Paras Healthcare Ltd, the operator of the Paras Health hospital network, is set to enter the primary market with a ₹1,450-crore initial public offering (IPO) on October 21. The company has fixed the price band at ₹660–693 per equity share, with subscriptions closing on October 23.
The bidding window for anchor investors will open on October 19. The company has scaled down the proposed issue from its earlier plan to raise ₹1,800 crore.
The IPO consists of a fresh share issue worth ₹500 crore and an Offer for Sale (OFS) amounting to ₹950 crore. Under the OFS, promoter Dharminder Kumar Nagar and investor Commelina Ltd will sell part of their holdings. Proceeds from the fresh issue will be used to repay the company’s debt.
Headquartered in Gurugram, Paras Healthcare operates eight hospitals under the Paras Health brand. Its facilities span five states and one Union Territory, serving patients in Gurugram and Panchkula in Haryana, Patna and Darbhanga in Bihar, Kanpur in Uttar Pradesh, Udaipur in Rajasthan, Ranchi in Jharkhand, and Srinagar in Jammu and Kashmir.
Under the IPO allocation structure, qualified institutional buyers (QIBs) will receive 75% of the net offer, while non-institutional investors (NIIs) will be allocated 15%. Retail individual investors will have access to the remaining 10%.
The company’s shares are expected to be listed on the stock exchanges on October 28. JM Financial, BofA Securities India and Nuvama Wealth Management have been appointed as the book-running lead managers, while MUFG Intime India will serve as the registrar for the issue.
The IPO marks an important capital-market milestone for Paras Healthcare as it seeks to reduce its debt and strengthen its financial position. Investor participation and market conditions will be key factors to watch when the issue opens.
(Photo courtesy: parashospitals.com)