Paras Healthcare files DHRP with SEBI to raise Rs 1,800 crore via its 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). The clinical specialty-led hospital platform provides tertiary and quaternary healthcare services and operates under the Paras Health brand.

The proposed offer comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale of equity shares aggregating up to Rs 1,300 crore by the selling shareholder, taking the total offer size to up to Rs 1,800 crore. The face value of each equity share is Rs 1, and the shares are proposed to be listed on the BSE and NSE.

As of March 31, 2026, the company operated a network of eight hospitals with an aggregate bed capacity of 2,211 beds. It has a presence in five states and one union territory: Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur in Uttar Pradesh; Udaipur in Rajasthan; Ranchi in Jharkhand; and Srinagar in the Union Territory of Jammu and Kashmir. Dr Dharminder Kumar Nagar is the promoter of the company.

Paras Healthcare said the net proceeds from the fresh issue will be used for prepayment or scheduled repayment, in full or in part, of certain outstanding borrowings availed by the company; investment in its wholly owned subsidiary PMHPL, which operates its hospital in Srinagar, for repayment or prepayment, in full or in part, of PMHPL borrowings; and general corporate purposes.

The company also has an expansion pipeline that includes a 300-bed hospital in Gurugram and a 500-bed hospital in Ludhiana, which it intends to launch by Fiscal 2027 and Fiscal 2028, respectively. It expects total bed capacity across its hospitals to rise to 3,011 beds by March 31, 2028.

Over the last three fiscals, on a consolidated basis, the company reported growth driven by higher patient volumes across its hospitals. Revenue from operations grew at a CAGR of 19.26 per cent, from Rs 1,129.039 crore in FY24 to Rs 1,605.952 crore in FY26, driven by higher occupied bed days and ARPOB at its Mature Hospitals.

EBITDA grew at a CAGR of 47.41 per cent, from Rs 154.411 crore in FY24 to Rs 335.577 crore in FY26, with margins expanding as its Emerging Hospitals and New Hospitals ramped up. JM Financial, BofA Securities India and Nuvama Wealth Management are the book running lead managers to the issue.