Gujarat Kidney shares settle 9% lower from issue price on debut day

Gujarat Kidney shares listed on exchanges on December 30. 

Gujarat Kidney shares settled 9.25 percent lower at Rs 103.46 per share on the NSE on debut day.

The shares listed at a decent premium of more than 5 percent over its initial public offer (IPO) price on the exchanges on Tuesday, following a 5.21 times subscription to the issue between December 22-24 in the primary market.

Shares of Gujarat Kidney And Super Speciality were listed at Rs 120 per share on the National Stock Exchange (NSE), a premium of 5.26 percent. The Rs 251-crore issue had a price band of Rs 108-114 per share.

On the BSE, the shares of the company were listed at Rs 120.75 per share, a premium of 5.92 percent. The company's market capitalisation post listing of shares stood at Rs 952.03-crore.

Gujarat Kidney share market debut was better than the expectations in the grey market, which had expected a flat listing for the shares of the company.

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Commenting on the sector outlook, Ravi Singh, Chief Research Officer at Master Capital Services Ltd, said India’s hospital industry is witnessing sustained structural growth supported by rising healthcare needs and government initiatives.

He said that government schemes such as Ayushman Bharat are likely to improve hospital occupancy levels, while investments in government hospitals, medical colleges and new AIIMS institutions are strengthening long-term prospects for the sector.

"With a growing footprint across multiple cities, supported by integrated diagnostics and pharmacy services and a focus on affordable healthcare in underpenetrated markets, Gujarat Kidney and Super Speciality Ltd is positioned to benefit from rising healthcare demand," Singh said.

He said the company plans to improve operational efficiency through greater integration across hospitals and continued investments in medical technologies, equipment and specialised talent.

"Investors may consider the IPO as a potential long-term investment opportunity," Singh added.

Proceeds from the fresh issue will be used for the proposed acquisition of Parekhs Hospital in Ahmedabad and part-payment towards the purchase consideration for Ashwini Medical Centre.

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