Paras Healthcare IPO: Paras Healthcare has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth up to ₹1,800 crore.
The company, which operates under the “Paras Health” brand, is a clinical specialty-led hospital platform focused on tertiary and quaternary healthcare services. It runs a network of eight hospitals with an aggregate capacity of 2,211 beds as of March 31, 2026.
Its presence spans five states and one union territory, including 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. The company is promoted by Dr. Dharminder Kumar Nagar.
IPO Details
The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹500 crore and an offer for sale (OFS) of shares worth up to ₹1,300 crore by the selling shareholder, taking the total issue size to up to ₹1,800 crore. Each equity share carries a face value of Re 1. The price band for issue is yet to be announced.
The company plans to utilise the net proceeds from the fresh issue towards the prepayment or scheduled repayment of certain outstanding borrowings. A portion of the proceeds will also be invested in its wholly owned subsidiary, PMHPL, which operates the Srinagar hospital, for repayment or prepayment of its borrowings. The remaining funds will be used for general corporate purposes.
The equity shares proposed under the IPO are expected to be listed on both the BSE and NSE. JM Financial, BofA Securities India and Nuvama Wealth Management have been appointed as the book-running lead managers to the issue.
Expansion Plans and Financials
Paras Healthcare has outlined an ambitious expansion roadmap as it seeks to strengthen its position in India’s healthcare sector. The company plans to add a 300-bed hospital in Gurugram by FY27 and a 500-bed hospital in Ludhiana by FY28. These additions are expected to increase its total bed capacity to 3,011 beds by March 31, 2028.
“Paras Healthcare has built a clinical specialty-led healthcare platform with a network of eight hospitals and an aggregate capacity of 2,211 beds across North India, Bihar, Jharkhand and Jammu & Kashmir, positioning it strongly in tertiary and quaternary healthcare services.”
The company has delivered strong financial growth over the last three fiscal years, supported by rising patient volumes across its hospital network. Revenue from operations grew at a compound annual growth rate (CAGR) of 19.26%, increasing from ₹1,129.039 crore in FY24 to ₹1,605.952 crore in FY26. The growth was driven by higher occupied bed days and an increase in average revenue per occupied bed (ARPOB) at its mature hospitals, reflecting the company’s focus on high-acuity specialties and clinical programmes.
The company’s profitability has expanded at an even faster pace. EBITDA rose at a CAGR of 47.41%, climbing from ₹154.411 crore in FY24 to ₹335.577 crore in FY26. EBITDA margins also improved as emerging and newly established hospitals scaled up operations and began generating operating leverage.
“The company’s revenue from operations increased at a CAGR of 19.26% between FY24 and FY26, while EBITDA grew at a CAGR of 47.41%, supported by higher patient volumes, improving ARPOB and operating leverage from emerging and new hospitals.”
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
