Gujarat Kidney & Super Speciality IPO opens today: Should you subscribe to it

The initial public offering (IPO) of Gujarat Kidney & Super Speciality kicks-off for bidding on Monday, December 22. The healthcare solutions player is offering its shares in the range of Rs 108-114 apeice. Investors can apply for a minimum of 128 equity shares and its multiples thereafter. The issue will close for bidding on Wednesday, December 24.

Gujarat Kidney and Super Speciality is entirely a fresh share of 2.20 crore equity shares worth Rs 250.80 crore. The net proceeds shall be utilized towards acquisition of Parekh's Hospital at Ahmedabad; part-payment for the acquired Ashwini Medical Centre; funding capex for new hospital in Vadodara; buying robotics equipment; repayment of debt; and general corporate purposes.

Incorporated in 2019, Gujarat Kidney and Super Speciality (GKASSL) specializes in providing healthcare services, including secondary and tertiary care, across multiple locations in Gujarat, India. It operates seven multispeciality hospitals and four pharmacies with a total bed capacity of 490 beds, an approved capacity of 455 beds, and an operational capacity of 340 beds.

Ahead of its IPO, Gujarat Kidney and Super Speciality raised Rs 100 crore from 10 anchor investors as it allocated 87,73,120 equity shares at Rs 114 per share. Its anchor book included names like Venus Investments VCC, Khandelwal Finance, Craft Emerging Market Fund, Nexus Global Opportunities Fund, Zeta Global Funds, Religo Commodities, Innovative Vision Fund and others.

For the three months ended on June 30, Gujarat Kidney & Super Speciality reported a net profit of Rs 5.40 crore with a revenue of Rs 15.27 crore. The company clocked a net profit of Rs 9.50 crore with a revenue of Rs 40.40 crore for the year 2024-25. At the current valuations, the company shall command a market capitalization close to Rs 900 crore.

The company has reserved 75 per cent of the net issue for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) have 15 per for the allocation in the issue. Retail investors have only 10 per cent of reservation in the IPO. Last heard, the company was commanding a grey market premium (GMP) of Rs 7 per share, suggesting a 6 per cent upside.

Nirbhay Capital Services is the sole book running lead manager of Gujarat Kidney & Super Speciality IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Tuesday, December 30. Here's what a host of brokerage firms say about the IPO of Gujarat Kidney & Super Speciality:  

Arihant Capital Markets

Rating: Neutral

Gujarat Kidney is positioned for steady medium-term growth, supported by rising demand for tertiary healthcare services in Gujarat, a strong renal focused clinical franchise and a scalable asset-light expansion model. With a clear focus on affordability, quality care and disciplined capital deployment, it will sustain stable patient volumes and gradually improve profitability over time, said Arihant Capital.

"Ongoing acquisitions, operational integration and investments in high-value specialties and medical technology are expected to improve capacity utilization and operating efficiencies. The issue is valued at a P/E ratio of 94.61 times, based on annualized PAT of FY25 EPS of Rs 1.2. We are recommending a 'neutral' rating for this issue," it said.  

SBI Securities

Rating: Neutral

Gujarat Kidney & Super Speciality is a mid-sized multispeciality hospital chain operating across the central region of Gujarat. It has a portfolio of 7 multispeciality hospitals and 4 pharmacies within the hospital premises. It offers both surgical services (secondary care) and super-speciality surgical services (tertiary care), said SBI Securities.

"It is planning to acquire 'Parekh's Hospital', based in Ahmedabad, which has a capacity of 49 beds. During FY25, it delivered revenue/ebitda/PAT of Rs 40.2 crore/Rs 16.5 crore/Rs 9.4 crore, up 742.9 per cent/748.2 per cent/449.2 per cent YoY respectively. We believe the company is fairly valued and hence assign a 'neutral' rating to the issue," it adds.  

Swastika Investmart

Rating: Avoid

Gujarat Kidney & Super Speciality operates a multispecialty hospital and related services chain in central Gujarat. Valuation appears stretched at 61 times P/E, significantly higher than most listed hospital peers. Smaller scale increases risk, as execution delays or integration issues can materially impact earnings, said Swastika Investmart.

"This IPO may not be suitable for most investors at the current stage. At the current price band, the IPO appears aggressively valued, leaving limited room for upside in the near to medium term. Investors with a conservative or medium-term investment approach are advised to wait for clearer post-listing price discovery," it adds.  

BP Equities

Rating: Subscribe

Gujarat Kidney's outlook remains positive, braced by strong demand for chronic and specialty healthcare, expansion of bed capacity and specialties, increasing insurance coverage and government healthcare support in Gujarat, said BP Equities. "The issue is valued at a P/E multiple of 61.6 times FY25 earnings. We, thus, recommend a 'subscribe' rating for this issue," it added.  

Kantilal Chhaganlal Securities

Rating: Neutral

Gujarat Kidney aims to improve bed occupancy and case mix through deeper doctor engagement, specialty-led growth, and increased penetration of insured and government-backed patients. The management’s long-standing presence in the healthcare sector supports disciplined execution, with an emphasis on scaling existing assets before undertaking large new investments, said Kantilal Chhaganlal Securities.

"The hospital business is capital-intensive, and any delays or cost overruns in expansion projects or acquisitions could impact returns and cash flows. It operates in a highly regulated environment, and changes in healthcare regulations, clinical standards, or compliance requirements could increase operating costs or restrict certain procedures," it added with a 'neutral' rating.  

Adroit Financial Services

Rating: Subscribe for long-term

Gujarat Kidney & Super Speciality is using its funds for the acquisition of Parekh Hospital and the development of a new women’s hospital in Vadodara. It is expanding its presence in tier-2 cities while also exploring opportunities in tier-1 cities, along with scaling up existing hospitals by adding new super-specialty departments, said Adroit Financial Services.

"It aims to reach a total capacity of 2,500 beds cover the next three years from 490 beds currently. In evaluating hospital acquisitions, it focuses on four key aspects: infrastructure, the doctors’ team, the management team, and the hospital’s track record. It is recommended to 'subscribe' to the IPO for long-term investment, considering its growth potential," it said.  

Lakshmishree Investments & Securities

Rating: Subscribe for long-term

Gujarat Kidney has grown its scale and profitability on the back of an asset-heavy but efficient hospital model, with improving margins driven by better case mix, higher occupancy, and operating leverage from its existing infrastructure. Funds are allocated for robotic surgical equipment and increasing stakes in high performing subsidiaries, said Lakshmishree Investments.

"Despite the competitive nature of the healthcare sector, Gujarat Kidney’s asset light integration model and its dominance in the renal care niche allow it to capitalize on the rising demand for quality healthcare in semi-urban India. We recommend a ‘subscribe’ rating for long term investors," it adds.