Park Medi World Ltd IPO
Healthcare
Price Band
₹154 – ₹162
Lot Size
92
Minimum Bid Quantity
92
Minimum Investment
₹14904
Issue Size
₹920Cr
Opens
2025-12-10
Closes
2025-12-12
Listing
17-12-2025
Subscription Status
Qualified Institutional Buyers
11.48 x
Non-Institutional Investor
15.07 x
Retail Individual Investor
2.98 x
Total
8 x
IPO Details
Issue Type
BB
Face Value
₹2
Tick Size
1
ISIN
INE119201023
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
The company operates a network of private hospitals in North India with a total bed capacity of 3,000 beds as of September 30, 2024. It is reported to be the largest private hospital chain in Haryana by bed capacity, with 1,600 beds located throughout the state. The network consists of 13 hospitals under the “Park” brand, all of which are National Accreditation Board for Hospitals & Healthcare Providers (NABH) accredited, and seven are also National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited. These hospitals are located in Haryana, New Delhi, Punjab, and Rajasthan. The company offers more than 30 medical specialities and super-specialities, including internal medicine, neurology, urology, gastroenterology, general surgery, orthopaedics, and oncology. As of September 30, 2024, the workforce included 891 doctors and 1,912 nurses. The hospital network was initially developed through new establishments beginning in 2005 and has subsequently expanded through acquisitions in multiple locations. Use of proceeds: The IPO consists of both a fresh issue of shares and an offer for sale (OFS). Proceeds from the OFS will go to the respective selling shareholders, whereas the net proceeds from the fresh issue will be utilised for the following purposes: Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company and certain of the subsidiaries — Rs 410 crore Funding capital expenditure for the development of a new hospital and expansion of the existing hospital by certain subsidiaries, Park Medicity (NCR) and Blue Heavens, respectively — Rs 110 crore Funding capital expenditure for the purchase of medical equipment by the company and certain subsidiaries, Blue Heavens and Ratangiri — Rs 77.19 crore Unidentified inorganic acquisitions and general corporate purposes
Pros
- • The company claims to be the second-largest private hospital chain in North India with a total capacity of 3,000 beds as of September 30, 2024. It also claims to be the largest private hospital chain in Haryana, with 1,600 beds spread across eight hospitals in the state. This scale allows the company to operate a sizeable network of NABH-accredited multi-speciality hospitals across four states.
- • The company has followed a cluster-based expansion approach by setting up hospitals in regions adjacent to its existing facilities. This strategy claims to enable resource sharing, operational efficiencies, and economies of scale. The approach has been used for both organic expansion and acquisition-driven growth.
- • The company claims to have successfully acquired and integrated seven hospitals, adding 1,650 beds across North India. These acquired hospitals contributed 54.24% to revenue from operations in the period ended September 30, 2024, 54.52% in FY24, 55.47% in FY23, and 53.58% in FY22. The company claims these hospitals to be quality assets with high turnaround potential.
Cons
- • The company is highly dependent on doctors, nurses, medical professionals, and support staff to operate its hospitals. As of September 30, 2024, it employed 891 doctors with an attrition rate of 44.77 percent, 1,912 nurses (30.38%), 671 medical professionals (32.08%), and 1,761 support staff (22.28%). Persistently high attrition would require higher replacement costs, disrupt continuity of care, and affect operational efficiency.
- • A substantial portion of revenue is concentrated in hospitals located in Haryana. Revenue from this state amounted to Rs 516.00 crore (74.62 percent) in the period ended September 30, 2024, Rs 946.98 crore (76.92 percent) in FY24, Rs 1,052.75 crore (83.91%) in FY23, and Rs 921.51 crore (84.98%) in FY22. Any operational disruptions, regulatory changes, or regional competition in Haryana may materially impact financial performance due to the limited diversification of revenue sources.
- • The business incurs high expenditure on materials, employee benefits, and professional fees. These costs totalled Rs 372.77 crore (66.57%) of total expenses in the period ended September 30, 2024, Rs 635.08 crore (60.97%) in FY24, Rs 547.17 crore (57.27%) in FY23, and Rs 412.22 crore (50.54%) in FY22. If these rising costs cannot be passed on through pricing adjustments, profitability and margins may be adversely impacted.
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