Nephrocare Health Services Ltd. (NHSL) initial public offering (IPO) is set to open for subscription on Wednesday, December 10, and will remain open until Friday, December 12.
The company is looking to raise ₹871.05 crore from the issue, comprising a fresh issue of 0.77 crore shares aggregating to ₹353.40 crore and an offer for sale of 1.13 crore shares aggregating to ₹517.64 crore.
Of the total issue size, 75% has been reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors.
The price band has been fixed at ₹438– ₹460 per share, with a lot size of 32 shares, requiring a minimum investment of ₹14,720 for retail investors. The mainboard IPO is proposed to list on both the NSE and BSE, tentatively on Wednesday, December 17.
Nephrocare Health Services IPO: Key points you should know
About the Company: Nephrocare Health Services is a dialysis services provider offering comprehensive care through its network of clinics, from diagnosis to treatment and wellness programs, including haemodialysis, home and mobile dialysis, and pharmacy services.
In FY25, the company served 29,281 patients and completed 28,85,450 treatments in India, which represented 10% of the total dialysis patients in India.
Clinic Network and Geographic Presence: The company operates 519 clinics, forming India’s most extensive dialysis network, with a presence across 288 cities in 21 states and 4 union territories as of September 30, 2025. About 77.35% of its clinics are located in tier II and tier III cities and towns.
Of these, 80 clinics operate through greenfield projects, 259 through brownfield expansion, and 180 via PPP collaborations. NHSL is India’s only dialysis services provider with an international presence, having a network of 51 clinics across the Philippines, Uzbekistan, and Nepal as of September 2025.
Partnerships with Leading Hospitals: The company has partnered with prominent hospital chains in India, including Max Super Speciality Hospital, Fortis Escorts Hospitals, Care Hospitals, Wockhardt Hospitals, Paras Healthcare, The Calcutta Medical Research Institute, Jehangir Hospital, and Grand Medical Foundation (Ruby Hall), to operate select dialysis clinics.
Market Overview: The global dialysis services market was valued at USD 75.2 billion in 2024 and is projected to reach USD 106.2 billion by 2029, growing at a CAGR of 7.1%. NHSL’s focus markets—India, the Philippines, and Uzbekistan—represent a combined market size of USD 1.9 billion, with over 49 million annual treatments expected in 2025.
Asset-Light Model Boosts Efficiency: NHSL’s asset-light business model lowers clinic establishment and operating costs through standardized formats, an in-house projects team, and an efficient supply chain. Direct procurement of medical equipment, vertical integration of key consumables, and contract manufacturing agreements help control quality and costs, driving improved overall margins.
Low-Capital Clinics Enable Scalable Growth: The company’s asset-light strategy in India allows us to scale efficiently while keeping capital intensity low. As of September 30, 2025, 52.41% of its clinics operate under a revenue-sharing model, requiring minimal upfront investment in real estate. This approach reduces fixed costs and enhances operational flexibility.
Financial Performance: The company’s revenue from operations increased from ₹437.30 crore in FY2023 to ₹755.81 crore in FY2025. EBITDA grew from ₹48.60 crore to ₹166.64 crore, and PAT rose from a loss of ₹11.79 crore to a profit of ₹67.10 crore over the same period.
For the six months ended September 30, 2025, it reported revenue from operations of ₹473.50 crore, EBITDA of ₹110.31 crore, and PAT of ₹14.23 crore.
Key Risks: A large portion of NHSL’s revenue (37–62% FY23–1HFY26) comes from captive clinics within private hospitals on a revenue-sharing model. Loss or non-renewal of these contracts could hurt operations.
Additionally, 22–31% of revenue is from government PPP contracts, with delays or failure to secure future contracts posing risks. Operational, reputational, medical, and legal risks exist if quality standards are not met.
Allotment and Listing Details: The Nephrocare Health Services IPO allotment is expected to be finalized on Monday, December 15, with refunds initiated on Tuesday, December 16. Shares will be credited to allottees’ demat accounts on the same day following refunds.
Objectives of the Issue: Proceeds from the IPO will be used to set up new dialysis clinics in India, repay the debt, and for general corporate purposes.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
