Nephrocare Health Services Files DRHP for ₹353.4 Cr Fresh Issue, 1.28 Cr OFS Shares
By HDFC SKY | Published at: Jul 26, 2025 06:59 PM IST
Hyderabad, July 26, 2025 – Nephrocare Health Services Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI, proposing a 100% book-built IPO comprising a fresh issue of equity shares worth ₹353.4 crore and an offer for sale (OFS) of up to 1,27,92,056 equity shares by existing shareholders.
IPO Structure
The issue includes:
| Component | Details |
|---|---|
| Fresh Issue | Equity shares aggregating up to ₹353.4 crore |
| Offer for Sale | Up to 1,27,92,056 equity shares |
| Face Value | ₹2 per share |
| Listing Venue | NSE and BSE |
Nephrocare may also consider a Pre-IPO placement of up to ₹70.68 crore. If executed, the size of the fresh issue will be reduced accordingly.
OFS Participants and Their Share Offload
| Selling Shareholder | Shares Offered | Acquisition Cost (₹ per share) |
|---|---|---|
| Edoras Investment Holdings Pte. Ltd. (Promoter) | 40,81,000 | 246.60 |
| Healthcare Parent Ltd. (Promoter) | 18,13,140 | 94.11 |
| Investcorp PE Fund II (Promoter) | 16,60,360 | 91.40 |
| Investcorp Growth Opportunity Fund (Promoter) | 1,47,765 | 241.00 |
| IFC (Non-promoter) | 30,89,663 | 54.67 |
| 360 One Special Opportunities Fund – Series 9 | 14,33,468 | 220.03 |
| 360 One Special Opportunities Fund – Series 10 | 4,44,675 | 220.03 |
| Investcorp India PE Opportunity Ltd. | 1,21,985 | 220.03 |
Objects of the Fresh Issue
| Use of Proceeds | Amount (₹ crore) |
|---|---|
| Opening 167 new dialysis clinics in India | 129.11 |
| Repayment/prepayment of borrowings | 135.99 |
| General corporate purposes | To be disclosed post pricing |
Financial Highlights (Consolidated)
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations (₹ Mn) | 7,558.12 | 5,661.55 | 4,372.95 |
| Net Profit / (Loss) (₹ Mn) | 670.96 | 351.33 | (117.89) |
| EBITDA Margin (%) | 22.05 | 17.60 | 11.11 |
| Return on Equity (%) | 13.45 | 8.76 | (3.00) |
| Total Clinics Operated | 490 | 436 | 316 |
| Net Debt / EBITDA Ratio | 0.58x | 1.83x | 3.77x |
As of March 31, 2025, the company had operations across 490 clinics in India and abroad, including Nepal, the Philippines, and Uzbekistan. About 31.79% of its revenue for FY25 came from international markets.
Market Position
- India’s largest dialysis provider by patients served and EBITDA in FY25
- 5th largest globally by number of dialysis sessions in FY25
According to Frost & Sullivan, Nephrocare is 4.4x the size of its nearest Indian competitor by revenue.
Key Risks Highlighted
- 43.3% of FY25 revenue came from captive clinics in private hospitals, which are subject to non-renewal risks.
- 32.6% revenue dependent on public-private partnership (PPP) contracts that are competitively bid.
- High attrition among nephrologists (53.05% in FY25).
- ₹290.04 Mn worth of receivables were provided for as loss allowance in FY25.
Book Running Lead Managers (BRLMs)
- ICICI Securities
- Ambit
- IIFL Capital
- Nomura
KFin Technologies is acting as the registrar to the offer.
About the Company
Nephrocare Health Services Ltd, founded in 2009 and headquartered in Hyderabad, operates under the “NephroPlus” brand. It provides comprehensive dialysis solutions, including in-clinic, home dialysis, and dialysis-on-wheels. The company’s clinical protocol system “RENASSURE” is ISO 9001:2015 certified.
The company’s equity shares are proposed to be listed on NSE and BSE post-IPO.
REF: https://nsearchives.nseindia.com/corporate/Registration_26072025082927_Nephrocare_Health_Services_Limited_DRHP.pdf
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