IPO Review: Gujarat Kidney’s ₹250.8 Cr IPO Explained

Gujarat Kidney & Super Speciality Ltd is a regional hospital group that runs 7 multi-speciality hospitals and 4 in-hospital pharmacies in Gujarat. The IPO is a 100% fresh issue of ₹250.8 crore, with bids open from Dec 22–24, 2025, at ₹108-₹114 per share. The GMP is around ₹7 right now, which is an unofficial signal from the unofficial market, and it can swing daily. This blog breaks down how the hospitals earn, where the IPO funds will be used, and the key strengths, risks, peer numbers, and valuation.

IPO Overview

• IPO Date: December 22 to December 24, 2025
• Total Issue Size: ₹250.8 crore
• Price Band: ₹108 to ₹114
• Minimum Investment: ₹14,592
• Lot Size: 128 Shares
• Tentative Allotment Date: December 26, 2025
• Listing Date: December 30, 2025 (Tentative)
• GMP: The GMP for the Gujarat Kidney IPO is ₹7, reflecting a 6.14% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Gujarat Kidney Makes Money

• Treat patients in one place (multi-speciality): They started strong in kidney and urinary care, but now treat many needs like surgery, orthopaedics, gynaecology, and internal medicine, so a patient can get multiple treatments without hopping hospitals.
• Grow faster by renting and buying (asset-light): “Asset-light” means they often lease (rent) hospital buildings instead of buying land and constructing from scratch, which can reduce upfront cost and speed up expansion. They also take over running hospitals so cash flows can start sooner than a brand-new build.
• ​Earn mainly from admitted patients (inpatient): Hospital income usually comes from room charges, surgery, nursing, and procedures for patients who stay overnight, plus OPD (same-day visits), diagnostics, and pharmacy sales inside hospitals.
• ​Run each location with local leadership (decentralised ops): Each hospital is managed by a professional team led by a COO (a senior manager who runs day-to-day work), which helps control operations across different cities.​

Objectives of the IPO

• Buy Parekhs Hospital in Ahmedabad: The company plans to use ₹77 crore to acquire Parekhs Hospital. This acquisition of a whole running hospital will help to grow faster than building a new one from scratch.
• ​Complete payment for Ashwini Medical Centre: It will use ₹12.4 crore as part-payment for the already acquired Ashwini Medical Centre. This is basically clearing the pending bill from a past acquisition so the deal is fully settled.
• ​Increase stake in Harmony Medicare (Bharuch): The plan includes ₹10.78 crore to buy more shares in Harmony Medicare Private Limited. This is about tighter control - more ownership usually means more control over decisions and profits.
• ​Build a new women-focused hospital in Vadodara: It has earmarked ₹30.1 crore for capital expenditure (long-term spending to set up a new facility) for a new hospital in Vadodara. This is the “new growth project” part of the story - expanding services, not just buying existing hospitals.
• ​Buy robotics equipment for orthopaedics: It plans to spend ₹6.83 crore for robotics equipment for its Vadodara hospital. It is spending on advanced machines that can help surgeons do joint surgeries with higher precision.
• ​Repay some secured loans: It will use ₹1.2 crore to repay certain secured borrowings. Lower debt can reduce interest cost, but in this IPO, the repayment amount is small compared to the total issue size.
• ​General corporate purposes + future acquisitions: A portion is reserved for general corporate purposes and inorganic growth (buying more hospitals).

Strengths:

• High profitability on paper (but needs watching): FY25 EBITDA margin is 41.12% (meaning out of every ₹100 of revenue, about ₹41 is left after day-to-day operating costs), and profit margin is 23.61% (about ₹24 profit on every ₹100 revenue). That is unusually strong versus many hospital peers, which is why it attracts attention.
• ​Strong return on shareholder money, with low leverage: ROE is 36.61%, which means the company made roughly ₹36.6 profit for every ₹100 of shareholders’ money (equity) in that year. Debt-to-equity is 0.15, which signals low borrowing compared to shareholder funds, so the balance sheet looks lighter on debt.
• Clear expansion plan funded by a full fresh issue: The IPO is entirely fresh (no OFS), and the use of funds is clearly mapped to acquisitions, plus a new Vadodara hospital and equipment. This matters because the growth plan is directly linked to where the IPO cash goes, not promoter exit.​

Risks:

• Business is concentrated in one region: The company’s hospitals are largely in central Gujarat, and it is dependent on that geography and key hospitals like Vadodara. If local competition, regulation, or demand weakens in that region, there isn’t another state business to balance it out.
• ​Execution risk in building + buying hospitals: Management has limited greenfield (from-scratch) project experience, which can mean delays or cost overruns in new builds. On top of that, acquisitions must be integrated (systems, people, processes), and poor integration can hurt service quality and profits.
• ​People cost and staffing risk is real in hospitals: The company’s service quality depends heavily on doctors and nurses, and it itself highlights healthcare professional attrition as a risk. If the best doctors leave or the cost per doctor rises, patient volumes and margins can take a hit.​

For detailed information, visit Gujarat Kidney’s official IPO page at INDmoney.

Peer Comparison

The company’s listed peers include Yatharth Hospital & Trauma Care Services Ltd, GPT Healthcare Ltd, and KMC Speciality Hospitals (India) Ltd.

Source: RHP, internal calculation

• Size: The company is much smaller than large peers like Yatharth (₹40.4 crore income in FY25 vs much larger scale for big chains), so it has less diversification. Smaller size can mean faster growth, but it also means one bad year can hurt more.
• ​Profitability: Its EBITDA margin is 41.12% in FY25, which is very high for hospitals (meaning it keeps about ₹41 out of every ₹100 after operating costs). If peers run closer to mid-20% operating margins, this gap is a big “prove it again” number.​
• Returns vs cost: ROE is 36.61% (₹36.6 profit per ₹100 equity), which is strong, but the valuation also prices in growth. So the question is not “Is it good?” but “Can it stay this good while expanding?”

Financial Performance

The reported numbers look like a sudden jump because the operating business was transferred and scaled in recent periods, so early-year comparisons can be misleading. In FY25, total income was ₹40.4 crore, and profit was ₹9.5 crore. In the quarter ended June 30, 2025, income was ₹15.27 crore, and profit was ₹5.4 crore, showing strong recent profitability, though quarterly numbers can be lumpy in hospitals.​

Borrowings were ₹3.88 crore as of March 31, 2025, and ₹4.03 crore as of June 30, 2025, which is not huge, but it still adds interest cost pressure if expansion needs more debt later. The key thing to track post listing is whether margins stay high while occupancy and patient volumes grow, along with acquisitions.​

IPO Valuation

At the upper end, the IPO implies a pre-IPO P/E of about 61.6x, and a post-IPO P/E of about 41.6x. P/E means “price-to-earnings”: a P/E of 41 says investors are paying about ₹41 for every ₹1 of yearly profit the company makes. The IPO price implies a post-IPO market cap of about ₹900 crore, around 22 times FY25 sales.

​This pricing doesn’t seem “cheap,” especially for a company that is region-limited and still scaling through acquisitions and a new build. The valuation can make sense only if the company repeats its high-margin performance while integrating new hospitals and adding capacity, because at a high P/E, even small disappointments can hurt the stock.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Analyst View

This IPO is a growth bet on a regional hospital chain that wants to expand mainly through acquisitions plus one new hospital project, and the entire issue being fresh means the growth plan is the core purpose of the fundraise. The numbers look attractive, especially high margins and ROE, but they also raise a fair question: can these margins hold when new hospitals are integrated, and staffing costs rise?

​Valuation is the key friction point: a post-IPO P/E around 41.6x is asking investors to pay today for execution that must happen smoothly tomorrow. For risk-aware readers, it may suit only those who understand hospital execution risks (people costs, compliance, and acquisition integration) and can tolerate volatility; conservative investors may prefer to wait for post-IPO performance.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Gujarat Kidney's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.