Files DRHP with SEBI
Hyderabad-based Nephrocare Health Services, known for its brand NephroPlus, has filed the draft red herring prospectus (DRHP) with the capital markets regulator, SEBI, to raise funds through an initial public offering (IPO).
Vikram Vuppala, BVP (Bessemer Venture Partners) Trust, Edoras Investment Holdings, Healthcare Parent Limited (HPL), Investcorp Private Equity Fund II (IPEF II) and Investcorp Growth Opportunity Fund (IGOF) are the Promoters of the Company.
According to the DRHP, the proposed IPO of the company comprises a fresh issue of equity shares aggregating up to Rs. 353.4 crore 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 utilise the Net Proceeds of the Fresh Issue towards capital expenditure to the tune of Rs 129.1 crore for opening new dialysis clinics in India; Rs 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 Rs 70.6 crore; before 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.
In FY25, NephroPlus reported revenue from operations of Rs 755.8 crore and profit after tax of Rs 67 crore.
Currently, kidney disease is the third fastest-growing cause of death globally, and diabetes and hypertension have been recognised as the two leading drivers of chronic kidney disease (CKD). Rapid urbanisation and lifestyle changes have further contributed to the increased incidence of CKD.
ICICI Securities, Ambit Private Limited, IIFL Capital Services and Nomura Financial Advisory and Securities (India) are the Book Running Lead Managers to the issue.
