Paras Healthcare Limited, which operates the popular 'Paras Health' brand, has filed its draft red herring prospectus (DRHP) with the capital markets regulator SEBI. The company aims to raise up to ₹1,800 crore through its initial public offering. Specifically, this upcoming Paras Healthcare IPO represents a major step in the hospital chain's expansion strategy across India. Investors and healthcare professionals are closely watching this development.

Key Details of the Paras Healthcare IPO

The proposed public issue is a mix of fresh capital and an offer-for-sale. According to the preliminary papers, the IPO comprises a fresh issue of equity shares aggregating up to ₹500 crore. Additionally, there is an Offer-For-Sale (OFS) of equity shares worth up to ₹1,300 crore by the selling shareholders. Consequently, the total issue size stands at ₹1,800 crore. Those selling shares in the OFS include promoter Dr. Dharminder Kumar Nagar and other key institutional investors. Therefore, the promoter will maintain a strong holding while allowing new investors to participate.

Utilization of Funds and Financial Performance

The Gurugram-based healthcare provider plans to deploy the proceeds strategically. First, the company will utilize ₹320.90 crore from the fresh issue to prepay or repay outstanding borrowings. Second, it plans to invest ₹54.10 crore in its wholly-owned subsidiary, PMHPL, to manage its debt obligations. The remaining amount will support general corporate purposes and IT infrastructure. Additionally, Paras Healthcare is on a strong growth trajectory. In fiscal year 2026, the company's revenue from operations reached ₹1,605.95 crore. Furthermore, its EBITDA stood at ₹335.58 crore during the same period, showing solid operational efficiency.

Network Expansion and Future Outlook

Currently, the hospital platform operates eight facilities across five states and one union territory. These locations include Haryana, Bihar, Uttar Pradesh, Rajasthan, Jharkhand, and Jammu & Kashmir. As of March 31, 2026, the network possesses an aggregate capacity of 2,211 beds. Specifically, the company plans to add a 300-bed hospital in Gurugram by fiscal year 2027. Additionally, it will establish a 500-bed hospital in Ludhiana by fiscal year 2028. Consequently, its total bed capacity will rise to 3,011 beds. This expansion will significantly enhance healthcare access in North India.

Frequently Asked Questions

Q1: What is the total size of the Paras Healthcare IPO?

The total issue size of the IPO is up to ₹1,800 crore, which includes a fresh issue of ₹500 crore and an offer-for-sale (OFS) of ₹1,300 crore.

Q2: How does Paras Healthcare plan to use the IPO proceeds?

The company will use the fresh issue proceeds primarily for debt repayment of the parent company and its subsidiary, alongside general corporate purposes.

Q3: What is the current and projected bed capacity of Paras Health?

As of March 31, 2026, the company has 2,211 beds. However, with new hospitals in Gurugram and Ludhiana, capacity will rise to 3,011 beds by March 31, 2028.

Disclaimer: This content is for informational and educational purposes only. It does not constitute medical advice or replace professional judgment. Refer to the latest local and national guidelines for clinical practice.

References

1. Paras Healthcare files papers with Sebi for Rs 1,800-cr IPO - ETHealthworld


2. North India's Largest Hospital Chain Files Papers For ₹1,800 Cr IPO, Targets 3,011 Beds By FY28


3. Paras Healthcare Files Papers With SEBI for ₹1,800-Cr IPO - Outlook Business