Nephro Care India Ltd IPO: Review, Valuation, Date & GMP

Nephro Care India Limited IPO-Complete Overview

Nephro Care India Limited, a comprehensive treatment center in Kolkata, was incorporated in 2014 and provides patients with therapy for renal insufficiency along with a wide range of clinical and lifestyle treatments. Supporting Nephro Care are knowledgeable physicians, seasoned paramedics, and a proficient management group.

Approximately 900 patients with chronic kidney disease receive medical care from the facility each month. The hospital employs 70 skilled paramedical workers, 10 visiting consultants, and 5 permanent physicians. These services are provided out of its 5,352 square foot main clinic in Salt Lake as well as three satellite clinics in Salt Lake (HB 113) and Chandannagar, West Bengal.

Currently, Nephro Care's clinics provide the following services:

• Dialysis Unit on-site Outpatient Services

• Fields of internal pathology that is accredited by NABL, including Nephrology, Diabetology, Cardiology, Ophthalmology, and Neurology

• Advanced diagnostic facilities in in-house pharmacy

• Department of Renal Nutrition

• The Lifestyle Support Program, or Home Care Mukti

• Dialysis at Home
  
  

There are 110 employees in the hospital across several departments as of March 31, 2024.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on June 28, 2024.

 

 

Let's take a closer look at the IPO's offerings below.

Nephro Care India Limited IPO Overview

Nephro Care India Limited IPO is an SME book-built issue of Rs.41.26 crore with a whole Fresh Issue of 45.84 lacs shares (amounting to Rs.41.26 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on June 28, 2024, and conclude on July 2, 2024. The anticipated listing date for the IPO is Friday, July 5, 2024, and it will be held on the NSE and SME. The price band of the share is Rs.85 to Rs.90.

If You want to apply for this IPO, Click Here to Open a Demat Account.

 

Company Financial

Nephro Care India Limited's revenue climbed by 398.84%, while profit after tax (PAT) increased by 19920.41% during the fiscal years ending March 31, 2023, and March 31, 2022. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2023.

• The company’s total revenue is over Rs.1-100 crore.

• The net worth of the company has climbed by 1,519.35%.

• The company's EBITDA is gained by 4,161.49%.

• The total assets of the company rose by 73.98%

• The Liabilities of the company increased by 109.62%.

(Amount in Lacs)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	2,029.85	831.11	462.93
Total Revenue	1,989.60	1,709.51	342.70
PAT	340.04	194.24	-0.98
Net worth	1,392.32	243.76	49.52
Reserve & Surplus	1,332.81	193.76	-0.48
Total Borrowings	-	246.39	253.74

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in Lacs)

Net Cash flow in various Activities	31 Dec 2023	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	172.22	430.81	61.73
Net Cash Flow Investing Activities	750.20	251.90	281.06
Net Cash Flow Financing Activities	562.01	8.15	232.01

 

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Establishing a multispecialty hospital in Kolkata, West Bengal (Madhyamgaram), under the name "Vivacity Multi Specialty Hospital" (a unit of Nephro Care)

• General corporate expenses.

 

Peers of Nephro Care India Limited

As per Nephro Care India Limited’s DRHP, there are no such listed peer groups similar to its business.

Evaluation

The price of this IPO is Rs.85 to Rs.90 for each share.

Evaluation of P/E Ratio

With the earnings as of 31 March 2023, EPS of Rs.1.63 from the previous year, the resulting P/E ratio is 55.15x. 

By considering the EPS of Rs.2.75 for the annualized earnings as of December 31, 2023, the P/E ratio is equal to 32.73x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is not available.

IPO's Strengths

• By addressing unmet needs through a combination of cutting-edge medical science and tried-and-true yogic knowledge, it closes the gap between daycare and tertiary care services for the benefit of our patient's overall welfare.

• The strength of its technological foundation allows it to continuously enhance the effectiveness and caliber of the services it provides.

• A history of growth and success in operations and finances.

• Expert administration and seasoned guidance.

• The affordability of the clinical services delivery framework, processes, and infrastructure investments produce a compelling value proposition for stakeholders.
  
  

IPO’s Weaknesses

• Because Dr. Pratim Sengupta, the firm's promoter, is so important to its operations and the company depends so much on his expertise, the promoter must continue to be involved in the company's operations.

• The company may face additional risks and problems as a result of its development into a new business vertical-opening a hospital.

• The company's flagship clinic in Salt Lake is a major source of revenue. Moreover, Kolkata is home to all of its clinics. Any effect on the profits of its flagship Salt Lake clinic or a shift in West Bengal's political or economic landscape, especially in or near Kolkata, might have a significant impact on the company's operations, finances, and outcomes.

• The company's business, financial situation, and operational outcomes will all suffer if it is unable to continue attracting and retaining healthcare professionals, such as doctors and nurses.

• Due to the strict regulations imposed by its industry, it must obtain, renew, and maintain all necessary statutory and regulatory permissions, accreditations, and licenses. Additionally, it must abide by all applicable labor, environmental, safety, and health laws. Its business, financial situation, and operational outcomes could be negatively impacted by any changes to the regulations or by breaking these laws and regulations.
  
  

 

IPO GMP Today

The Latest GMP of Nephro Care India Limited IPO is Rs.180

 

Nephro Care India Limited IPO Timetable (Tentative)

The IPO is scheduled from June 28 to July 02, 2024, with allotment on July 3, refund initiation on July 4, and listing on July 5, 2024.

Events	Date
IPO Opening Date	June 28, 2024
IPO Closing Date	July 2, 2024
IPO Allotment Date	July 3, 2024
Refund initiation	July 4, 2024
IPO Listing Date	July 5, 2024

 

Nephro Care India Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on June 28, close on 2 July, and offer a total issue size of 4,584,000 Shares (aggregating up to Rs.41.26 Cr) a whole fresh issue.

IPO Opening & Closing Date	June 28, 2024 to July 2, 2024
Face Value	Rs.10 per share
Issue Size	4,584,000 Shares (aggregating up to Rs.41.26 crore)
Offer for Sale	-
Fresh Issue	4,584,000 Shares (aggregating up to Rs.41.26 crore)
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

Nephro Care India Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (1600 shares) amounting to Rs.144000, while for HNI investors, the minimum lot is 2 (3200 shares) amounting to Rs.288000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
S-HNI (Min)	2 lots

 

Nephro Care India Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters and Management of Nephro Care India Limited IPO

•  Dr. Pratim Sengupta

Pre-issue Promoter shareholding	85.02%
Post-issue Promoter shareholding	-

 

 

Nephro Care India Limited IPO Lead Managers

Corporate Capitalventures Pvt Ltd

 

Dividend Policy

The company has not declared a dividend policy in the last three financial years.  

 

Conclusion

The company has noticed a fall in its liabilities and an increase in net worth and total revenue in the previous Financial Year(s). To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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