Nephrocare Health Services IPO opens today: Should you subscribe to it?

The initial public offering (IPO) on Nephrocare Health Services shall open for bidding at Dalal Street on Wednesday, December 10. The dialysis solutions player shall be offering its shares in the range of Rs 438-460 apeice, which can be applied for a minimum of 32 equity shares and its multiples thereafter. The issue shall conclude for subscription on Friday, December 12.

The Rs 871.05 crore IPO of Nephrocare Health Services includes a fresh share sale of Rs 353.40 crore and an offer-for-sale (OFS) of up 1,12,53,102 shares worth Rs 517.64 crore. The net proceeds from the issue shall be utilized towards capital expenditure for opening new dialysis clinics in India, debt repayment and general corporate purposes.

Incorporated in 2010, Hyderabad-based Nephrocare Health Services provides end-to-end dialysis care through a wide network of clinics across India and select international markets. The company offers services including diagnosis, haemodialysis, home and mobile dialysis, and wellness programs, supported by an in-house pharmacy.

Nephrocare Health Services raised Rs 260 crore from 14 anchor investors as it allocated 1.7 crore equity shares at Rs 162 apiece. Its anchor book include names like Fidelity Funds, Prudential Assurance, Eastspring Investments, Polar Capital Funds, Manulife Global Fund, SBI Mutual Fund, ICICI Prudential AMC, DSP MF, Baroda BNP Paribas MF, and Bandhan MF, SBI Life Insurance, HDFC Life Insurance.

Nephrocare Health Services reported a net profit of Rs 14.24 crore with a revenue of Rs 483.97 crore for the period ended September 30, 2025. It clocked a net profit of Rs 67.10 crore with a revenue of Rs 769.92 crore for the financial year 2024-25. The company commands a total market capitalization close more than Rs 4,615 crore.

Nephrocare Health Services has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of reservation. Retail investors will have 35 per cent of the allocation in the IPO. Last heard, Nephrocare Health Services was not commanding any grey market premium (GMP) in the unofficial market.

ICICI Securities, IIFL Capital Services, Ambit and Nomura Financial Advisory and Securities (India) are the book running lead managers and Kfin Technologies is the registrar of the issue. Its shares shall be listed on both BSE and NSE with December 17 as the date of listing. Here's what a host of brokerage firms have to say about the IPO of Nephrocare Health Services:
 

Swastika Investmart

Rating: Subscribe with caution

Nephrocare provides end-to-end dialysis care services across the globe. It stands as Asia’s largest and the world’s fifth-largest dialysis service provider. The company has delivered steady growth in both revenue and profits over the reported periods, said Swastika Investmart.

"However, increased finance costs have weighed down its bottom line in H1 FY26. Based on the latest financials, the issue seems aggressively valued. Only aggressive long-term investors should apply in this IPO," it added.
 

SBI Securities

Rating: Subscribe

Nephrocare is India’s largest dialysis service provider with over 50 per cent market share in the Indian organized market. It has a capital efficient, asset-light business model with 52.4 per cent of its total clinics as of September 2025 being on a revenue-sharing model, thus requiring limited investment in space. It is one of the fastest growing dialysis service providers globally, said SBI Securities.

Its Ebitda margin has improved 1,090 bps between FY23-25 driven by the increasing contribution from international markets. The issue is valued at FY25 EV/Ebitda of 26.1 times, in-line with its peers. The long-term growth potential for it looks attractive given its market leading position, growing international presence and increasing penetration in India," it added with a 'subscribe' rating.
 

Anand Rathi Share & Stock Brokers

Rating: Subscribe for long-term

Nephrocare Health is the largest dialysis network in India and Asia. Its scale, paired with a capital-efficient, asset-light model, drives cost efficiency, optimal resource utilization, and strong operational performance. It continues to grow through disciplined organic expansion, supported by a strong history of strategic acquisitions and seamless integrations in India and overseas, said Anand Rathi.

"Nephrocare's clinical leadership is powered by standardized treatment protocols and advanced technology that ensure safe, high-quality patient outcomes. Its patient-first philosophy is reinforced by an experienced leadership team and the backing of marquee global and domestic investors. We believe that the IPO is fully priced and recommend a subscribe for long term' rating," it adds.
 

SMIFS

Rating: Subscribe

"We recommend subscribing to the issue as a long-term investment, supported by strong growth triggers including international expansion, PPP-driven scale-up, rising utilisation, contract manufacturing benefits, technology-enabled efficiencies, margin accretion from high-ASP markets and a robust inorganic pipeline," said SMIFS.
 

BP Equities

Rating: Subscribe

Nephrocare is well-positioned to sustain its growth trajectory, driven by continued clinic additions, further penetration into underserved regions, and scaling of international operations, said BP Equities. "It is valued at a P/E multiple of 57.4 times FY25 earnings. We, thus, recommend a 'subscribe' rating for this issue," it said.
 

Ventura Securities

Rating: Subscribe

Nephrocare has formed strategic partnerships with established hospital chains such as Max Super Specialty Hospital, Fortis Escorts Hospitals, Care Hospitals, Wockhardt Hospitals, Paras Healthcare, The Calcutta Medical Research Institute, Jehangir Hospital, and Ruby Hall Clinic to operate in-house dialysis centers, said Ventura Securities with a 'subscribe' rating.
 

Lakshmishree Investments & Securities

Rating: Subscribe

Nephrocare Health Services has an unique and asset-light model that leverages partnerships and an extensive network, with a strategic focus on expanding accessibility in Tier II and Tier III regions, said Lakshmishree. "Given its market leadership, scalable and asset-light model, strong financial turnaround, and the massive, non-discretionary nature of dialysis demand," it said with a 'subscribe' rating.
 

Kunvarji Wealth Solutions

Rating: Subscribe

"We recommend subscribing to this IPO with a medium to long term view. It provides comprehensive dialysis care both locally and globally. It reported healthy growth across its headline numbers and its operating metrics. NHSL is well-positioned for sustained expansion, backed by its strong regional and overseas market dominance and stable recurring revenue streams," said Kunvarji Wealth.