NephroPlus plans to go public via IPO; acquire 7 companies & expand

NephroPlus is a dialysis care provider based in Hyderabad, Telangana. Started by Vikram Vuppala and Kamal D Shah in 2009, the company runs 308 dialysis centres across India, Nepal, Uzbekistan, and the Philippines.

Earlier this month, NephroPlus signed a Rs 69.5 Crores financing package with Asian Development Bank (ADB) for building four large dialysis centers in Uzbekistan. The transaction comprises a loan of up to Rs 41.7 Crores from ADB’s capital resources and administration and Rs. 27.8 Crores from Leading Asia’s Private Infrastructure Fund (LEAP). This transaction is an attempt to build a stronger relationship with the Ministry of Health of Uzbekistan.

NephroPlus plans to use these funds to design, build, operate and maintain the dialysis centers in Tashkent city, the Republic of Karakalpakstan, and the Khorezm region. Currently, according to the plans, there will be a capacity of 160 machines in the Tashkent centre.

Acquisitions and the IPO Dream

Additionally, within this FY, NephroPlus aims to raise Rs. 1000 cr via IPO. The issue will comprise both primary and secondary components. Previously, at the end of 2021, they raised Rs. 180 crores in a Series E round led by IIFL AMC. India has 294 dialysis centres in over 179 cities and 308 across India, Nepal, Uzbekistan, and the Philippines. Apart from the plans to list, NephroPlus is discussing acquiring 6-7 mid-sized companies, primarily in India and the Philippines. In an interview with the VCCircle, CEO & co-founder, Vikram Vuppala expressed the need to focus on organic and inorganic growth to maintain the company’s growth rate. He also stressed on the need to remain bullish on the potential of organic growth in India, Nepal, Uzbekistan, and the Philippines.

Speaking on the upcoming acquisitions, Vuppala couldn’t disclose any names of the target firms due to confidentiality clauses. However, he disclosed that they are evaluating opportunities in India and overseas, and depending on the quality, geography, and price of the asset, they will determine whether to acquire it. According to sources of VCCircle, Apollo Dialysis and 7Med are among the target firms for potential acquisition.

In 2020, the company acquired Royal Care Dialysis to enter the Philippines market, marking its first overseas acquisition. Previously in 2018, they acquired DaVita Care India Pvt. Ltd. Vuppala remarks that NephroPlus is very selective and diligent in its acquisitions and their performance indicates the same. Alluding that the funds raised in the last round remain unutilized, Vuppala observes that they will be used for future expansion plans. Competing with the likes of DCDC Health Services; RAHI Care, and Apex Kidney Care, NephroPlus aims to expand by aligning its synergies with the acquired companies.

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