Nephro Care India IPO 2025!
Nephrocare Health Services Ltd operating under the brand NephroPlus, filed a Draft Red Herring Prospectus (DRHP) with SEBI on July 26, 2025, for an Initial Public Offering (IPO). NephroPlus, based in Hyderabad.
Asia’s largest dialysis service provider operating 447 clinics across 269 cities in 21 states and 4 Union Territories and over 490 clinics globally, including in the Philippines, Uzbekistan, Nepal, and Saudi Arabia.
Founded in 2009 by Vikram Vuppala, Sandeep Gudibanda, Kamal D Shah, and Pullaiah Vuppala, NephroPlus focuses on quality dialysis services, patient-centric care, and affordability with services 30-50% cheaper than hospital-based dialysis.
Nephro Care India IPO 2025:
IPO Structure:
- Fresh Issue: ₹353.4 crore through the issuance of new equity shares.
- Total Issue Size: Market sources estimate the total issue size could reach ₹2,000 crore.
- Pre-IPO Placement: The company may consider a pre-IPO placement of up to ₹70.6 crore, which would reduce the fresh issue size accordingly.
- Offer for Sale (OFS): Up to 12,792,056 equity shares (approximately 1.28 crore shares) by promoters and existing shareholders, including Investcorp Private Equity Fund II, Healthcare Parent Ltd, Investcorp Growth Opportunity Fund, and Edoras Investment Holdings Pte Ltd.
IPO Details:
- Share Allocation: The IPO includes a reservation for eligible employees and a discount may be offered to them. The exact allocation for qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail investors will be detailed in the Red Herring Prospectus (RHP).
- Price Band and Lot Size: These details are not yet disclosed in the DRHP and will be announced closer to the IPO opening date.
- Listing: The equity shares are proposed to be listed on the BSE and NSE.
- Lock-in Period: Shares under the OFS and certain promoter shares may be subject to a lock-in period as per SEBI regulations, typically one year for promoters post-IPO.
Financial Performance:
- Profit After Tax: ₹50.1 crore (up from ₹36.7 crore in the same period of FY24)
- In FY25, the company reported revenue of ₹755.8 crore and a profit after tax of ₹67 crore.Below are the key details of the public issue.
- ₹.570.2 crore (up from ₹463.5 crore in the same period of FY24).
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Business Model and Operations:
- NephroPlus operates a hub-and-spoke model, with dialysis clinics (spokes) supported by regional hubs for operational efficiency.
- The company provides dialysis services under public-private partnership (PPP) models with state governments, such as in Andhra Pradesh, Telangana, and Uttar Pradesh, which enhances affordability for patients.
- NephroPlus also offers ancillary services like diagnostics, pharmacy, and home dialysis, contributing to its revenue stream.
- Its proprietary technology platform, Dialysis Information System (DIS), optimizes clinic operations, patient scheduling, and data management.
Market Position and Growth Strategy:
- NephroPlus holds a significant share of the dialysis market in India, where the dialysis market is expected to grow due to rising chronic kidney disease (CKD) prevalence and increasing healthcare awareness.
- The company plans to use IPO proceeds to open 150 new dialysis clinics by FY28, focusing on underserved regions in India.
- International expansion remains a key focus, with plans to strengthen its presence in the Middle East and Southeast Asia.
Risk Factors (as per DRHP):
- Dependence on government contracts and PPP models, which may face policy changes or delays in payments.
- High competition from hospital-based dialysis units and other standalone providers.
- Regulatory risks related to healthcare compliance and pricing controls in India.
- Currency and operational risks in international markets.
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