Paras Healthcare Files INR 400 Cr IPO

The OFS includes promoter Dharminder Kumar Nagar selling 29.28 Lakh equity shares and investor Commelina Ltd divesting 1.2 Cr shares.

Paras Healthcare, operating under the 'Paras Health' brand, has filed draft papers with market regulator SEBI for an initial public offering (IPO) to raise funds.

The IPO is a combination of a fresh issue of equity shares worth up to INR 400 Cr and an offer for sale (OFS) of up to 1.5 Cr shares, with a face value of INR 1 for each equity share, according to the draft red herring prospectus (DRHP).

The OFS includes promoter Dharminder Kumar Nagar selling 29.28 Lakh equity shares and investor Commelina Ltd divesting 1.2 Cr shares.

Further, the Delhi NCR-based hospital chain plans to use the proceeds from the fresh issue for debt repayment, investment in subsidiaries Paras Healthcare (Ranchi) and Plus Medicare Hospitals, as well as for general corporate purposes.

Currently, Paras Healthcare operates eight hospitals across 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 focuses on providing specialized tertiary medical care in Tier-II and Tier-III cities. It offers various clinical specialties, including cardiac sciences, oncology, neurosciences, gastro sciences, and orthopedics and joint replacement.

Earlier, Paras Healthcare had raised INR 260 Cr from Creador by issuing Compulsorily Convertible Preference Shares (CCPS) in July 2017. The CCPS were converted into equity shares in September 2018, giving Creador a 24.68% equity stake in the company.

Paras with revenues of INR 1151 Cr in FY24, is the fifth largest healthcare provider in terms of bed capacity in North India, with a capacity of 2,135 beds.

ICICI Securities, IIFL Securities, and Motilal Oswal Investment Advisors are the book-running lead managers for the public issue.

Just Days back, Akums Pharma debuted in the Stock Market with its IPO being fully subscribed on Day 1. The IPO, which opened on Tuesday with a price band of INR 646-679, saw a subscription rate of 1.37 times by the end of Day 1.

The proceeds from the fresh issue will be allocated towards repaying or prepaying debt, funding incremental working capital requirements, pursuing inorganic growth through acquisitions, and general corporate purposes.