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Nephro Care India IPO Subscribed Nearly 716 Times Amid Strong Institutional Demand

• ByStartupStory     |    July 3, 2024

The initial public offering (IPO) of Nephro Care India has garnered immense attention, with the subscription reaching an astonishing 715.85 times on Tuesday. This overwhelming response was primarily driven by robust participation from institutional investors. The Rs 41.26-crore IPO saw bids for a staggering 2,23,00,38,400 shares against the 31,15,200 shares on offer, as per data from the National Stock Exchange (NSE).

The non-institutional investors’ portion was subscribed a remarkable 1,787.56 times, while the retail individual investors’ quota saw a subscription of 634.12 times. Additionally, the quota for qualified institutional buyers received 245.14 times subscription, and the employee portion was subscribed 20.44 times. Overall, the IPO achieved a subscription rate of 715.85 times.

The Kolkata-headquartered healthcare provider announced last Friday that it raised Rs 11.14 crore from anchor investors. The IPO includes a fresh issuance of 45.84 lakh equity shares, priced in the range of Rs 85-90 per share.

Nephro Care India plans to allocate Rs 26.17 crore from the IPO proceeds to establish a multi-speciality healthcare facility, Vivacity Multi Speciality Hospital, in Madhyamgram near Kolkata. The remaining funds will be used for general corporate purposes. The proposed hospital will feature 100 in-patient beds, including a 30-bed critical care unit. It will offer a variety of treatment services across disciplines such as cardiology, medical oncology, gastroenterology, gynaecology, and an advanced renal transplant unit in East India.

In December 2023, Nephro Care India concluded its pre-IPO funding round, attracting investments from notable figures like banking veteran and former HDFC Ltd chairman Deepak Parekh, HDFC Securities chairman Bharat Shah, and Macleods Pharmaceuticals Founder and MD Rajendra Agarwal, among others.

For the first nine months of FY24, Nephro Care India reported a revenue of Rs 19.75 crore and a profit (PAT) of Rs 3.4 crore. The shares of the company will be listed on the NSE Emerge platform, with Corporate Capital Ventures serving as the book running lead manager and Bigshare Services as the registrar for the issue.

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