Park Medi World IPO opens today: Should you subscribe to the ₹920 crore issue?

The initial share sale of Park Medi World, which operates the Park Hospital chain across North India, opens for public subscription on Wednesday, December 10 and closes on December 12. The company aims to raise ₹920 crore through the IPO.

Park Medi World has raised ₹276 crore via anchor book on December 9, a day before the IPO launch for the public.

Investors who participated in the anchor book included Kotak Mahindra AMC, Allianz Global Investors Fund, Reliance General Insurance Company, Abakkus Asset Manager, Carnelian Bharat Amritkaal Fund, SBI General Insurance, Winro Commerical, Societe Generale, among others.

At the upper end of the ₹154 to ₹162 price band, the valuation works out to 29.2 times financial year 2025 price-to-earnings. BP Wealth has recommended subscribing to the issue.

SBI Securities has taken a neutral stance and said it would prefer to monitor the company's performance post listing.

While growth over the past three years has been modest, Park Medi World is expanding capacity and widening its geographical footprint to drive future scale. It has added 700 beds in the last 2.5 years and plans to add another 1,650 across UP, Delhi, Haryana and Punjab by FY28.

Compared with peers, the issue appears reasonably priced with stronger margins and returns, although revenue growth has lagged competitors. The company's high debtor days — 161 days in FY25 — are largely due to its sizeable exposure to government schemes, the brokerage said.

Swastika Investmart also said valuations are fair at 29.21x P/E against higher industry multiples, led by an improving margin profile. It believes the IPO is suitable for medium to long term investors.

Retail investors can apply for a minimum lot of 92 shares, amounting to ₹14,904 at the upper end of the band. Applications can be made in multiples of 92 shares. At the top band, the company is expected to list with a market capitalisation of ₹6,997.28 crore.

Of the total offer, 35% is reserved for retail investors, 50% for qualified institutional buyers and 15% for non institutional investors.

For small HNIs, the minimum bid size is 1,288 shares (₹2,08,656), while large HNIs must apply for at least 6,256 shares (₹10 lakh).

The IPO comprises a ₹770 crore fresh issue and a ₹150 crore offer for sale by promoter Dr Ajit Gupta. The issue size is lower than the earlier draft plan of ₹1,260 crore, which included a larger fresh issue and OFS.

Promoters currently own 95.55% of the company. Public shareholders hold the remaining 4.55%, including Abakkus Asset Manager, Carnelian, SBI General Insurance, Sattva Developers and Urudavan Investment, which together acquired 3.6% between October and November.

From the fresh issue proceeds, ₹380 crore will go towards debt repayment. As of October 2025, consolidated borrowings stood at ₹624.3 crore. Another ₹60.5 crore will fund the development of a new hospital under subsidiary Park Medicity (NCR), and ₹27.4 crore will be used to purchase medical equipment for Park Medi World and subsidiaries Blue Heavens and Ratangiri. The rest will be set aside for general corporate purposes.

Park Medi World runs 14 NABH accredited multi super specialty hospitals under the Park brand — eight in Haryana, one in Delhi, three in Punjab and two in Rajasthan. It offers more than 30 super specialty and specialty services including internal medicine, neurology, urology, gastroenterology, general surgery, orthopedics and oncology.

For the six months ended September 2025, the company reported a profit of ₹139.1 crore, up 23.3% from ₹112.9 crore a year ago. Revenue rose 17% to ₹808.7 crore from ₹691.5 crore.

Nuvama Wealth Management, CLSA India, DAM Capital Advisors and Intensive Fiscal Services are the book running lead managers to the IPO.

Allotment will be finalised on December 15, with a tentative listing date of December 17 on the BSE and NSE.

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