PARK MEDI WORLD LIMITED IPO Explain

Park Medi World IPO Overview

Delhi NCR/Haryana-based hospital chain raising ₹920 cr (₹770 cr fresh + ₹150 cr OFS). Price: ₹154-162. Lot: 92 shares (₹14,904 min).

Funds for debt repayment (₹380 cr), new hospital at Park Medicity NCR (₹60.5 cr), medical equipment (₹27.4 cr).

Lead: Dam Capital, CLSA, Nuvama.

Second-largest private hospital chain in North India, largest in Haryana.

14 multi-super specialty NABH-accredited hospitals: 8 Haryana, 1 Delhi, 3 Punjab, 2 Rajasthan. 3,250 beds (expanding to 4,900 by Mar 2028). 1,014 doctors, 2,142 nurses, 870 ICU beds, 67 operating theaters. Competes with Apollo, Fortis, Max Healthcare, Medanta, Narayana Health.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	Mainboard (100th mainboard IPO of 2025)
IPO Open Date	10 December 2025 (Tuesday)
IPO Close Date	12 December 2025 (Thursday)
Anchor Investor Bidding	09 December 2025 (Monday) – Completed
Allotment Date	15 December 2025 (Sunday) – Expected
Credit to Demat	16 December 2025 (Monday) – Expected
Refund Initiation	16 December 2025 (Monday) – Expected
Listing Date	17 December 2025 (Tuesday) – Tentative
Price Band	₹154 – ₹162 per share
Face Value	₹2 per share
Lot Size	92 shares (minimum lot)
Min Investment (Retail)	₹14,904 (92 shares at upper band ₹162)
sNII Investment	₹2,08,656 (14 lots / 1,288 shares) minimum
bNII Investment	₹10,13,472 (68 lots / 6,256 shares) minimum
Issue Size	₹920 crore total (reduced from earlier ₹1,260 cr proposal)
Fresh Issue	₹770 crore (83.7%) – 47,53,086 shares
Offer for Sale (OFS)	₹150 crore (16.3%) – 92,59,259 shares by promoter Dr. Ajit Gupta
Total Shares Offered	5,67,90,123 equity shares
Listing	BSE & NSE (Mainboard)
Post-Issue Market Cap	₹6,997.28 crore (at upper price band ₹162)
Grey Market Premium (GMP)	₹30-33 (19-20% expected listing gain as of Dec 8, 2025)

Issue Break-up

Category	Allocation
QIB (Qualified Institutional Buyers)	50% of Net Offer
NII (Non-Institutional Investors)	15% of Net Offer
Retail Individual Investors	35% of Net Offer

Selling Shareholders (OFS ₹150 crore)

Promoter Selling 92,59,259 shares:

• Dr. Ajit Gupta – Chairman & Promoter (partial exit)

Pre-IPO Institutional Investors (4.45% held by):

• Abakkus Asset Manager
• Carnelian
• SBI General Insurance
• Sattva Developers
• Urudavan Investment (acquired 3.6% stake between Oct-Nov 2025 in pre-IPO)

Note: Promoters hold 95.55% pre-IPO; OFS represents 16.3% of issue (modest promoter exit for liquidity after 14 years).

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹770 crore) will be used for:

1. Repayment/Prepayment of Certain Borrowings – ₹380 crore (49.4%)
   • Repayment of bank loans and financial institution borrowings
   • As of October 2025: Consolidated borrowings of ₹624.3 crore
   • Significant debt reduction to improve financial health
   • Reduction of interest burden on P&L
   • Strengthening debt-equity ratio and credit profile
2. Funding Capital Expenditure for New Hospital under Park Medicity (NCR) – ₹60.5 crore (7.9%)
   • Construction and setup of new hospital facility in NCR region
   • Part of expansion strategy to reach 4,900 beds by March 2028
   • Infrastructure, medical equipment, facilities for new unit
3. Funding Purchase of Medical Equipment – ₹27.4 crore (3.6%)
   • Medical equipment for Park Medi World Limited and subsidiaries Blue Heavens and Ratangiri
   • Advanced diagnostic and treatment equipment upgrades
   • Technology infrastructure enhancement across existing hospitals
   • Supporting quality of care and super-specialty service capabilities
4. General Corporate Purposes – ₹302.1 crore (39.2%)
   • Working capital requirements
   • Expansion projects in Ambala, Panchkula, Rohtak, Gorakhpur, New Delhi
   • Marketing and brand building initiatives
   • Technology infrastructure and ERP systems
   • Business development and strategic initiatives
   • Contingency reserves

Strategic Focus:

• Aggressive debt reduction (₹380 cr repayment from ₹624.3 cr total debt)
• Capacity expansion from 3,250 to 4,900 beds by March 2028 (50% increase)
• Infrastructure and equipment upgrades to strengthen super-specialty capabilities
• Geographic expansion across North India (5 new projects underway)

OFS Proceeds (₹150 crore):

• Goes to promoter Dr. Ajit Gupta for partial liquidity after 14 years of operations
• Modest 16.3% OFS indicates promoter confidence retention with majority stake

Lead Managers & Registrar

Book Running Lead Managers (BRLMs):

1. Dam Capital Advisors Limited
2. Intensive Fiscal Services Private Limited (IIFL Capital)
3. CLSA India Private Limited
4. Nuvama Wealth Management Limited

Registrar:

• Kfin Technologies Limited
  • Address: Selenium Tower-B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500032, Telangana
  • Phone: +91-40-6716 2222, +91-40-7961 1000
  • Email: [email protected]
  • Website: www.kfintech.com / https://ipostatus.kfintech.com/

Promoters & Management

Key Promoters:

1. Dr. Ajit Gupta – Chairman & Promoter
   • Founder and visionary leader of Park Hospital chain
   • 14+ years of building Park brand from inception in 2011
   • Strategic leadership driving expansion, quality, affordability vision
   • “Wellness for All” philosophy guiding company mission
   • Partial OFS participant (₹150 cr exit for liquidity)
2. Dr. Ankit Gupta – Promoter
   • Second-generation leadership
   • Involved in operations and expansion strategy

Company History:

• Incorporated: 2011 (14 years of operations)
• Vision: Build North India’s leading affordable, quality multi-super specialty hospital chain
• Mission: “Wellness for All” – making advanced healthcare accessible across social strata
• Growth Journey:
  • Started with single hospital
  • Scaled to 14 NABH-accredited hospitals (3,250 beds) across 4 states
  • Became second-largest private hospital chain in North India
  • Largest private hospital chain in Haryana by bed capacity
  • Expansion pipeline: 5 projects underway (Ambala, Panchkula, Rohtak, Gorakhpur, New Delhi) targeting 4,900 beds by March 2028

Company Contact:

• Registered Office: 12, Meera Enclave, Near Keshopur Bus Depot, Outer Ring Road, New Delhi – 110018, India
• Phone: +91 124 696 0000
• Email: [email protected]
• Website: www.parkhospital.in

Certifications & Accreditations:

• NABH (National Accreditation Board for Hospitals & Healthcare Providers): All 14 hospitals accredited
• NABL (National Accreditation Board for Testing and Calibration Laboratories): 8 hospitals accredited
• Quality and safety standards ensuring patient trust

COMPANY OVERVIEW

Establishment & Background:

• Founded: 2011 (14 years of operations)
• Industry: Multi-Super Specialty Private Hospital Chain
• Headquarters: New Delhi (registered office)
• Operations: North India – Haryana, Delhi, Punjab, Rajasthan
• Positioning: Second-largest private hospital chain in North India by bed capacity; largest in Haryana

Business Model:

Hospital Network – 14 Multi-Super Specialty NABH-Accredited Hospitals:

Geographic Footprint:

• 8 Hospitals in Haryana: 1,600 beds (largest private chain in state)
  • Faridabad, Karnal, Ambala, Panipat, Hisar, Sonipat, Rewari, Kaithal
• 1 Hospital in Delhi (NCR): Palam Vihar, Gurgaon
• 3 Hospitals in Punjab: Jalandhar, Ludhiana, Patiala
• 2 Hospitals in Rajasthan: Behror, Alwar

Total Bed Capacity: 3,250 beds (as of September 30, 2025) Expansion Pipeline: 5 new projects in Ambala, Panchkula, Rohtak, Gorakhpur (UP), New Delhi Target Capacity: 4,900 beds by March 2028 (50% increase from current)

Medical Infrastructure & Capabilities:

Clinical Resources:

• 1,014 Doctors: Experienced medical professionals across specialties
• 2,142 Nurses: Skilled nursing staff for patient care
• 870 ICU Beds: Critical care infrastructure (27% of total beds)
• 67 Operating Theatres: Surgical capacity across network
• 2 Dedicated Cancer Units: Oncology Centers of Excellence
• Robotic-Assisted Surgery Systems: iMARS (Integrated Minimally Access Robotic Surgery)
• Trauma Centers: Emergency and accident care facilities
• Oxygen Generation Plants: Self-sufficient oxygen supply infrastructure

Specialties & Super-Specialties (30+ Services):

• Cardiology & Cardiac Surgery: Heart care, interventions, bypass surgery
• Neurology & Neurosurgery: Brain and spine care, neuro-interventions
• Oncology: Medical, surgical, radiation oncology across two dedicated cancer units
• Orthopedics: Joint replacement, trauma, sports medicine
• Urology: Kidney, prostate, urological surgeries
• Gastroenterology & GI Surgery: Digestive system, liver, pancreas care
• Internal Medicine: General medicine, infectious diseases
• Obstetrics & Gynecology: Maternal care, high-risk pregnancies, IVF
• Pediatrics & Neonatology: Child care, NICU facilities
• General Surgery: Laparoscopic, minimally invasive surgeries
• Nephrology & Dialysis: Kidney care, dialysis centers
• Pulmonology & Respiratory Care: Lung diseases, critical care
• Emergency & Trauma: 24/7 emergency services, trauma care
• Additional Specialties: ENT, ophthalmology, dermatology, plastic surgery, psychiatry, endocrinology

Revenue Model:

• Patient admissions (In-Patient Department – IPD)
• Out-patient consultations (Out-Patient Department – OPD)
• Diagnostic services (pathology, radiology, imaging)
• Surgical procedures and interventions
• Package pricing for procedures and treatments
• Insurance and corporate tie-ups (cashless treatments)
• Government schemes (CGHS – Central Government Health Scheme, state health insurance programs)

Value Proposition:

• Quality & Affordability: High-quality tertiary care at accessible price points
• NABH Accreditation: All hospitals meeting national quality standards
• Advanced Technology: Robotic surgery, modern equipment, trauma facilities
• Experienced Clinical Teams: 1,014 doctors, 2,142 nurses delivering patient-centric care
• Comprehensive Services: 30+ specialties under one roof reducing referral needs
• Geographic Accessibility: 14 hospitals across North India bringing care closer to patients

Market Position:

• Second-Largest Private Hospital Chain in North India by Bed Capacity (as of Sep 2025)
• Largest Private Hospital Chain in Haryana with 1,600 beds (8 hospitals) in state
• 3,250 Beds Total (expanding to 4,900 by Mar 2028)
• 14 NABH-Accredited Hospitals: Quality certification providing brand trust
• 8 NABL-Accredited Hospitals: Laboratory quality standards
• Strong Regional Presence: Clustered expansion model in Haryana, Punjab, Rajasthan, Delhi NCR
• Affordable Tertiary Care Positioning: Competing with Apollo, Fortis, Max on quality but priced more accessibly

Operations:

Cluster-Based Expansion Strategy:

• Focus on North India cluster for operational synergies and brand building
• Hub-and-spoke model: Larger hospitals in metros, smaller units in Tier-II/III cities
• Acquisition-led growth: 8 hospitals acquired adding 1,650 beds (as of Sep 2025)
• Greenfield expansion: New hospital projects in pipeline (Ambala, Panchkula, Rohtak, Gorakhpur, New Delhi)

Financial Performance Highlights:

• H1 FY26 (Apr-Sep 2025): ₹808.7 cr revenue (+17% YoY), ₹139.1 cr PAT (+23.3% YoY)
• FY25 (Annualized from H1): ~₹1,617 cr revenue, ~₹278 cr PAT expected
• Revenue Growth: Consistent double-digit growth driven by bed additions, occupancy improvements, case mix optimization
• Profitability: Healthy PAT margins demonstrating operational efficiency

Debt Position:

• Oct 2025 Borrowings: ₹624.3 crore consolidated debt
• IPO Debt Repayment: ₹380 crore (60.9% of total debt)
• Post-IPO Debt: ~₹244 crore remaining – manageable leverage

Expansion Projects (Underway):

1. Ambala, Haryana – New hospital facility
2. Panchkula, Haryana – Multi-super specialty unit
3. Rohtak, Haryana – Hospital expansion
4. Gorakhpur, Uttar Pradesh – Entry into UP market
5. New Delhi – Park Medicity (NCR) – ₹60.5 cr allocated from IPO

Company Strengths

1. Second-Largest Private Hospital Chain in North India – Market Leadership:

• Second-largest private hospital chain in North India by bed capacity (3,250 beds)
• Largest private hospital chain in Haryana with 1,600 beds (8 hospitals) in state
• Strong regional brand recognition and market positioning in North India cluster
• 14 NABH-accredited, multi-super specialty hospitals providing quality validation
• 8 hospitals also NABL-accredited for laboratory standards
• Cluster-based footprint across Haryana (8), Delhi (1), Punjab (3), Rajasthan (2) creating operational synergies
• Market leadership in tier-II/III cities of Haryana where competition limited vs metros

2. Robust Financial Performance – 23% PAT Growth, 17% Revenue Growth (H1 FY26):

• H1 FY26 (Apr-Sep 2025): ₹808.7 crore revenue (+17% YoY from ₹691.5 cr)
• H1 FY26 Profit After Tax: ₹139.1 crore (+23.3% YoY from ₹112.9 cr)
• PAT margin of 17.2% (H1 FY26) – healthy profitability for hospital sector
• Consistent double-digit revenue growth trajectory demonstrating demand strength
• Profitability growth outpacing revenue growth (23% vs 17%) indicating operational leverage
• Strong cash generation capability supporting expansion and debt servicing

3. Aggressive Capacity Expansion – 3,250 to 4,900 Beds by March 2028 (+50%):

• Current bed capacity: 3,250 beds (Sep 2025)
• Target capacity: 4,900 beds by March 2028 – 1,650 bed addition (50% increase)
• 5 expansion projects underway: Ambala, Panchkula, Rohtak, Gorakhpur (UP), New Delhi (Park Medicity NCR)
• Proven acquisition track record: 8 hospitals acquired adding 1,650 beds already
• IPO proceeds of ₹60.5 cr allocated for new Park Medicity (NCR) hospital
• Expansion pipeline provides strong revenue growth visibility for 3-5 years
• Capacity additions in high-demand North India markets with limited competition in tier-II/III cities

4. Advanced Medical Infrastructure – 870 ICU Beds, 67 OTs, Robotic Surgery, Cancer Units:

• 870 ICU Beds: 27% of total beds dedicated to critical care – highest among regional peers
• 67 Operating Theatres: Surgical capacity supporting high-volume procedures and emergencies
• 2 Dedicated Cancer Units: Oncology Centers of Excellence for comprehensive cancer care
• Robotic-Assisted Surgery (iMARS): Minimally invasive robotic systems for precision surgeries
• Trauma Centers: Emergency care facilities across network
• Oxygen Generation Plants: Self-sufficient oxygen infrastructure reducing dependency
• Infrastructure investments position Park as premium provider despite affordable pricing

5. Experienced Clinical Teams – 1,014 Doctors, 2,142 Nurses:

• 1,014 doctors across specialties providing clinical excellence
• 2,142 nurses ensuring quality nursing care and patient experience
• Doctor-to-bed ratio and nurse-to-bed ratio supporting patient outcomes
• Experienced leadership guiding clinical protocols and quality standards
• Continuous medical education and training programs for staff skill upgradation
• Ability to attract and retain talent critical for super-specialty service delivery

6. Affordable Quality Positioning – “Wellness for All” Mission:

• Differentiation: High-quality tertiary care at more accessible price points vs Apollo, Fortis, Max
• Mission: “Wellness for All” philosophy making advanced healthcare affordable across social strata
• Geographic Strategy: Tier-II/III city focus where patients underserved and price-sensitive
• Government Tie-Ups: CGHS (Central Government Health Scheme), state insurance programs – cashless treatments for government employees and poor
• Pricing Power: Affordable positioning attracts volume while maintaining 17%+ PAT margins
• Social Impact: Healthcare accessibility in smaller cities reducing patient migration to metros

7. Strong Grey Market Premium (GMP) & Positive Investor Sentiment:

• GMP ₹30-33 (19-20% expected listing gain as of Dec 8, 2025)
• Positive market sentiment indicating strong retail and institutional demand
• 100th mainboard IPO of 2025 – milestone creating additional investor interest
• Recent pre-IPO investments by institutional investors (Abakkus, Carnelian, SBI General Insurance, Urudavan) at valuations validating business model
• Anchor book expected to be fully subscribed given sector tailwinds and company fundamentals

Key Risks & Challenges

1. High Debt Burden – ₹624.3 Crore Outstanding, Credit Rating Downgrades:

• Consolidated Borrowings (Oct 2025): ₹624.3 crore debt on balance sheet
• IPO Debt Repayment: Only ₹380 crore (60.9% of debt) being repaid; ₹244 crore remains post-IPO
• Interest Burden: High interest costs impacting profitability; reduction of ₹380 cr will help but ₹244 cr debt servicing continues
• Credit Rating Downgrades (Major Red Flag):
  • CARE Ratings: Downgraded long-term facilities from CARE A- (Stable) to CARE BBB+ (Stable) in December 2024, then removed rating in January 2025
  • BRL (Brickwork Ratings): Downgraded fund-based facilities to BWR B+ (Stable) by May 2025, withdrawn in August 2025 after repayment
• Implication: Rating downgrades signal financial stress, higher perceived risk, potential difficulties in future borrowing
• Future Borrowing Costs: Any future expansion may face higher interest rates due to downgrade history
• Debt-to-Equity: High leverage despite IPO proceeds – ongoing financial risk

2. Human Resource Challenges – 33.72% Doctor Attrition Rate:

• Doctor Attrition Rate (Sep 2025): 33.72% – extremely high turnover
• Critical Dependency: Hospital operations highly dependent on doctors, nurses, medical professionals, support staff
• Talent War: High demand and limited availability of skilled medical professionals in India
• Challenges: Attracting and retaining senior doctors difficult given competition from Apollo, Fortis, Max, Medanta offering higher compensation
• Operational Impact: High attrition disrupts patient continuity, brand reputation, clinical outcomes
• Cost Implications: Continuous recruitment, onboarding, training costs; salary inflation to retain talent
• Risk: Loss of key doctors/specialists can lead to patient attrition and revenue decline in specific specialties

3. Acquisition Integration Risks – 8 Hospitals Acquired, Realizing Synergies Uncertain:

• Acquisition Track Record: 8 hospitals acquired adding 1,650 beds (as of Sep 2025)
• Integration Challenges: Fully integrating newly acquired hospitals into Park network uncertain
  • Culture and process standardization across acquired units
  • IT systems, ERP, billing systems integration
  • Clinical protocols and quality standards harmonization
  • Staff retention post-acquisition (doctor and nurse attrition risks)
• Expected Benefits May Not Materialize: Synergies like operational efficiency, cross-referrals, brand leverage may not realize
• Ongoing Expansion: Company intends to continue acquisition-led growth – execution risks multiply
• Capital Allocation: If acquisitions don’t deliver ROI, shareholder value destruction

4. Intense Competition from Larger, Better-Capitalized Chains:

National Hospital Giants (Listed & Pan-India Presence):

• Apollo Hospitals: 7,942+ beds, pan-India network, digital health (Apollo 24/7), ₹6,000+ cr market cap, 40+ years legacy
• Fortis Healthcare: Wide metropolitan and tier-II presence, operational excellence, brownfield expansion focus
• Max Healthcare: Rapid capacity additions, aggressive asset acquisition strategy, North/Central India dominance
• Narayana Health: 5,821+ operational beds across 40 facilities, affordability focus, strong South/East presence
• Medanta (Global Health): 1,600+ beds in Gurugram mega-hospital, premium positioning, Dr. Naresh Trehan brand, expanding NCR, Lucknow, Patna, Noida

Regional Competitors:

• Artemis Hospitals, Paras Hospitals (Gurgaon), Sir Ganga Ram Hospital, Batra Hospital (Delhi trust hospitals)

Competitive Pressures:

• Park’s ₹808.7 cr H1 FY26 revenue vs Apollo’s ₹18,000+ cr annual, Fortis ₹7,000+ cr – 10-25X size gap
• Larger players have massive capital, brand recognition, pan-India networks, technology investments
• Apollo’s digital health (Apollo 24/7), Max’s aggressive M&A, Medanta’s premium positioning create differentiation challenges
• Price competition in tier-II/III cities from local hospitals and emerging chains
• Doctor and nurse talent war with larger chains offering higher compensation

5. Geographic Concentration – North India Dependency:

• 100% Revenue from North India: Haryana (8 hospitals), Delhi (1), Punjab (3), Rajasthan (2)
• Single Region Risk: Economic slowdown, political disruptions, natural disasters, epidemics in North India disproportionately impact
• Haryana Concentration: 8 hospitals (57% of network), 1,600 beds (49% of capacity) in single state
• Limited Geographic Diversification: No presence in high-growth South India, West India, East India markets
• Expansion Risks: Entering new geographies (Gorakhpur, UP) requires establishing brand, relationships, regulatory navigation

6. Regulatory & Compliance Risks – Healthcare Sector Scrutiny:

• NABH/NABL Accreditation Maintenance: Continuous compliance required; loss of accreditation catastrophic
• State-Specific Regulations: Operating across Haryana, Delhi, Punjab, Rajasthan – multiple regulatory jurisdictions
• Clinical Negligence Lawsuits: Medical malpractice litigation risk; damages, reputation impact
• Government Pricing Control: CGHS rate revisions impact reimbursements (recent revision positive, but future cuts possible)
• Drug Price Control: Essential medicines pricing regulations affect pharmacy revenues
• Environmental Compliance: Bio-medical waste management, effluent treatment standards

7. Execution Risk in Capacity Expansion – 1,650 Bed Addition Target:

• Ambitious Target: 50% capacity increase (3,250 to 4,900 beds) by March 2028 in 2.5 years
• 5 Projects Underway: Ambala, Panchkula, Rohtak, Gorakhpur, New Delhi – simultaneous execution challenges
• Capital Requirements: ₹60.5 cr allocated from IPO for Park Medicity (NCR), but 4 other projects need funding
• Project Delays: Construction delays, regulatory approvals, equipment procurement can push timelines
• Ramp-Up Period: New hospitals take 2-3 years to reach optimal occupancy; near-term profitability drag
• Operational Complexity: Managing 14 existing + 5 new hospitals simultaneously strains management bandwidth
• Risk: If expansion delayed or under-delivers, growth targets missed, investor expectations unmet

---

Disclaimer

This information is based on publicly available sources including SEBI DRHP/RHP filings, company disclosures, news reports, and industry research. Investors should conduct their own research and consult with financial advisors before making investment decisions.

Past performance is not indicative of future results. The company reported strong financial performance (H1 FY26: 17% revenue growth, 23% PAT growth), is the second-largest private hospital chain in North India with 3,250 beds expanding to 4,900 by March 2028, but faces significant risks including high debt burden (₹624.3 crore with only ₹380 crore being repaid), credit rating downgrades (CARE A- to BBB+, BRL to B+), extremely high doctor attrition rate (33.72%), intense competition from larger chains (Apollo, Fortis, Max Healthcare, Medanta with 10-25X larger scale), human resource challenges, acquisition integration risks, geographic concentration in North India, and execution risks in aggressive capacity expansion. OFS of ₹150 crore (16.3%) represents modest promoter exit by Dr. Ajit Gupta. Grey Market Premium of ₹30-33 (19-20%) indicates positive investor sentiment but unofficial and volatile. Investors must carefully review detailed financial data, debt covenants, expansion timelines, and risk factors in RHP before applying. Mainboard IPO investments carry market risks; read offer document carefully.