Healthcare Boom! Gujarat Kidney & Super Speciality Files DRHP For IPO; What Investors Should Take Note?

Gujarat Kidney and Super Speciality Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in order to raise funds through an initial public offering (IPO). With a fresh issue of shares up to 2.2 crore equity shares, the IPO has a face value of Rs 2.

As per the DRHP, the proceeds of the fresh offering will be used to pay for the following: Rs 77 crore for the proposed acquisition of Parekhs Hospital in Ahmedabad; Rs 12.4 crore for the partial payment of the price paid for the acquisition for the already-purchased "Ashwini Medical Centre"; Rs 30.2 crore for the company's capital expenditure requirements in order to establish a new hospital in Vadodara; Rs 7.3 crore for the purchase of robotics equipment for the Gujarat Kidney & Super Speciality hospital in Vadodara; Rs 1.5 crore for the full or partial repayment and/or prepayment of some outstanding secured borrowings taken out by the company; and funding inorganic growth through unnamed acquisitions and general corporate purposes.

Through the book-building process, the public offering is being made, with qualified institutional buyers receiving at least 75% of the issue and non-institutional and retail investors receiving no more than 15% and 10% of the net offer, respectively. The annual consolidated revenue of Gujarat Kidney and Super Speciality Limited jumped from Rs 34.01 crore in Fiscal 2023 to Rs 41.04 crore in Fiscal 2024. In Fiscal 2024, profit after tax climbed from Rs 2.80 crore in Fiscal 2023 to Rs 4.34 crore. Operational revenue on an annualized consolidated basis was Rs 27.67 crore for the six months ending September 30, 2024, while profit after tax was Rs 6.87 crore.

The issue's registrar is MUFG Intime India Private Limited, while the only book-running lead manager is Nirbhay Capital Services Private Limited. It has been proposed that the equity shares of the company will be listed on both the BSE Limited and the National Stock Exchange of India Limited.

Prominent urologist Dr. Pragnesh Yashwantsingh Bharpoda is the Promoter and Managing Director of Gujarat Kidney and Super Speciality. The hospital divides its medical services into two categories: tertiary, or super specialty surgical services, and secondary, or surgical, services. With a total bed capacity of 400, authorized bed capacity of 355, and operational bed capacity of 250, as of March 20, 2025, it operates six multispecialty hospitals and three pharmacies within its hospitals: Gujarat Kidney and Super Speciality Hospital (Vadodara), Gujarat Multispecialty Hospital (Godhra), Raj Palmland Hospital Private Limited (Bharuch), Surya Hospital and ICU (Borsad), Gujarat Surgical Hospital (Vadodara), Ashwini Medical Center (Anand), and Ashwini Medical Store (Anand).

As of March 20, 2025, it employs 322 individuals total, including 21 full-time consultants and 32 visiting consultants.