Paras Healthcare
IPO Size: Rs. 1,450 cr
- Fresh Issue of Rs. 500 cr (6.7% dilution) to repay Rs. 375 cr of Rs. 934 cr gross debt as of 31.8.26
- Offer for Sale (OFS) of Rs. 950 cr; 68% of OFS by PE investor (16% to drop to 7%) and 32% by promoter (73% stake to shrink to 64% post IPO)
Price band: Rs. 660-693 per share
- In April 2025, company raised Rs. 80 cr at Rs 237 per share. In 1.5 years, asking price has nearly tripled
M cap: Rs. 7,499 cr (IPO is 19% of m cap)
IPO Date: Wed 21st Oct to Fri 23rd Oct 2026, Listing Wed 28th Oct 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
North and East Indian Hospital Chain
Paras Healthcare is a 20-yar-old Gurugram headquartered hospital chain promoted by Dr. Dharminder Kumar Nagar, having a total of 2,211 beds of which 1,502 beds are operational across 8 ‘Paras Heath’ hospitals in Gurugram, Panchkula, Patna, Udaipur, Ranchi, Srinagar, Kanpur and Darbhanga. Company plans 36% capacity increase over next 17 months, as it plans to add 800 beds (300 in Gurugram, 500 in Ludhiana), to increase total capacity to 3,011 beds by Mar 2028.
Business Matrix
Company’s average revenue per operating bed (ARPOB) is Rs. 47,400, reflecting the specialty nature of services, despite majority presence in tier 2 cities.
16% of operational beds (235 beds at Gurugram hospital) contribute to 32% of company’s revenue. As other hospitals mature, revenue mix of Gurugram hospital has been reducing, from 38% in FY24 to 30% in Q1FY27.
Bed occupancy at the 2 hospitals, the 168 operational bed at Srinagar and 135 operational bed at Kanpur which were started in the past 2 years, is still at 59% in Q1FY27, which can be scaled further. However, ARPOB will be diluted, as these hospitals operate on an average 20% lower ARPOB, due to their location.
Profitable Just Before the IPO
Company reported topline of Rs. 1,1,29 cr in FY24, with 12% EBITDA margin and a negative bottomline, on 52% bed occupancy and Rs. 44,300 ARPOB. In FY26, topline stood at Rs. 1,606 cr, as occupancy rose to 62% with ARPOB of Rs. 47,400, leading to an EBITDA margin of 19.5% and a PAT of Rs. 44 cr.
For Q1FY27, occupancy strengthened to 70% with ARPOB of 49,400 resulting in a topline of Rs. 470 cr, with EBITDA margin strengthening to 22% and PBT of Rs. 48 cr. Q1FY27 PAT was Rs. 50 cr, partly aided by deferred tax credit. Hence cannot be annualised.
Balance Sheet Scrutiny
Company’s debt has been rising nearly Rs. 890 cr, from Rs. 750 cr as of 31.3.26 and from Rs. 540 cr about 2.25 years ago. It will stay over Rs. 500 post IPO, leading to a net debt to EBITDA of 0.6x post listing.
Even debtors have jumped 33% in past three months to Rs. 448 cr as of 30.6.26, from Rs. 350 cr as of 31.3.26, and from Rs. 267 cr a year ago.
