Nephrocare Health Services, known for its brand NephroPlus, a dialysis services provider, has filed the draft red herring prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise ₹353.4 crore through an initial public offering (IPO).
According to the DRHP, the proposed IPO of the Hyderabad-based company is a combination of a fresh issue of equity shares aggregating up to ₹353.4 crores and an offer for sale (OFS) of up to 1,27,92,056 equity shares (1.27 crore equity shares) by the selling shareholders.
As part of the OFS, the Promoter Selling Shareholders include Investcorp Private Equity Fund II, Healthcare Parent, Investcorp Growth Opportunity Fund and Edoras Investment Holdings, and other selling shareholders include Investcorp India Private Equity Opportunity, International Finance Corporation, 360 One Special Opportunities Fund – Series 9 and 360 One Special Opportunities Fund – Series 10.
NephroPlus proposes to use the funds raised towards capital expenditure to the tune of ₹129.1 crore for opening new dialysis clinics in India; ₹136 crore for pre-payment or scheduled repayment of certain borrowings availed by the company, and the rest on general corporate purposes.
The company, in consultation with the BRLMs, may consider a Pre-IPO Placement aggregating up to ₹70.6 crore, prior to filing of the Red Herring Prospectus with the ROC. If the pre-IPO Placement is undertaken, then the fresh issue will be reduced to the extent of such pre-IPO placement.
NephroPlus, incorporated in 2009, is the largest organized dialysis service network in India, having 447 clinics across 269 cities in 21 states and 4 Union Territories, and serving more than 33,000 patients globally on an annual basis, and has a revenue market share of over 50% in India’s organized market (in terms of number of treatments). It has also expanded its international footprint to include Philippines (34 clinics), Uzbekistan (4 clinics), Nepal (5 clinics) and has entered the Middle East market through the Kingdom of Saudi Arabia recently.
It offers both haemodialysis, with capabilities such as home haemodialysis, hemodiafiltration, holiday dialysis, dialysis on call, and dialysis on wheels, ensuring patients have access to the most suitable and convenient treatment options. As of March 31, 2025, NephroPlus had more than 5,000 dialysis machines and had performed over 3.30 million treatments.
In FY25, NephroPlus reported revenue from operations of ₹755.8 crore and profit after tax of ₹67 crores.
Currently, kidney disease is the third fastest-growing cause of death globally, and diabetes and hypertension have been recognized as the two leading drivers of chronic kidney disease (CKD). Rapid urbanization and lifestyle changes have further contributed to the increased incidence of CKD.
ICICI Securities, Ambit, IIFL Capital Services, and Nomura Financial Advisory and Securities (India are the Book Running Lead Managers to the issue.
