Paras Healthcare IPO: Company Plans to Raise Rs 400 Crore

Paras Healthcare files Draft Red Herring Prospectus with SEBI, this IPO is a book-built issue from which the company seeks to raise Rs 400 crore from the fresh offering and OFS consists of 1,49,74,010 crore equity shares. The face value of each equity share is set at Rs 1. The OFS includes 2,928,320 equity shares from Dr. Dharminder Kumar Nagar and up to 12,045,690 equity shares from Commelina Limited.

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Paras Healthcare IPO: About the Company

Paras Healthcare Limited is the fifth largest healthcare provider in terms of bed capacity in the North India region. Paras Healthcare manages eight hospitals under the “Paras Health” brand, located in five states and one union territory in North India. These locations include 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.
 
Paras Healthcare focuses on providing specialised tertiary medical care in Tier-2 and Tier-3 cities, aiming to balance quality healthcare services with affordability. The company offers a range of clinical specialities across its hospitals, including cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics, and joint replacement.

Paras Healthcare IPO: Objectives

The company plans to use the net funds from the IPO for the prepayment or repayment of a portion of its outstanding loans, investment in its subsidiaries, either as debt or equity, to support the repayment or prepayment of borrowings by these subsidiaries. The remaining funds will be used for the general corporate purposes.
 
Para’s DRHP indicates that the company may pursue mergers and acquisitions to enhance operational efficiency, consolidate its market position, and expand its expertise and capabilities.

Financials of Paras Healthcare Limited

In Fiscal 2022, the company’s revenue from operations was Rs 7799.24 million; in fiscal 2023, revenue increased to Rs 9,179.20 million, and in fiscal 2024, the revenue jumped to Rs 11,290.39 million. The financials indicate that business is expanding, and revenue is likely to increase in the coming fiscal years. 
 
The company expenses for fiscal 2022 is Rs 7,934.55 million, fiscal 2023 is Rs 9,631.06 million and fiscal 2024 is Rs 11,443.93 million. 
 
The company expenses on every fiscal is more than its revenue from operation. It says that the company is still incurring losses.

Paras Healthcare IPO: Lead Managers and Registrar

The lead managers for this IPO are ICICI Securities Limited, IIFL Securities Limited and Motilal Oswal Investment Advisors Limited. The registrar for this public is Link Intime India Private Limited.

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