Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on December 16, 2025
- The company operates multispecialty hospital and related services chain in central Gujarat.
• It operates on an asset-light model of business with inorganic growth and lease rents.
• The company marked growth in its top and bottom lines for the reported periods.
• Boosted margins from FY24 onwards raise eyebrows and concern over its sustainability as the business is highly competitive and fragmented one.
• Based on its recent financial data, the issue appears greedily priced.
• Only well-informed/cash surplus/risk seekers may park moderate funds for medium term, others may skip.
ABOUT COMPANY:
Gujarat Kidney & Super Speciality Ltd. (GKASSL) is one of the regional healthcare companies located in the central region of state of Gujarat and operate a chain of mid-sized multispecialty hospitals, providing integrated healthcare services, with a focus on secondary and tertiary care. The company on a consolidated basis, operate seven (07) multispecialty hospitals and four (04) pharmacies operating within its Hospitals, Gujarat Kidney and Superspeciality Hospital (Vadodara), Gujarat Multispecialty Hospital (Godhra), Raj Palmland Hospital Private Limited (Bharuch), M/s. Surya Hospital and ICU (Borsad), Gujarat Surgical Hospital (Vadodara), Ashwini Medical Centre (Anand), Ashwini Medical Store (Anand) and Apex Multispecialty & Trauma Center (Bharuch) with a total bed capacity of 490 beds, approved bed capacity of 445 beds and operational bed capacity of 340 beds.
It endeavors to address all the needs of patients through its healthcare services. The company categorize its healthcare services as secondary services (which are surgical services) and Tertiary Services (which are super speciality surgical services). GKASSL’s hospitals are providing integrated diagnostic services, either in-house, and pharmacies that cater to patients. It has strategically focused on the relatively underpenetrated healthcare market in the state of Gujarat, India where the company has presence in four cities
The hospital sector forms the core part of Indian healthcare industry, which also include medical devices, clinical trial, medical tourism, telemedicine, health insurance and medical equipment. Hospitals is the largest segment and in the total healthcare market. Indian hospital industry witnessed significant growth, increasing from INR 2,400 billion in FY 2016 to INR 5,800 billion in FY 2023, further, it is estimated to have risen by 12% in FY 2024, reaching approximately INR 6,496 billion. Growth in the patient base due to changes in lifestyle, increase in noncommunicable diseases, growing elderly population, high discretionary income, and increasing penetration of health insurance schemes is expected to propel the healthcare delivery sector in the country during the coming decade.
GKASSL is in the process of acquiring another hospital named “Parekhs Hospital” situated at, Shyamal Cross Roads, Near Jivaraj Over Bridge, 132 Feet Ring Road, Satellite, E-Vejalpur, Ahmedabad – 380 051, Gujarat, India from Parekhs Hospital Private Limited, by utilising a portion of the Net Proceeds towards such acquisition. The said hospital was commissioned in the year 2006, with 49 beds including 8 beds across ICUs as of February 28, 2025. It endeavours to provide quality and affordable healthcare services to all its patients, and is on a proforma consolidated basis has 670 employees, 89 full-time consultants, and 238 visiting consultants as of November 12, 2025. The company wholly owns some of the hospitals but manage the operations of each of its hospitals through a separate professional management team.
Each of its hospitals is managed by a Chief Operating Officer, who is responsible for supervising day to day functioning. This structure provides it with greater control over its hospitals and helps it to deliver quality healthcare services. Given the geographical concentration of its hospitals in Gujarat, the company is well-placed to capitalise on the expected growth in the healthcare sector in Gujarat due to its strategically located hospitals, understanding of the regional markets and its nuances and due to its existing track record. Due to its long-standing operations, quality of medical care and long-term relationships with visiting consultants, fulltime resident doctors and other medical professionals, it has been able to become one of the key regional healthcare companies in central Gujarat. This is demonstrated by the fact that in the three-month period ended on June 30, 2025 and the financial year ended on March 31, 2025 is 94.54% and 90.00% of its revenue from operations has come from patients insured individually or from walk-in-patients. This indicates that individuals have preference to its hospital due to its continued quality offerings and moreover multiple specialities under one roof.
Its reputation, experienced management team, investment in medical technology, continual upgradation of its knowledge and sharing best practices has helped it to become a preferred choice for medical treatment, among masses. This has also helped it attract and retain talented healthcare professionals for its operations, which in turn draws more patients to its facilities and provides an added advantage.
The company operates through using leased property in Gujarat Multispecialty Hospital in Godhra and Gujarat Kidney and Superspeciality Hospital in Vadodara. In the past, it had acquired operational control in Raj Palmland Hospital Private Limited in Bharuch, M/s Surya Hospital and ICU in Borsad, Gujarat Surgical Hospital in Vadodara and Harmony Medicare Private Limited in Bharuch through acquisition of 51%, 90%, 90% and 51% holding respectively. Such acquisition of holding had allowed it to operate hospital without investing in land and building, medical equipment and necessary furniture and fixtures.
The company is also in the process of implementing this approach in future and propose to deploy an amount of Rs. 77 cr. from the Net Proceeds by acquiring Parekhs Hospital Private Limited in Ahmedabad, an operational medical facility offering multispecialty facilities under one roof. The aforementioned approach makes its Raj Palmland Hospital Private Limited (Bharuch), M/s Surya Hospital and ICU (Borsad), Gujarat Surgical Hospital (Vadodara), Ashwini Medical Centre (Anand) and Harmony Medicare Private Limited (Bharuch) asset-light in nature, offering increased returns. As of June 30, 2025, it had 89 full time Doctors, 238 part-time Doctors, 332 nurses.
ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 22000000 equity shares of Rs. 2 each (worth Rs. xx cr. at the upper cap). The company has announced a price band of Rs. 108 – Rs. 114 per equity shares of Rs. 2 each. The issue opens for subscription on December 22, 2025, and will close on December 24, 2025. The minimum application to be made is for 128 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes XXX% of the post-IPO paid-up equity capital. From the net proceeds of the fresh equity issue, the company will utilize Rs. 77.00 cr. for acquisition of Parekhs Hospital Pvt. Ltd., Rs. 12.40 cr. for part payment for purchase consideration for Ashwini Medical Centre, Rs. 10.78 cr. for acquisition of additional shareholding in Harmony Medicare Pvt. Ltd., Bharuch, Rs. 30.10 cr. for capex on setting up of new hospital in Vadodara, Rs. 6.83 cr. for buying robotics equipments for its Vadodara hospital, Rs. 1.20 cr. for repayment/prepayment of certain borrowings, and the rest for funding inorganic growth and general corporate purposes.
The company has reserved not less than 75% for QIBs, not more than 15% for HNIs and not more than 10% for Retail investors.
The sole Book Running Lead Manager (BRLM) to this issue Nirbhay Capital Services Pvt. Ltd., while MUFG Intime India Pvt. Ltd., is the registrar to the issue. Fortune Fiscal Ltd.is a syndicate member.
After issuing initial equity shares at par, the company has issued further equity shares in the price range of Rs. 125 – Rs. 1000 per share (based on FV of Rs. 2), between June 2024, and February 2025. It has also issued bonus shares in the ratio of 34 for 1 in February 2025. The average cost of acquisition of shares by the promoters is Rs. 0.06, and Rs. 3.85 per share.
Post-IPO, its current paid-up equity capital of Rs. 11.37 cr. will stand enhanced to Rs. 15.77 cr. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 898.81 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit/ -(loss), of Rs. 0.0001 cr. / Rs. – (0.01) cr. (FY23), Rs. 5.48 cr. / Rs. 1.71 cr. (FY24), and Rs. 40.40 cr. / Rs. 9.50 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 5.40 cr. on a total income of Rs. 15.27 cr.
For the last three fiscals, the company has (on proforma consolidated basis) posted an average EPS of Rs. 2.68 and an average RoNW of 38.72 %. The issue is priced at a P/BV of 13.95 based on its NAV of Rs. 8.17 as of June 30, 2025, and at a P/BV of 3.02 based on its post-IPO NAV of Rs. 37.70 per share (at the upper cap).
If we attribute FY26 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at negative P/E of 41.61. Based on FY25 earnings also, the P/E stands at 95.00. Thus, the issue appears greedily priced.
The company has (on proforma consolidated basis) posted PAT margins of 7.41% (FY23), 9.64% (FY24), 12.61% (FY25), 26.87% (Q1-FY26), and RoCE margins of 25.49%, 29.37%, 35.88%, 17.26%, respectively, for the referred periods.
DIVIDEND POLICY:
The company has not declared any dividends for the referred periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Yatharth Hospital, GPT Healthcare, KMC Speciality Hospitals, as its listed peers. They are currently trading at a P/E of 44.0, 26.7, and 39.9 (as of December 16, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.
MERCHANT BANKER’S TRACK RECORD:
This is the 5th mandate from Nirbhay Capital in the last three fiscals. Out of the last 4 listings, 2 opened at discount and the 2 with premium ranging from 8.70% to 10.87% on the date of listing. It has posted an average performance so far.
Conclusion / Investment Strategy
GKASSL operates multi-specialty hospital and related services chain in central Gujarat only. It operates on an asset-light model of business with inorganic growth and lease rents. The company marked growth in its top and bottom lines for the reported periods. Boosted margins from FY24 onwards raise eyebrows and concern over its sustainability as the business is highly competitive and fragmented one. Based on its recent financial data, the issue appears greedily priced. Only well-informed/cash surplus/risk seekers may park moderate funds for medium term, others may skip.
Review By Dilip Davda on December 16, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
