Gujarat Kidney shares expected to list flat tomorrow; should you buy, sell or hold?

Gujarat Kidney shares to list on December 30. 

Gujarat Kidney and Super Speciality shares are expected to list flat on the exchanges on December 30 after the company’s initial public offering was subscribed 5.21 times during December 22–24.

According to platforms tracking the grey market activities, the shares of the company are commanding a flat GMP in the unofficial market.

The Rs 251-crore IPO was priced in a band of Rs 108–114 per share. The company had earlier raised a little over Rs 100 crore from anchor investors.

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 the industry expanded from Rs 2,400 billion in FY2016 to about Rs 6,496 billion in FY2024 and is projected to reach nearly Rs 8,200 billion by FY2026.

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.

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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.

The funds will also be used for setting up a new hospital in Vadodara, purchasing robotics equipment for the Vadodara hospital, debt repayment, funding inorganic growth through unidentified acquisitions and for general corporate purposes.

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