It contains fresh issues as well as offer-for-sale(OFS). In fresh issues, it includes shares worth up to ₹400 crore, and in OFS it includes 14,974,010 equity shares by existing shareholders. The face value of every equity share is ₹1.
In OFS promoter and investor both are planning to sell their shares. Promoter Dr. Dharminder Kumar Nagar is selling 2,928,320 equity shares and investor Commelina Ltd. is selling up to 12,045,690 equity shares with the face value of ₹1.
The book-running lead managers of this IPO are IIFL Securities Limited, ICICI Securities Limited, and Motilal Oswal Investment Advisors Limited.
The company is going to prepay or repay a portion of its remaining borrowings on schedule using the net proceeds from the IPO. Additionally, the proceeds will either be used as debt or as equity for its subsidiaries, Plus Medicare Hospitals Private Limited, and Paras Healthcare (Ranchi) Private Limited. This investment is also used for general corporate purposes.
The organization has 2,135 beds overall until March 31, 2024. It has added 885 more beds during the previous two financial years. It operates eight hospitals under the “Paras Health” brand. These hospitals are spread across five states (Haryana, Bihar, Uttar Pradesh, Rajasthan, and Jharkhand) and one union territory (Jammu and Kashmir) in North India, as per DRHP.
The Kanpur Hospital is the largest hospital with 435 beds in terms of bed size. In FY24, the company recorded an increase in average revenue per occupied bed (ARPOB) to ₹44,345.37 million.
In order to maintain a balance between high-quality healthcare services and affordability, Paras Healthcare concentrates on offering specialized tertiary medical care in Tier 2 and Tier 3 cities. Through its hospitals, the company provides a variety of clinical specialties, such as neurology, orthopedics, oncology, gastrosciences, joint replacement, and cardiac sciences.
Paras Healthcare is growing with the opening of new hospitals in Gurugram and Ludhiana. The Gurugram facility will be established through an extended lease arrangement and will have 300 beds when it opens in FY2027. With an occupancy of up to 500 beds, the first hospital in Ludhiana is also planned to open in FY 2028.
According to expansion plans, Paras Healthcare is anticipated to increase its bed capacity from 2,135 on 31st March 2024 to 2,935 on 31st March 2029.
The company has also purchased land in Panchkula next to its current hospital to build a new hospital with a 250-bed. With shared staff and physicians, it is anticipated that the new hospital will gain from synergies with the current hospital.
Along with these expansion plans, the company is seeking inorganic growth opportunities. As per the DRHP report, Paras Healthcare may consider mergers and acquisitions to strengthen its market presence, broaden its capabilities and expertise, and improve operational efficiency.
