Park Medi World
IPO Size: Rs. 920 cr
- Fresh Issue of Rs. 770 cr (i) to repay Rs. 380 cr, of Rs. 470 cr net debt (ii) Rs. 88 cr capex for a new hospital and equipment
- Offer for Sale (OFS) of Rs. 150 cr by the promoter (96% to shrink to 83% post IPO)
Price band: Rs. 154-162 per share
- Rs. 225 cr pre-IPO secondary by promoter at Rs. 162 per share in Oct-Nov 2025
M cap: Rs. 6,997 cr, implying 13% dilution
IPO Date: Wed 10th Dec to Fri 12th Dec 2025, Listing Wed 17th Dec 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Haryana’s Largest Private Hospital Chain
Park Medi World is a 20 year old hospital chain established by Dr. Ajit Gupta, operating 14 ‘Park Hospitals’ in Haryana, Punjab, Delhi NCR, Rajasthan, Uttar Pradesh, aggregating to 3,250 bed capacity. Of these, 3,050 beds are operational with 68% occupancy. Half of the beds were added via acquisitions, some under distress, resulting in low capex per bed of Rs. 34 lakh, lower than North Indian peer Yathartha’s Rs. 48 lakh too. It plans to add 6 hospitals till Mar 2028, with projected capacity of 4,900 beds after 28 months, of which 600 beds to be added by Apr 2026.
Weak Fundamentals
Between FY22 to FY25, company’s bed capacity increased at 10% CAGR, but revenue rose at only 9% CAGR. Average revenue per operating bed (ARPOB) increased by mere 2.4% CAGR between FY22 to H1FY26, which not only lags peers’ 20-25% growth rate during the same period, but is even lower than India’s double-digit medical inflation. Another metric, Average Length of Stay (ALOS) is 6+ days, is also 2x of peers’ 3-4 days. Since capex is also on the lower side, the negative impact is minimized, with EBITDA margin of 27%.
Poor Growth but Healthy Margins
Company clocks 70% of FY25’s Rs. 1,400 cr revenue from Haryana. H1FY26 revenue rose 17% YoY to Rs. 809 cr, with EBITDA, excluding other income at Rs. 217 cr, leading to 27% EBITDA margin. As most hospitals are owned assets, lower rental leads to PAT of Rs. 139 cr, with an EPS of Rs. 3.6 for H1FY26.
Priced Attractively
M cap of Rs. 7,000 cr and Enterprise value (EV) of Rs. 6,997 cr leads to a PE multiple of 25x, on current year basis and an EV/bed of Rs.2.2 cr. This is seen attractive for 23% RoE and 17% net margin. It is also lower than closest comparable peer Yathartha, operating 2,305 beds, mainly in North India, with ARPOB of Rs. 32,200, 15% net margin and ruling at a PE of 40x, EV/bed of Rs. 2.8 cr. Company is not compared to other hospital chains,s as most operate on higher ARPOB or are metro and tier 1 focused, where cost structures differ.
In Jan 2025, promoter did secondary sale to BRLM Intensive, at Rs. 188.6 per share, while IPO price is 14% lower.
12th Dec 2025 at 07:57 am