Gujarat Kidney and Super Speciality
- Gujarat Kidney and Super Speciality is coming out with a 100% book building; initial public offering (IPO) of 2,20,00,000 shares of 2 each in a price band Rs 108-114 per equity share.
- Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
- The issue will open for subscription on December 22, 2025 and will close on December 24, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 2 and is priced 54.00 times of its face value on the lower side and 57.00 times on the higher side.
- Book running lead manager to the issue is Nirbhay Capital Services.
- Compliance Officer for the issue is Niki Paresh Tiwari.
Profile of the company
Gujarat Kidney and Super Speciality is one of the regional healthcare companies located in the central region of state of Gujarat and operate a chain of mid-sized multispeciality hospitals, providing integrated healthcare services, with a focus on secondary and tertiary care. The company on a consolidated basis, operate seven multispeciality hospitals and four pharmacies operating within its Hospitals, Gujarat Kidney and Superspeciality Hospital (Vadodara), Gujarat Multispeciality Hospital (Godhra), Raj Palmland Hospital Private Limited (Bharuch), M/s. Surya Hospital and ICU (Borsad), Gujarat Surgical Hospital (Vadodara), Ashwini Medical Centre (Anand), Ashwini Medical Store (Anand) and Apex Multispeciality & Trauma Center (Bharuch) with a total bed capacity of 490 beds, approved bed capacity of 445 beds and operational bed capacity of 340 beds. It endeavours to address all the needs of its patients through its healthcare services.
The company categorizes its healthcare services as secondary services (which are surgical services) and Tertiary Services (which are super speciality surgical services). The company’s hospitals are providing integrated diagnostic services, either in-house, and pharmacies that cater to its patients. It has strategically focussed on the relatively underpenetrated healthcare market in the state of Gujarat, India where it has presence in four cities, which has provided it an understanding of regional nuances, patient culture and the mindset of medical professionals and where there is under-penetration of quality and affordable healthcare services.
The company endeavours to provide quality and affordable healthcare services to all its patients, and it on a proforma consolidated basis have 670 employees, 89 full-time consultants, and 238 visiting consultants as of November 12, 2025. It wholly owns some of the hospitals but manage the operations of each of its hospitals through a separate professional management team. Each of its hospitals is managed by a Chief Operating Officer, who is responsible for supervising day to day functioning. This structure provides it with greater control over its hospitals and helps it to deliver quality healthcare services.
Proceed is being used for:
- Proposed acquisition of “Parekhs Hospital Private Limited” at Ahmedabad
- Part payment of purchase consideration for the already acquired hospital i.e. “Ashwini Medical Centre”
- Acquisition of additional shareholding in its subsidiary namely “Harmony Medicare Private Limited” at Bharuch
- Funding of capital expenditure requirements of the company towards setting up of a new hospital exclusively for women’s health care in Vadodara;
- Buying robotics equipment for its hospital Gujarat Kidney & Super Speciality hospital at Vadodara location
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company
- Funding inorganic growth through unidentified acquisitions and General Corporate Purposes
Industry Overview
The Healthcare industry comprises of following broad segments - Healthcare Delivery (Hospitals), Pharmaceuticals, Diagnostics, Medical Equipment & Supplies, Health Insurance, Telemedicine, and Medical Tourism. Healthcare Delivery (Hospitals) is the largest segment, within the healthcare industry, accounting for about 80% share in total industry by value. The hospital sector forms the core part of Indian healthcare industry, which also include medical devices, clinical trial, medical tourism, telemedicine, health insurance and medical equipment. Hospitals is the largest segment and in the total healthcare market. Indian hospital industry witnessed significant growth, increasing from Rs 2,400 billion in FY 2016 to Rs 5,800 billion in FY 2023, further, it is estimated to have risen by 12% in FY 2024, reaching approximately Rs 6,496 billion. Growth in the patient base due to changes in lifestyle, increase in non-communicable diseases, growing elderly population, high discretionary income, and increasing penetration of health insurance schemes is expected to propel the healthcare delivery sector in the country during the coming decade.
India's healthcare sector stands at the forefront of a transformative era, offering landscape rich with opportunities across providers, payers, and medical technology. In response to heightened competition, businesses are keenly exploring the latest dynamics and emerging trends that promise positive impacts on their operations. Notably, the cornerstone of this growth lies in the hospital sector, according to the industry it is estimated to generate an annual turnover of nearly Rs 6,496 billion in FY 2024 and is projected to reach nearly Rs 8,200 billion by FY 2026. There are a few aspects within the hospital sector that are expected to drive growth in the coming years - including telemedicine, e-health services, and the medical tourism market. The National Digital Health Blueprint, spanning the next decade, holds the potential to unlock incremental economic value exceeding $200 billion for the healthcare industry in India.
The projected population increase from 121.1 crores to 151.8 crores by 2036, coupled with an aging demographic and a rise in non-communicable diseases (NCDs), highlights the evolving healthcare landscape. Challenges posed by NCDs and the increasing demand for elderly care services underscore the need for comprehensive and responsive healthcare systems. Furthermore, health challenges among the youth, ranging from malnutrition to lifestyle-related issues, contribute to the complex healthcare scenario. Additionally, the increasing geriatric population significantly fuels demand for tertiary healthcare services. Lifestyle changes, cost-effective lifesaving drugs, and improved healthcare accessibility are pivotal factors propelling this growth. Access to a vast population base and improved affordability, fueled by rising urbanization and income levels, further strengthens the demand for high-quality healthcare facilities. The penetration of health insurance, initiatives like AB-PMJAY, and a positive trend in health insurance coverage signify a transformative shift in healthcare accessibility. Overall, these factors, coupled with the incidence of lifestyle diseases and the rise of medical tourism, collectively shape a robust trajectory for the hospital industry in India.
Pros and strengths
Asset light business model with focus in central region of Gujarat: The company operates through using leased property in Gujarat Multispeciality Hospital in Godhra and Gujarat Kidney and Superspeciality Hospital in Vadodara. In the past, it had acquired operational control in Raj Palmland Hospital Private Limited in Bharuch, M/s Surya Hospital and ICU in Borsad, Gujarat Surgical Hospital in Vadodara and Harmony Medicare Private Limited in Bharuch through acquisition of 51%, 90%, 90% and 51% holding respectively. Such acquisition of holding had allowed it to operate hospital without investing in land and building, medical equipment and necessary furniture and fixtures.
Ability to attract, retain skilled and experienced quality medical professionals: The company maintains its standard of quality healthcare services by consistently employing and engaging a diverse pool of talented doctors, nurses and paramedical professionals. The company’s multi-disciplinary approach, combined with its high-volume tertiary care model, and its focus on teaching and research, has helped it to attract and retain talented doctors and other healthcare professionals. In Financial year ended March 31, 2025 and June 30, 2025, in the company the attrition ratio for full time doctors (who work as consultants at its hospital) was ranging from 2.40% and 2.99% respectively, the attrition ratio for visiting doctors was ranging from 2.10% and Nil respectively and the attrition ratio for nurses (who work as consultants at its hospital) was 0.85% and Nil, respectively, in the same periods.
Track record of operating and financial performance and growth: The company has a consistent track record of expanding its operations. Pursuant to its super-speciality offerings, the company has been able to minimise its concentration risk due to diversified revenue portfolio. As part of its expansion strategy, it focuses on quick break-even, likely profitability and high return on capital before it constructs or acquire hospitals. In addition to these financial metrics, it focuses on densely populated regions, while determining its expansion plans.
Accreditation of its hospital facilities: The company’s facilities in Gujarat Kidney and Superspeciality Hospital in Vadodara and Raj Palmland Hospital in Bharuch have received accreditations, from the National Accreditation Board for Hospitals and Healthcare Providers (the “NABH”). This accreditation is testament to its focus on the quality of medical services and reflects its strong commitment to work towards better health and cure of its patients and their care.
Risks and concerns
High dependence on a single hospital and region: The company’s revenues are significantly dependent on its Gujarat Kidney Hospital in Vadodara, Gujarat. Further, majority of the Hospitals of the company, entities controlled by the company and its Subsidiaries are located in the central Gujarat. Any impact on the revenues of its Gujarat Kidney Hospital or any change in the economic or political circumstances of western India or particularly in or around Vadodara or Central Gujarat, could materially affect its business, financial condition and results of operations.
Limited greenfield project experience of promoter and management: The company is relatively new to Greenfield projects, which involve the planning, development, and execution of new facilities, such as hospitals and other infrastructure. However, one of the promoters and Managing Director Pragnesh Bharpoda has a limited experience in execution of greenfield project i.e. construction of Gujarat Kidney and Super Speciality Hospital. These greenfield projects inherently carry risks, including delays in construction, cost overruns, and challenges in meeting regulatory and operational requirements. Due to its limited experience, it may encounter difficulties in completing these projects on time and within budget, which could have a negative impact on its financial performance, business operations, and overall reputation.
Impact of healthcare professional attrition on operations: The company’s operations depend on the skills, efforts, ability and experience of its healthcare professionals including doctors and nurses at its Hospitals. In the event, the company is unable to attract or retain professionals, quality of services may be impacted, thereby resulting in a loss of revenue from operations. There is no assurance that the attrition amongst its healthcare professionals will not increase in the future. The company’s doctors work with it as consultants under various arrangements including on a fixed fee basis (fixed monthly remuneration) and pay-for-services model (remuneration is calculated based on number of visits and other services provided and does not include any fixed monthly remuneration), and are permitted to practice outside of its Hospital beyond the committed business hours and to work at Hospitals that compete with the company. Any future inability to attract/ retain such professionals will adversely affect its business, financial condition and results of operations.
Competition from large hospital chains and regional players: The company operates in a competitive environment. In most markets, it competes with hospitals, clinics, diagnostic chains, and dispensaries of varying sizes and specialties. The company’s competitors also include healthcare facilities owned or managed by government agencies and trusts, which may be able to obtain financing or make expenditure on more favourable terms than private healthcare facilities such as the company. It competes on the basis of factors such as its speciality and other service offerings, quality and selection of healthcare professionals, affordability, quality of care, technology, quality of facilities, patient satisfaction, brand and reputation. It faces competition from players which operate in the same region as the company. It also faces competition mainly from hospital chains who provide secondary and tertiary healthcare services (across a myriad of specialties).
Outlook
Gujarat Kidney and Super Speciality specializes in providing multispeciality healthcare services, including secondary and tertiary care, across multiple locations in Gujarat. The company has track record of operating and financial performance and growth. On the concern side, the company’s revenues are significantly dependent on its Gujarat Kidney Hospital in Vadodara, Gujarat. Further, majority of the Hospitals of the company, entities controlled by the company and its Subsidiaries are located in the central Gujarat. Any impact on the revenues of its Gujarat Kidney Hospital or any change in the economic or political circumstances of western India or particularly in or around Vadodara or Central Gujarat, could materially affect its business, financial condition and results of operations.
The issue has been offering 2,20,00,000 in a price band of Rs 108-114 per equity share. The aggregate size of the offer is around Rs 237.60 crore to Rs 250.80 crore based on lower and upper price band respectively. Minimum application is to be made for 128 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased 742.89% from Rs 477.43 in Fiscal 2024 to Rs 4024.21 lakh in Fiscal 2025. Moreover, it recorded an increase in its profit for the year to Rs 949.94 lakh in Fiscal 2025 compared to profit after tax of Rs 171.40 lakh in Fiscal 2024.
The company continuously evaluate inorganic opportunities as and when they are available. It evaluates opportunities, that are strategically aligned, to its growth and complements its existing offerings and are value accretive. This shall help it to grow and improve its visibility and its operational parameters. It may pursue selective acquisitions and strategic alliances in its focus on micro-markets that provide it to access to better infrastructure, high-value technological and operational capabilities, industry knowledge and geographical reach, and allow it to expand its patient base and service offerings. Further, the company intends to leverage its experience to successfully identify, execute and integrate new opportunities that may arise in the future. In addition, the company has also entered into operations and maintenance arrangements with a corporate to manage their occupational health centres.
