Deepak Parekh-backed Nephro Care India’s IPO opens on June 28; price band fixed at Rs. 85-90

Nephro Care India (“NCIL” or “The Company”), announced that its initial public offering (IPO) will open for subscription on Friday, June 28, 2024. The anchor portion will be opened on Thursday, June 27, 2024, and the issue will conclude on Tuesday, July 02, 2024. The company intends to raise approximately Rs. 41.26 crore from the offering and aims to be listed on the NSE Emerge platform. The price band for the issue has been fixed at Rs. 85-90 per share, and the lot size will be 1,600 equity shares.

Corporate Capital Ventures is the sole Book Running Lead Manager to the Issue, and Bigshare Services is the Registrar. Corporate Capital Ventures has completed a string of successful SME IPOs in recent months, including GP Eco Solutions India, Trust Fintech, Creative Graphics, Alpex Solar, Rockingdeals, Accent Microcell, Oriana Power, Droneacharya, Annapurna Swadisht, Phantom Digital FX, Oriana Power, and Crayons Advertising, among others.

According to the statement published, the IPO will comprise a fresh issue of 45.84 lakh Equity Shares with a face value of Rs. 10/- through the book-building route. As many as 12.38 Lakh equity shares have been reserved for the Anchor investors, 2.3 Lakh equity shares for the market maker, 2.25 Lakh equity shares reserved for the employees, 6.19 Lakh equity shares allocated for the HNI portion, 8.25 Lakh equity shares for net QIBs, and the Retail (RII) portion accounts for 14.44 Lakh equity shares.

According to the RHP document, NCIL intends to utilise Rs. 26.17 crore of net proceeds from the IPO to set up a multi-speciality healthcare facility, ‘Vivacity Multi Speciality Hospital’, at Madhyamgaram in Kolkata, West Bengal, and the company plans to use the remaining capital for general corporate purposes.

The new hospital will be a unit of Nephro Care India and is proposed to include 100 inpatient beds, including a 30-bed Critical Care unit having ICU, HDU, RTU and NICU facilities. Vivacity will offer treatment services in various disciplines such as cardiology, medical oncology, gastroenterology, gynaecology and many others, including an advanced renal transplant unit in East India.  

Previously, in December 2023, Nephro Care India successfully closed the pre-IPO funding round, which saw the participation of banking veteran and former chairman of HDFC, Deepak Parekh, chairman of HDFC Securities Bharat Shah, and Rajendra Agarwal, Founder and MD of Macleods Pharmaceuticals, among others.

The Kolkata-headquartered healthcare provider offers a wide range of clinical and lifestyle solutions and renal insufficiency treatment to patients. The treatment framework at NCIL covers the entire range of lifestyle, physiological and spiritual aspects of wellness. Nephro Care operates on a multidimensional patient engagement framework comprising programs and facilities such as Mukti, Home Dialysis, Home Care and Diagnostics. NCIL’s clinics are operated on a ‘hub-and-spoke’ model, where each clinic is independent and individually well-equipped with skilled healthcare professionals and advanced infrastructure to serve the healthcare needs of the patients and ensure their rehabilitation.

NCIL posted a revenue of Rs. 19.75 crore and earned a profit (PAT) of Rs. 3.4 crore during the first nine months of FY 2023-24, compared to a revenue of Rs. 17.09 crore, with a profit (PAT) of Rs. 1.94 crore in FY 2022-23.