Investors including Quadria Capital are poised to reap substantial returns as dialysis services provider NephroPlus aims for a valuation of over $500 million.
NephroPlus, the country's largest dialysis chain, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) aiming to raise approximately ₹353.4 crore.
The IPO will consist of a fresh issue of equity shares and an Offer for Sale (OFS) of about 1.27 crore shares by promoters and existing shareholders, including Investcorp Private Equity Funds, Healthcare Parent Ltd, and others.
The proceeds from the fresh issue will primarily be used for expanding the dialysis network by opening new clinics in India, with an allocation of around ₹129.1 crore. The remaining funds will be used for repaying debt, approximately ₹136 crore, and for general corporate purposes.
NephroPlus currently operates over 440 clinics across 269 cities in 21 Indian states and has a presence in the Philippines, Nepal, Uzbekistan, and Saudi Arabia. The company is a dominant player with a domestic market share exceeding 50% in FY24.
Initially, the IPO was planned to raise a significantly larger amount (~₹2,000 crore) through the combination of fresh equity and OFS, intended to finance expansion and acquisitions domestically and internationally. However, the finalized DRHP value now shows a fresh issue target of about ₹353 crore with an OFS, implying a scaled-down or phased approach to the public offering.
The book-running lead managers appointed for the issue include ICICI Securities, IIFL Capital Services, Nomura, and Ambit Capital.
This IPO marks a key milestone in NephroPlus’s plan to consolidate its leadership in the fast-growing renal care market.
Meanwhile, BlueFive Capital, a private equity firm, has successfully hit the final close of its debut PE fund at $2 billion. The fund is aimed at fueling private investment activity in the MENA region.
On the other hand, Wingreens Farms, an Investcorp-backed company, is targeting fresh funding, with the fund closing scheduled for the second half of 2025.
Private equity and institutional investors, including Quadria Capital, Investcorp, International Finance Corporation (IFC), and 360 One, are investors in NephroPlus. The IPO of NephroPlus is not related to any other companies or entities mentioned in this article.
References:
- ETMarkets
- Business Standard
- Livemint
- Financial Express
The IPO of NephroPlus aims to raise approximately ₹353.4 crore, with the proceeds primarily used for expanding the dialysis network and repaying debt.
The remaining funds will be allocated for general corporate purposes, as NephroPlus strives to consolidate its leadership in the renal care market.
