set to close on December 12, the lackluster response raises questions about the company’s appeal to potential investors. Nephrocare Health Services specializes in dialysis care, providing services that span from diagnosis to treatment and wellness programs.
The company aims to raise ₹871.05 crore through this IPO, which includes a fresh issue of shares worth ₹353.40 crore and an offer for sale worth ₹517.64 crore. The price band for the shares is set between ₹438 and ₹460, requiring a minimum investment of ₹14,720 for retail investors, making it critical for them to weigh their options carefully.
In FY25, Nephrocare treated over 29,000 patients and conducted nearly 2.9 million dialysis sessions across India, accounting for about 10% of the country’s total dialysis patient population. While the subscription rates have been low, with retail investors subscribing only 0.21 times, analysts from firms like Anand Rathi and SBI Securities have given positive reviews, suggesting a long-term investment strategy due to the company’s strong market position and growth potential.
According to Anand Rathi, Nephrocare's disciplined organic expansion and strategic acquisitions have bolstered its growth, making it a compelling choice for long-term investors. The estimated listing price of Nephro Health IPO is projected at ₹480, indicating a potential rise from the IPO price. With a Grey Market Premium (GMP) of ₹20, there’s a possibility of a favorable listing for early investors.
As the IPO approaches its closing date, it’s important for potential investors to stay informed about the allotment processes and timelines. IPO allotments are expected to be finalized on December 15, with shares credited to demat accounts shortly after. The funds raised are planned to be utilized for establishing new dialysis clinics, repaying debts, and other corporate purposes, highlighting the company’s commitment to expanding its services in India.
For investors considering participation in the Nephro Health IPO, careful consideration of the current market dynamics and expert recommendations will be crucial in making an informed decision.
