On June 28, 2024, Nephro Care India Limited launched its Initial Public Offering (IPO). It is a healthcare company focusing on kidney patient care. It has witnessed a huge response to its IPO. Within hours, the IPO was subscribed 9.17 times. This shows investor’s interest in the healthcare sector.
Details of the IPO
NCIL’s IPO comprises 4,584,000 equity shares. The price band is set between INR 85 to INR 90 per share. The total issue size amounts to INR 41.26 crore, solely through a fresh issuance of shares. NCIL plans to utilize the net proceeds of INR 26.17 crore to establish a multispecialty hospital named “Vivacity” in Kolkata, West Bengal. It is also planning to use those funds for general corporate purposes.
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Investor Appetite and Subscription Breakdown
On the first day of subscription, the IPO received bids for 2,85,74,400 shares against the total offer size of 31,15,200 shares. The retail investor portion was oversubscribed by 16.89 times. The non-institutional investor was subscribed by 6.73 times. Qualified Institutional Buyers’ participation is not fully booked yet.
Company Background and Financial Performance
NCIL was founded in 2014 by Dr. Pratim Sengupta. After that it has rapidly grown into a prominent player in kidney care services, based out of Kolkata. In the FY 2023–24, NCIL reported total revenue of INR 19.75 crore and profit after tax (PAT) of INR 3.4 crore. This shows the strong financial health and growth prospects of this company.
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Grey Market Premium and Expected Listing
The grey market premium (GMP) for Nephro Care India IPO stood at INR 100. This suggests that the market expectations for this IPO are very strong. This implies a potential listing price of INR 190 per share. This is 111.11% higher than the upper end of the IPO price band of INR 90.
There will be an impressive subscription rate on its debut day. This positive market sentiment is reflected in the grey market. Nephro Care India’s IPO shows investor confidence in the healthcare sector.
Listing Date & Plateform
The allotment for the Nephro Care India Limited shares is expected to be finalized on Wednesday, July 3, 2024. The listing date for this IPO is set on Friday, July 5, 2024. It will be listed on the NSE SME.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
