Delta Investment Advisors

Gujarat Kidney & Super Speciality Ltd (GK&SSL)

The company operates multispeciality secondary and tertiary hospitals in Gujarat region. It has 7 hospitals and 490 total beds capacity. The company founded by Dr. Pragnesh Bharpoda in 2019, acquired its promoter’s hospitals present in Vadodara & Godhra in 2024. GK&SSL is owned entirely by its promoters and has not raised any external funding in the past.

RHP filed: 12th December 2025

BRLM: Nirbhay Capital Services

Auditor: Y. M. SHAH & Co.

Disclaimer - Delta Partners (public market division under Dexter Capital) is not a SEBI registered Investment Advisor and this report does not constitute a recommendation but is only prepared for educational purposes. We (our team members including our directors) may or may not apply to IPO.

This note is not reviewed by our CIO - Devendra Agrawal, CFA. It is prepared by our team of Investment Analysts, and is reviewed by our senior team members. Any questions related to the IPO can be directed to shubham@deltainvest.in and we will come back.

We at Delta Partners continue to analyze many business and IPOs. Investors interested to be part of this network are requested to fill the form & our team will reach out with more details. [Click Here]

Delta’s View : Skip

Gujarat Kidney & Super Speciality Ltd is still at an early stage of its growth journey, with limited operating history at the consolidated level. The IPO ask valuation ~899 cr is on a higher side given that its actual consolidated revenue was just ~40 cr (FY25) and pro forma revenue (combining acquisitions & proposed acquisitions) was ~120 cr (FY25), making its actual valuation ~20x P/S TTM and pro-forma valuation ~7x TTM. This valuation doesn’t provide much comfort at this point and we would prefer to wait a few quarters to analyze management’s execution and synergy benefits to play out.

A GMP of 2% (24th Dec) suggests a flat listing, provided that the GMP sustains.

The company was incorporated in 2019 by Dr. Pragnesh Bharpoda. It acquired the promoter’s companies – Gujarat Kidney & Superspeciality Hospital (Vadodara) and Gujarat Multispeciality Hospital (Godhra) in 2023, due to which its revenue jumped to ~40 cr in FY25. The company has been aggressive in its acquisitions since last year, having acquired stake in Raj Palmland Hospital, Harmony Medicare, Ashwini Medical centre (AMC) and Surya hospital.

Furthermore, It plans to utilise 77 cr for acquiring Parekhs Hospital (PHPL), 12.4 cr for payables of already acquired Ashwini Medical centre (AMC) and 11 cr for completing 100% acquisition of Harmony Medicare (HMPL). The aggregate consideration for its acquisitions in the last year was ~116 cr while the company has IPO ask valuation of ~899 cr, which seems very high when the company has built almost its entire value through acquisitions. Both its major acquisitions – PHPL and AMC are being acquired at a multiple of ~3x Sales despite their flat sales growth. The Avg Revenue Per Operating Bed (ARPOB) is very low ~10,255 Rs (FY25) in comparison to large listed healthcare players, which had ARPOB in the range of (30,000 - 74,000 Rs). Also, this would be the first Mainboard IPO for its issue banker and it had delivered negative returns in some of its recent SME IPOs post listing.

The IPO’s ask valuation is ~20x P/S & 72x P/E on basis of actual consolidated financial statements and ~7.4x P/S & 46x P/E on basis of unaudited Pro-forma statements (includes acquisitions & proposed acquisitions). Its revenue was just 4.8 cr in FY24, which jumped to 40 cr in FY25, due to acquisitions of some promoter companies and stake acquisitions in other regional hospitals present in Gujarat region.

It has a total of 7 hospitals currently with most of the expansion happening only in the last year through acquisitions. It acquired 51% stake in Raj Palmland (RPPL), 90% in Gujarat Surgical Hospital (GSH), 90% in Surya Hospital, 100% in Ashwini hospitals and a 51% stake in Harmony medicare (HMPL).

It proposes acquiring 100% of Parekh’s Hospital Pvt. Ltd. (PHPL) for a consideration of ~79 cr, which is 3x of its FY25 Sales despite it having flat sales growth in the last 2 years. It acquired Ashwini Medical Centre (AMC) for ~14 cr in 2025 for which 12.4 cr is still payable. This acquisition was also at a valuation of ~3x P/S. Proceeds of 11 cr will be used to fully acquire Harmony Medicare (HMPL) at a valuation of ~0.5x P/S.

After combining the total value of the consideration it paid since the last year for acquisitions, the amount is still ~116 cr, while the ask valuation is ~899 cr which seems on a much higher side.

The company had an operational bed capacity of just 340 beds with Avg Revenue Per Operating Bed (ARPOB) of just 10,255 Rs. This is much lower than the industry where listed players like Yatharth hospitals, Fortis Healthcare, Apollo hospitals, Paras Hospitals had an ARPOB of 31k rs, 66k rs, 61k rs and 49k respectively.

Business

The company operates a chain of mid-sized multi speciality hospitals in Gujarat with a focus on secondary & tertiary care.

It operates 7 hospitals on a consolidated basis in Vadodara, Godhra, Bharuch, Borsad and Anand in Gujarat.

It had a total bed capacity of 490 beds, approved bed capacity of 445 beds and operational bed capacity of 340 beds.

Issue Details

Fresh issue size - Amount → 251 cr ; Shares → 22 mil ; To be utilized in -

Acquisition of Parekh’s Hospital Pvt. Ltd. (PHPL) → 77 cr (31%)

Total purchase consideration for the 100% acquisition ~79 cr out of which 2 cr had already been paid. The company is acquiring the PHPL ~3x P/S. The company had signed the term sheet with PHPL.

Part-payment for already acquired Ashwini Medical Centre (AMC)→ 12.4 cr (5%)

The company had completed acquisition for Ashwini Medical Centre on Feb 25, but had paid just 1.6 cr until the RHP filed date. A remaining 12.4 cr is payable for the company. The company acquired AMC ~3x P/S.

Payment towards full acquisition of Harmony Medicare Private Limited (HMPL) → 10.8 cr (4%)

The company decided total lump sum consideration of 22 cr, where acquisition would be

completed in 2 tranches - 51% for 11.22 cr and 49% for 10.78 cr (Before Jan 31, 2026).

51% transaction or Tranche 1 has been completed. The company is acquiring the HMPL

~0.5x P/S.

CapEx for setting up a new hospital for Women’s healthcare in Vadodara → 30.1 cr (12%)

Buying robotics equipment for the hospital → 6.8 cr (3%)

Repayment of certain outstanding secured borrowings availed by the Company → 1.2 cr

Funding inorganic growth through unidentified acquisitions and General Corporate Purposes

Promoters and Leadership

Dr. Pragnesh Bharpoda founded the company Gujarat Kidney Hospital in 2014. It established & commenced operations of a second hospital in Godhra, Gujarat in 2023. The Gujarat Kidney Hospital and the Godhra Hospital, were subsequently acquired by the company in 2024. He is the sole proprietor of the company and also a director in Harmony Medicare Private Limited.
Dr. Pragnesh Bharpoda serves presently as the Chairman and Managing Director of the company. He holds a bachelor’s degree in surgery from Gujarat University. He has a master’s degree in surgery (general surgery) from Dr. D. Y. Patil Vidyapeeth and a master’s degree in urology from Amrita Vishwa Vidhyapeetham University.
He heads the urology and nephrology department in Gujarat Kidney Hospital and Godhra Hospital, having undertaken many renal transplantations, laparoscopic procedures, endoscopic urological procedures and open surgeries during his experience.
His wife Dr. Bhartiben Pragnesh Bharpoda is the Whole-time Director of the company and she offers physiotherapy consultancy services in the hospitals managed by the company.
Pragnesh’s sister – Dr. Nikita Bharpoda and his Brother In Law – Dr. Vivek Patel is associated with the company as Senior Gynaecologist / HOD and Senior Orthopedic Surgeon / HOD respectively.

Shareholding Pattern

The company is almost entirely promoter owned with 99.1% shareholding among Pragnesh, Bhartiben and parents - Yashwantsingh & Anitaben Bharpoda. The remaining 0.9% is owned by Pragnesh’s Brother in law - Dr. Vivek Patel.
It has raised no external funding from investors.

Financials

(Audited restated consolidated financials)