MC EXCLUSIVE Dialysis chain NephroPlus to file papers for Rs 2,000-crore IPO this month

Dialysis chain NephroPlus to file papers for Rs 2,000-crore IPO this month

Nephrocare Health Services Ltd, which operates Asia’s largest dialysis network under the brand NephroPlus, is preparing to file papers for a Rs 2,000-crore initial public offering (IPO) later this month, sources have told Moneycontrol.

Founded in 2010 by Vikram Vuppala and Kamal D Shah, the Hyderabad-based company operates more than 447 dialysis centres across India and has a presence in the Philippines, Uzbekistan and Nepal.

The company plans to use the proceeds from the IPO,  the first mainboard listing in India’s fast-growing dialysis sector, to scale operations, including acquisitions of mid-sized dialysis firms in India and the Philippines, sources said.

Recently, India Ratings upgraded NephroPlus's rating to “IND A+/Positive”, reflecting its robust financial performance and improved return on capital employed (ROCE). The upgrade applies to its bank facilities and working capital limits, signalling enhanced credibility in the healthcare financing market.

India Ratings cited NephroPlus’ strong business profile, diversified operations and scalable, cost-efficient expansion strategy as key drivers for the upgrade.

The company’s consolidated revenue rose 39 percent year-on-year to Rs 749.4 crore in FY25, with EBITDA margins improving to 22.5 percent. Net leverage dropped to 0.40x, and interest coverage surged to 8.04x, underscoring financial discipline.

Private equity firm Quadria Capital has invested Rs 850 crore in NephroPlus since 2024, acquiring shares from Investcorp, Bessemer Venture Partners, IFC, and IIFL Private Equity.

NephroPlus is planning to add 70–75 centres annually in India and 16 centres a year in the Philippines. It also holds a 51 percent stake in a Saudi Arabian joint venture and is bidding for new projects in the region.

The IPO will be managed by ICICI Securities, IIFL Capital Services, Nomura, and Ambit Capital.

India’s dialysis market is projected to grow to $870 million by 2030, at a CAGR of 6.5 percent. NephroPlus commands over 50 percent market share in the organised segment, benefiting from long-term public-private partnership (PPP) contracts and partnerships with leading hospital chains such as Max Healthcare, Fortis, and Medanta.