Nephro Care India IPO listing: Shares list at 90% premium on NSE Emerge platform; check details

Nephro Care India shares made a strong debut on Friday, July 5, listing at a premium of 90% at ₹171 apiece against the issue price of ₹90 on the National Stock Exchange (NSE) Emerge platform.

The SME IPO had received a whopping subscription of 715.85 times during the three-day bidding window from June 28 to July 2. The ₹41.26 crore public offer received bids for ₹223 crore shares against 31,15,200 shares on offer.

Heavy participation was witnessed from institutional investors, who subscribed 1,787.5 times their allotted quota. The part set aside for retail investors was subscribed 634.12 times, while the qualified institutional buyers (QIBs) portion received 245.14 times subscription.

The healthcare provider had also raised a little over ₹11 crore from anchor investors before the IPO.

The initial share sale, a fresh issue of 45.84 lakh shares, had set a price band of ₹85 to ₹90 per scrip.

The kidney care provider will use ₹26.17 crore from IPO proceeds to develop a multi-speciality healthcare facility at Madhyamgram near Kolkata. The funds will also be used for general corporate purposes.

The new hospital is planned to have 100 in-patient beds and will offer treatment services like medical oncology, cardiology, gastroenterology and gynaecology.

For the first nine months of the financial year 2023-24, the company reported a revenue of ₹19.75 crore and profit after tax of ₹3.4 crore.

NSE puts price control cap of 90% on SME IPOs

Nephro Care India shares listing comes at a time when the NSE has imposed an overall capping of 90% over the issue price for SME IPOs during the special pre-open session.

"To standardise the opening price discovery/ equilibrium price across exchanges during special pre-open session for initial public offer (IPO) for the SME platform, it has been decided to put an overall capping up to 90% over the issue price for SME IPOs," NSE said in a circular, adding that the announced is effective from July 4, 2024.

It should be noted that the 90% price control cap applies only to the SME segment and not to mainboard IPOs.

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