Park Hospital IPO Alert! Rs 920 Cr Healthcare Giant Opens Dec 10 – Don't Miss This Wealth Opportunity!

Park Medi World, the prominent operator of the Park Hospital chain across North India, is set to launch its Initial Public Offering (IPO) next week, marking a significant opportunity for investors in the healthcare sector.

IPO Launch Details

• The Initial Public Offering (IPO) of Park Medi World will open for subscription on December 10 and close on December 12.
• The anchor book, which allows institutional investors to subscribe before the retail segment, will open on December 9.
• The total issue size is ₹920 crore.

Price Band and Lot Size

• The company has fixed the price band for the IPO at ₹154 to ₹162 per share.
• Each share has a face value of ₹2.
• Retail investors can apply for a minimum of one lot, comprising 92 shares, costing ₹14,904 at the upper price band. Subsequent applications must be in multiples of 92 shares.
• For small High Net-worth Individuals (HNIs), the minimum bid is 1,288 shares (₹2,08,656), and for large HNIs, it is 6,256 shares (₹10 lakh).

Fundraising and Use of Proceeds

• The total fundraising will comprise a fresh issue of shares worth ₹770 crore and an offer-for-sale (OFS) of ₹150 crore by promoter Dr. Ajit Gupta.
• The IPO size was revised downwards from an earlier draft proposal of ₹1,260 crore.
• Proceeds from the fresh issue will be primarily allocated to debt repayment (₹380 crore), considering consolidated borrowings of ₹624.3 crore as of October 2025.
• Further funds will support the development of a new hospital (₹60.5 crore) and the purchase of medical equipment (₹27.4 crore) for the company and its subsidiaries.
• The remaining balance will be used for general corporate purposes.

Park Medi World: Operations and Reach

• Park Medi World operates 14 NABH-accredited multi-super specialty hospitals under the well-known Park brand.
• These hospitals are strategically located across North India, with eight in Haryana, one in Delhi, three in Punjab, and two in Rajasthan.
• The hospital chain provides a comprehensive range of over 30 super-specialty and specialty services.

Financial Highlights

• For the six months ended September 2025, Park Medi World reported a profit of ₹139.1 crore, marking a 23.3% increase from the previous year.
• Revenue for the same period rose by 17% to ₹808.7 crore, compared to ₹691.5 crore in the prior year.

Investor Allocation

• The IPO reserves 35% of the offer size for retail investors.
• Qualified Institutional Buyers (QIBs) are allocated 50%.
• Non-Institutional Investors (NIIs) will receive 15%.

Market Capitalization Projection

• At the upper end of the price band, Park Medi World is anticipated to list with a market capitalization of approximately ₹6,997.28 crore.

Lead Managers

• The merchant bankers managing the issue are Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services.

Impact

• This IPO presents a significant investment opportunity in India's growing healthcare sector, potentially boosting the stock market's healthcare segment.
• The successful fundraising will enable Park Medi World to strengthen its financial position by reducing debt and expanding its infrastructure, which could lead to future growth and profitability.
• For investors, it offers a chance to gain exposure to a well-established hospital chain with a proven track record.
• Impact Rating: 8/10

Difficult Terms Explained

• Initial Public Offering (IPO): The process by which a private company offers its shares to the public for the first time.
• Anchor Book: A pre-IPO allotment of shares to a select group of institutional investors to build confidence in the issue.
• Price Band: The range within which the IPO shares are offered for subscription.
• Retail Investors: Individual investors who apply for shares worth up to ₹2 lakh.
• Qualified Institutional Buyers (QIBs): Large institutional investors like mutual funds, foreign institutional investors, and banks.
• Non-Institutional Investors (NIIs): High Net-worth Individuals (HNIs) and other investors who apply for shares above the retail limit.
• Offer-for-Sale (OFS): When existing shareholders sell their stake in the company to new investors.
• NABH-accredited: Certified by the National Accreditation Board for Hospitals & Healthcare Providers, indicating adherence to quality standards.
• Consolidated Borrowings: The total debt of a company and all its subsidiaries combined.
• Super-specialty services: Highly specialized medical services focusing on specific diseases or organ systems.