Shares of Gujarat Kidney and Super Speciality listed at 6% premium over IPO price on Tuesday. The stock opened at Rs 120.75 and Rs 120 on BSE and NSE, respectively, as compared to its issue price of Rs 114.

The Rs 251 crore IPO, which was entirely a fresh issue, was priced at the top end of the band at Rs 114 per share, valuing the healthcare company at a pre-IPO market cap of about Rs 898.8 crore.

Despite the muted grey market signals, investor participation in the issue was healthy. The IPO was subscribed 5.21 times overall, driven primarily by strong retail demand, which came in at 19.04 times its quota. Non-institutional investors subscribed 5.73 times, while qualified institutional buyers subscribed 1.06 times of the non-anchor portion.

The company also raised Rs 100 crore from anchor investors ahead of the issue, lending a degree of institutional support to the offering.

At the issue price, Gujarat Kidney is valued at around 42 times post-IPO earnings, based on FY25 numbers, and over 22 times book value.

Founded in 2019, Gujarat Kidney and Super Speciality operates a network of seven multispeciality hospitals and four pharmacies across Gujarat, with an operational bed capacity of about 340 beds. The company has built a strong presence in renal sciences and super-speciality procedures, while following an asset-light model focused on leased facilities and inorganic expansio

Financial performance has been strong on paper. Revenue surged more than six-fold in FY25, while profit after tax rose over four times, aided by higher occupancy and improving margins. EBITDA margin stood above 41% in FY25, though some analysts have flagged sustainability concerns given the competitive and fragmented nature of the hospital sector.

The IPO proceeds are earmarked largely for expansion and acquisitions, including the proposed purchase of Parekhs Hospital in Ahmedabad, setting up a new hospital in Vadodara, and funding inorganic growth opportunities. While these plans offer a clear growth runway, investors appear to be factoring in execution risks and valuation comfort, keeping grey market enthusiasm in check.

Investors will be watching closely whether post-listing performance justifies the premium valuation in a sector where growth visibility and operational execution remain critical.

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