Gujarat Kidney IPO likely to see flat listing as GMP stays muted

Shares of Gujarat Kidney and Super Speciality are expected to make a soft debut on Dalal Street on Tuesday, December 30. The mid sized multi speciality hospital chain was commanding a modest grey market premium of about 1.32% over its issue price of ₹114, indicating a largely flat listing.

Ahead of listing, the stock was trading at a grey market premium of around ₹1.5 per share. However, grey market activity remained muted for most of the IPO period, limiting strong cues on listing gains.

The ₹251 crore public issue, which was open for subscription from December 22 to December 24, saw reasonable overall demand, driven primarily by strong retail participation, while institutional interest remained measured.

The Gujarat Kidney IPO was subscribed 5.21 times overall. Retail investors led the demand, subscribing their portion 19.04 times. The non institutional investor category was subscribed 5.73 times, while the qualified institutional buyer portion, excluding anchor investors, was subscribed 1.06 times.

Ahead of the issue opening, the company raised ₹100 crore from anchor investors, accounting for nearly 40% of the total issue size.

The IPO was priced in a band of ₹108 to ₹114 per share, with a face value of ₹2 each. At the upper end of the price band, Gujarat Kidney and Super Speciality is expected to list with a market capitalisation of around ₹899 crore.

The issue comprised entirely a fresh issue of 2.2 crore equity shares, with no offer for sale component.

Of the IPO proceeds, ₹77 crore will be used for the acquisition of Parekhs Hospital in Ahmedabad, while ₹10.78 crore will be deployed to acquire an additional stake in subsidiary Harmony Medicare at Bharuch.

A further ₹12.4 crore will go towards part payment for the already acquired Ashwini Medical Centre, ₹30 crore will be invested in setting up a new hospital in Vadodara, ₹6.8 crore will be used to procure robotic equipment, and ₹1.2 crore will be allocated towards repayment of certain borrowings.

The remaining funds will be used for inorganic growth opportunities and general corporate purposes.

On the financial front, the company reported a profit of ₹5.4 crore and revenue of ₹15 crore for the June 2025 quarter. For FY25, profit surged to ₹9.5 crore from ₹1.7 crore a year earlier, while revenue jumped sharply to ₹40 crore from ₹4.8 crore.