Park Hospital IPO Opens Dec 10: Rs 920 Cr Dream Launch! Will You Invest?

Park Medi World, the operator of the well-known Park Hospital chain across North India, is set to launch its Initial Public Offering (IPO) on December 10, aiming to raise approximately Rs 920 crore. The public issue will be open for subscription until December 12, with the company aiming for a market valuation of nearly Rs 7,000 crore.

IPO Details

• The company has fixed a price band for its shares at Rs 154 to Rs 162 per equity share.
• Investors can place bids for a minimum of 92 equity shares and in multiples of 92 thereafter.
• An anchor book, a special pre-IPO bidding session for large institutional investors, will open on December 9.
• The finalisation of share allotment is expected by December 15, with the company slated to make its stock market debut on December 17.
• Initially, Park Medi World had planned a larger IPO worth Rs 1,260 crore, which included a fresh issue of Rs 960 crore and an offer-for-sale of Rs 300 crore. This has been revised downwards.

Funding and Expansion Plans

• Out of the total Rs 920 crore, Park Medi World aims to raise Rs 770 crore through the issuance of new shares.
• Promoters, led by Dr. Ajit Gupta, will divest shares worth Rs 150 crore via an Offer-For-Sale (OFS).
• A significant portion of the fresh proceeds, Rs 380 crore, is earmarked for the repayment of existing borrowings. As of October, the company had consolidated borrowings totaling Rs 624.3 crore.
• An additional Rs 60.5 crore will be invested in developing a new hospital by its subsidiary, Park Medicity (NCR).
• Rs 27.4 crore is allocated for purchasing new medical equipment for the company and its subsidiaries, Blue Heavens and Ratangiri.
• The remaining funds will be utilized for general corporate purposes.

Company Overview and Financial Performance

• Park Medi World operates a network of 14 NABH accredited multi-super specialty hospitals across North India, including 8 in Haryana, 1 in New Delhi, 3 in Punjab, and 2 in Rajasthan. The company claims to be the second-largest private hospital chain in North India with a capacity of 3,000 beds.
• It offers over 30 super specialty and specialty services.
• For the six months ending September 2025, the company reported a profit of Rs 139.1 crore, a 23.3% increase from Rs 112.9 crore in the same period the previous fiscal.
• Revenue for the period grew by 17% to Rs 808.7 crore, up from Rs 691.5 crore in the prior year.
• Promoters currently hold a substantial 95.55% stake in the company.

Market Context

• The IPO is being managed by merchant bankers including Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services.

Impact

• This IPO launch offers retail investors an opportunity to invest in the growing healthcare sector in North India. Successful fundraising and efficient utilization of proceeds could lead to expansion and improved financial performance for Park Medi World, potentially benefiting shareholders. The healthcare sector often sees steady demand, making such IPOs attractive. However, risks associated with hospital operations, regulatory changes, and competition exist.
• Impact Rating: 7/10

Difficult Terms Explained

• Initial Public Offering (IPO): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company.
• Offer-For-Sale (OFS): A provision where existing shareholders sell their shares to new investors. The funds from an OFS go to the selling shareholders, not the company.
• Anchor Book: A private placement of shares to select institutional investors before the IPO opens for subscription. It helps in building confidence among other investors.
• NABH Accredited: Stands for National Accreditation Board for Hospitals & Healthcare Providers. Accreditation signifies adherence to quality standards in healthcare services.
• Consolidated Basis: Financial statements that combine the financial information of a parent company and its subsidiaries into a single report.
• Merchant Bankers: Financial institutions that help companies raise capital by underwriting and distributing their securities (like IPOs) in the primary market.