North India’s prominent hospital chain ‘Park Hospitals’ parent company Park Medi World has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) on March 28, 2025 to launch its initial public offering (IPO).
According to the DRHP, the hospital chain operator aims to raise a total of Rs 1,260 crore through the public issue that comprises of a fresh issuance of equity shares worth Rs 960 crore and an offer for sale (OFS) worth Rs 300 crore. Dr. Ajit Gupta, the promoter, will sell shares worth Rs 300 crore through the IPO . The company may consider a pre-IPO placement of up to Rs 192 crore. If the pre-IPO placement is executed, the amount will be reduced from the fresh issue size.
Nuvama Wealth Management, CLSA India, DAM Capital Advisors and Intensive Fiscal Services are the book running lead managers for the IPO whereas Kfin Technologies is the registrar to the issue.
The Park Medi World group operates 13 NABH accredited hospitals in North India with a capacity of 3,000 beds including 805 ICU Beds and 63 operation theatres, and a dedicated team of 850+ doctors across 30 specialities. The Park hospitals chain is currently the second largest hospital chain in North India. The company’s plans to add 1,350 beds will make it the country’s seventh largest hospital chain.
Of the total capital raised, the company plans to use Rs 410 crore for repayment or prepayment of its outstanding loans and Rs 110 crore to fund capital expenditure for development of new hospital and expansion of existing hospital by its subsidiaries Park Medicity (NCR) and Blue Heavens respectively. Another Rs 77 crore will go to fund capital expenditure for purchase of medical equipment by company’s subsidiaries Blue Heavens and Ratnagiri.
The company will also put a portion of the funds toward inorganic acquisitions and general corporate purposes not yet identified, the amount for which shall not exceed 35% and 25% of the gross proceeds respectively.
According to the draft papers, the company posted a total income of Rs 707.45 crore in the six months ended September 2024 with a restated profit of Rs 112.7 crore during the same period. The total income in FY24 was reported as Rs 1,263 crore, slightly down from Rs 1,272 crore in FY23. The restated profit too declined to Rs 153 crore in FY24 from Rs 228 crore in FY23.
Notably, the company has a total borrowing of Rs 648.9 crore including that of its subsidiaries, and as mentioned above, Rs 410 crore has been earmarked toward this debt repayment/prepayment from the net proceeds of the IPO.
The company was initially planning an IPO in 2023 to raise around Rs 800 crore primarily for debt repayment and expansion.