Description

Board approval for allocation of 5,657,919 equity shares to 14 anchor investors at ₹460 per share, raising ₹260.26 crore for Nephrocare Health Services Limited's IPO.

Summary

Nephrocare Health Services Limited’s board of directors approved the allocation of 5,657,919 equity shares to 14 anchor investors at an allocation price of ₹460 per share (face value ₹2, premium ₹458) on December 9, 2025. The total amount raised from anchor investors is ₹260.26 crore. The allocation includes significant participation from domestic mutual funds (45.65% of anchor portion through 6 schemes from 5 mutual funds) and institutional investors.

Key Points

  • Total anchor allocation: 5,657,919 equity shares at ₹460 per share
  • Total funds raised from anchors: ₹2,602,642,740 (₹260.26 crore)
  • Face value: ₹2 per share, Share premium: ₹458 per share
  • 14 anchor investors participated in the allocation
  • Domestic mutual funds received 2,582,944 shares (45.65% of anchor portion)
  • Life insurance companies and pension funds received 434,815 shares (7.69% of anchor portion)
  • Book Running Lead Managers: ICICI Securities Limited, Ambit Private Limited, IIFL Capital Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited

Anchor Investor Details

Top Allocations:

  • SBI Healthcare Opportunities Fund: 760,896 shares (13.45%) - ₹35.00 crore
  • DSP Healthcare Fund: 619,584 shares (10.95%) - ₹28.50 crore
  • ICICI Prudential Pharma Healthcare and Diagnostics Fund: 543,488 shares (9.61%) - ₹25.00 crore
  • Fidelity Funds - Pacific Fund: 492,288 shares (8.70%) - ₹22.65 crore

Mutual Fund Participation:

  • 5 domestic mutual funds participated through 6 schemes
  • Total allocation to mutual funds: 2,582,944 shares for ₹118.82 crore
  • Healthcare-focused funds showed strong interest (SBI Healthcare, ICICI Prudential Pharma Healthcare, DSP Healthcare)

Other Institutional Investors:

  • Foreign funds: Fidelity, NEF, Eastspring Investments, Polar Capital, Manulife
  • Insurance companies: SBI Life, HDFC Life
  • Prudential Assurance Company Limited

Regulatory Changes

No regulatory changes announced. This is a standard anchor investor allocation disclosure as per SEBI IPO guidelines.

Compliance Requirements

  • Anchor investor allocation finalized in consultation with Book Running Lead Managers
  • Allocation disclosed to stock exchanges (BSE and NSE) as required
  • Minimum 45.65% allocation to domestic mutual funds meets regulatory requirements for anchor portion
  • Insurance company allocation at 7.69% within prescribed limits

Important Dates

  • December 9, 2025: Board meeting date and anchor investor allocation date
  • IPO opening and closing dates not specified in this circular
  • Lock-in period for anchor investors as per SEBI regulations (typically 30-90 days depending on listing gains)

Impact Assessment

Market Impact:

  • Strong institutional interest signals confidence in Nephrocare’s business model and healthcare sector prospects
  • Anchor book oversubscription likely, given quality of investors
  • Healthcare sector focus evident from participation of specialized healthcare funds

Company Impact:

  • Successful anchor allocation is positive indicator for main IPO subscription
  • Quality anchor investors (SBI MF, ICICI Prudential, DSP, Fidelity) add credibility
  • Price discovery at ₹460 per share provides benchmark for retail/institutional bidding

Investor Considerations:

  • Anchor allocation represents institutional validation of valuation
  • Healthcare services sector exposure through nephrology/dialysis services
  • Retail investors should review final prospectus and price band for main IPO

Impact Justification

Anchor investor allocation is a key milestone in IPO process, indicating institutional interest. Total allocation of ₹260.26 crore demonstrates strong demand from quality investors including mutual funds and insurance companies.