IPO closes on 24 Dec'25
Gujarat Kidney & Super Speciality Ltd
Minimum Investment
₹ 14,592 / 128 shares
Our Verdict:
Avoid
- Multispecialty hospital chain Gujarat Kidney & Super Speciality Ltd (GKSSL) has shown improvement in profitability metrics and a gradual reduction in leverage in recent years. These trends indicate better operational discipline and balance-sheet management, which is a positive sign.
- However, the primary concern lies in the utilisation of IPO proceeds, which is largely acquisition-driven. The company’s future performance will therefore be highly dependent on its ability to execute and integrate multiple acquisitions efficiently. Such strategies inherently carry elevated execution and integration risks, particularly for a relatively smaller healthcare platform like GKSSL.
- Valuation further weakens the investment case. Based on restated financials, the IPO is priced at ~61x earnings, significantly higher than most listed hospital peers. Even on proforma financials, the valuation remains demanding at roughly 39x P/E, which appears stretched considering the company’s size and execution risks. Any delays in integration, cost overruns or underperformance of acquired assets could significantly impact earnings and valuations.
- At the current pricing, the IPO offers limited scope for near-term upside. Given the unfavourable risk–reward balance, it would be prudent for investors to avoid the IPO at this stage and instead monitor execution progress and financial performance over the next few quarters before making an investment commitment.
About the company
Founded in
20 Dec'19
Managing director
Dr. Pragnesh Bharpoda
- GKSSL operates a multispecialty hospital and allied healthcare services chain in Gujarat, with a strong focus on kidney care and advanced specialty treatments. Its offerings span general medicine and super-specialty procedures, including internal medicine, general surgery, minimally invasive surgeries, orthopaedics and trauma care, joint replacement, obstetrics and gynaecology, respiratory care, non-interventional cardiology, diabetology and anaesthesiology.
- GKSSL currently operates 7 multispecialty hospitals along with 4 in-house pharmacies. The hospital network has a total bed capacity of 490 beds, with an approved capacity of 455 beds and an operational capacity of 340 beds.
STRENGTHS
- Robust Growth: On a restated basis, revenue from operations increased by 743% in FY25, with EBITDA rising by 748% and net profit growing by 454% over FY24. Even on a proforma basis, revenue scaled meaningfully from Rs 85.79 crore in FY23 to Rs 119.97 crore in FY25, while PAT improved from Rs 6.35 crore to Rs 15.13 crore over the same period.
- Improving Margins: Operating profitability continues to strengthen. EBITDA margin improved from 40.86% in FY24 to 41.12% in FY25 and further expanded sharply to 56.52% in Q1FY26. Net profit margin, despite moderating to 23.61% in FY25, rebounded strongly to 35.41% in Q1FY26. On a proforma basis, PAT margin has shown steady expansion from 7.41% in FY23 to 12.61% in FY25 and further to 26.87% by Q1FY26.
- Strong Return Metrics: Return on Equity (ROE) improved from a negative (1.67%) in FY23 to 36.61% in FY25, while Return on Capital Employed (ROCE) rose from a negative (1.70) to 37.65% over the same period. Even on a proforma basis, the company reported robust ROE of 38.38% and ROCE of 35.88% as of FY25.
RISK FACTORS
- Geographic Concentration: GKSSL’s revenues are highly dependent on its Gujarat Kidney Hospital in Vadodara, with most facilities located in Central Gujarat. Any adverse economic, political or regional developments in this area could materially impact business performance.
- Execution Risk: The IPO proceeds are largely meant for acquisitions and capacity expansion. Delays in completing acquisitions, obtaining approvals or integrating operations could adversely affect growth plans and future performance.
- Bed Occupancy: The bed occupancy rate over the last three fiscal years has remained relatively low, ranging between 54% and 56%. Failure to improve or sustain adequate occupancy levels may restrict revenue generation, adversely impact operating efficiencies and negatively affect profitability.
- Limited History in Greenfield Projects: GKSSL has limited experience in executing greenfield hospital projects, which involve risks such as construction delays, cost overruns and regulatory challenges. These factors could impact timely project completion and financial outcomes.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 250.80 crore
Fresh Issue
₹ 250.80 crore
OFS
₹ -
Price range
₹ 108 - 114
Lot size
128 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Acquisition of Parekhs Hospital Pvt Ltd, Ahmedabad
- Part payment of the purchase consideration for the already acquired Ashwini Medical Centre;
- Acquisition of additional equity stake in the subsidiary, Harmony Medicare Pvt Ltd, Bharuch;
- Setting up a new hospital exclusively focused on women’s healthcare in Vadodara;
- Purchase of robotic equipment for the Gujarat Kidney & Super Speciality Hospital, Vadodara;
- Repayment or prepayment of certain outstanding secured borrowings of the company; and
- Funding inorganic growth through unidentified acquisitions and for general corporate purposes.
Dates
Bidding open
22 Dec'25
Bidding close
24 Dec'25
Allotment date
26 Dec'25
Refund date
29 Dec'25
Listing
30 Dec'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.