Gujarat Kidney And Super Speciality files DRHP for IPO

Gujarat Kidney and Super Speciality, a chain of mid-sized multispeciality hospitals located in Central Gujarat, has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through Initial Public Offering (IPO).

The IPO, with a face value of rupees two, is a fresh issue of shares up to 2.2 crore Equity Shares.

The proceeds from the fresh issue to the extent of Rs 77 crore for proposed acquisition of Parekhs Hospital, Ahmedabad, Rs 12.4 crore for part-payment of purchase consideration for the already acquired “Ashwini Medical Centre”, Rs 30.2 crore for funding of capital expenditure requirements of the company towards setting up of a new hospital in Vadodara, Rs 7.3 crore for buying robotics equipment for the hospital Gujarat Kidney and Super Speciality hospital at Vadodara location, Rs 1.5 crore for full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company and funding inorganic growth through unidentified acquisitions and general corporate purposes.

The Issue is being made through the book-building process, wherein not less than 75 per cent of the Issue is allocated to qualified institutional buyers, and not more than 15 per cent and 10 per cent of the net offer is assigned to non-institutional Investors and retail individual bidders, respectively.

Gujarat Kidney and Super Speciality is led by Dr Pragnesh Yashwantsingh Bharpoda, Promoter and Managing Director. The hospital categorises its healthcare services as secondary services (surgical services) and tertiary services (super speciality surgical services).

As of March 20, 2025, on a consolidated basis, it operates six multispeciality hospitals and three pharmacies operating within its Hospitals, Gujarat Kidney and Superspeciality Hospital (Vadodara), Gujarat Multispeciality Hospital (Godhra), Raj Palmland Hospital (Bharuch), Surya Hospital and ICU (Borsad), Gujarat Surgical Hospital (Vadodara), Ashwini Medical Centre (Anand) and Ashwini Medical Store (Anand) with a total bed capacity of 400 beds, approved bed capacity of 355 beds and operational bed capacity of 250 beds.

On a consolidated basis, it has 322 employees, 21 full-time consultants, and 32 visiting consultants as of March 20, 2025. It also caters to patients under Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana and public sector undertakings and private companies.

Gujarat Kidney and Super Speciality’s Revenue from operations on a Proforma Consolidated basis grew from Rs 34.01 crore in Fiscal 2023 to Rs 41.04 crore in Fiscal 2024. Profit after tax grew from Rs 2.80 crore in the fiscal year 2023 to Rs 4.34 crore in the fiscal year 2024.

For the six months ended September 30, 2024, revenue from operations on a Proforma Consolidated basis stood at ₹ 27.67 crore and Profit after tax stood at ₹ 6.87 crore. 

As per the D&B Report, the Indian hospital industry has experienced significant growth, increasing from Rs. 2.4 lakh crore in FY 2016 to Rs. 5.8 lakh crore in FY 2023. It is further estimated to have risen by 12 per cent in FY 2024, reaching approximately Rs 6.5 lakh crore.

Nirbhay Capital Services is the sole book-running lead manager and MUFG Intime India is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange.