Park Medi World Pvt Ltd, a New Delhi-headquartered multi-speciality hospital chain, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 1,260 crore through an initial public offering (IPO).
The issue will comprise a primary share sale of Rs 960 crore and an offer-for-sale, with promoter Ajit Gupta offloading shares worth Rs 300 crore.
According to the DRHP, the healthcare group may also raise up to Rs 192 crore in a pre-IPO round. If this amount is raised, it will be deducted from the fresh issue component, the filing stated.
The company plans to use Rs 410 crore of the net fresh issue proceeds to repay debt, which stood at Rs 593.6 crore as of December 2024. It will allocate Rs 110 crore for the development of a new hospital and expansion of existing facilities, and Rs 77.2 crore for the purchase of medical equipment.The remainder will be used for inorganic acquisitions and general corporate purposes.
This move comes just under two months after VCCircle first reported that Park Medi World was considering an IPO to raise Rs 1,200-1,500 crore ($138-172 million).
Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services have been appointed to handle the public issue.
Founded in 1982, the hospital chain operates 12 hospitals across North India under the Park Hospitals brand. It specializes in super-speciality and tertiary care, offering services in pediatrics, critical care, internal medicine, gastroenterology, dental care, cardiology, nephrology, urology, and neurosciences, among others.
Park Medi World’s consolidated revenue from operations dropped to Rs 1,231 crore for the year ended March 2024 from Rs 1,254 crore in the previous year, as per the DRHP. Its consolidated net profit also slipped to Rs 152 crore from Rs 228 crore during the same period.
The decline in profit is primarily attributed to higher lab expenses, impairment of trade receivables, and reduced inpatient revenue during the year, according to credit rating firm Care Edge.
Founded by Ajit Gupta, who serves as chairman, Park Hospitals started with a 50-bed hospital. It now operates more than 3,000 beds across hospitals in Delhi, Gurugram, Faridabad, Sonipat, Panipat, Karnal, Ambala, Behror, and Jaipur. The company is also in the process of opening new hospitals in Patiala, Panchkula, and Rohtak.
