Dialysis service provider NephroPlus is getting ready to go public and is looking to raise USD 200-250 million (~INR 2,127 crore) through IPO. The Hyderabad-based company has appointed top investment banks to manage the Nephroplus IPO as it looks to fuel further domestic and international expansion.
ICICI Securities, IIFL Capital Services, Nomura and Ambit Capital have been hired to advise and manage the NephroPlus IPO process. NephroPlus is expected to file its draft prospectus with regulators in the next three months and list next year.
NephroPlus IPO will have a fresh issue of shares to raise growth capital and a partial exit for existing investors including private equity backers Investcorp and Quadria Capital.
Strong Financials Back IPO Plans
NephroPlus goes public after a strong financial turnaround in FY24. The company posted a INR 35 crore net profit reversing a INR 12 crore loss in FY23. Operating revenue grew 29% year-on-year to INR 566 crore from INR 438 crore.
Key performance indicators for FY24 are:
- EBITDA margin: 18.96%
- Return on Capital Employed (ROCE): 9.40%
- Cost-to-revenue ratio: INR 0.96 spent to earn every rupee
Cost discipline was key to the improved performance. While material costs was the largest expense at INR 169 crore, other major expenses like healthcare professional fees and hospital charges increased due to network expansion. Employee benefit expenses declined slightly to INR 91 crore due to optimization.
Global Footprint Expanding
With a growing presence, NephroPlus now has 450+ dialysis centres across 250+ cities and towns in India, Philippines and Uzbekistan. Domestically, the company has 275+ centres in over 170 Indian cities and serves nearly 20,000 patients every month. Indian operations accounted for 95% of total revenue in FY24.Globally, NephroPlus has been expanding fast. It recently acquired seven dialysis clinics in the Philippines and plans to enter Saudi Arabia later this year, marking its foray into the Middle East.
So far, the company has raised around INR 21.2 crore in private capital. Notable investors include IFC (International Finance Corporation) and Bessemer Venture Partners among others. Co-founder and CEO Vikram Vuppala holds an 11.6% equity stake in the company.
A Growing Sector
NephroPlus IPO comes at a time when there is growing awareness and demand for chronic kidney care in India and other emerging markets where diabetes and hypertension—the two biggest causes of kidney failure—are on the rise. The dialysis segment is still underpenetrated in many regions and offers long-term growth opportunities.
With strong financials, a proven model and an expanding global presence, NephroPlus is well-placed to capture market share and attract investor interest. NephroPlus IPO will also be a test case for healthcare service providers looking to tap the capital markets as demand for specialized care grows.
Conclusion
NephroPlus IPO plan reflects both confidence in its business fundamentals and a broader industry shift toward scalable, quality-driven healthcare delivery. As the company prepares to go public, investors will be watching closely to see how this healthcare leader charts its next chapter on the global stage. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.