A well known private healthcare provider in North India, Metro Group of Hospitals is planning to launch an INR 1,000 crore IPO, a move that will cement its position as a major player in India’s growing healthcare sector. Some reports indicate that the company will file its DRHP with the Securities and Exchange Board of India (SEBI) in the next 2-3 months.
Founded in 1997 by renowned cardiologist Dr. Purshotam Lal, Metro has grown into a network of multi-specialty hospitals across Delhi-NCR and northern India, including Meerut, Noida and Jaipur. With over 2,500 operational beds across 12 hospitals, including an international facility in Oman, the group is now gearing up for its biggest leap yet—an IPO to raise capital for expansion, debt reduction and technology upgradation.
Metro Group of Hospitals IPO: Structure and Purpose
Metro Hospital IPO will be sized around INR 1,000 crore and it will be a combination of fresh and OFS from existing shareholders. Majority of the proceeds will come from the fresh issue which will be used to:
- Expand hospital infrastructure
- Increase total bed capacity from 2,500 to 4,000 in next 3 years
- Enter tier 2 markets
- Invest in latest medical technology
- Repay debt and support working capital needs
ICICI Securities, Axis Capital and JM Financial have been appointed as the lead book running managers for the issue.
Metro Group of Hospitals: Financials
Metro Hospital’s financials are strong enough to back its IPO plans. As per a September 2024 report by Care Ratings:
- FY24 revenue was INR 1,375.38 crore, up 46% YoY
- Net profit was up 85% at INR 235.16 crore
- CAGR of 22% in topline growth over last 3 years
The growth has been driven by 30% increase in average revenue per occupied bed, improved occupancy across hospitals and sharp increase in surgical procedures.
Sector Tailwinds and Investor Appetite
Metro Hospital IPO comes at a time when there is a lot of interest in Indian healthcare assets. The sector has seen a string of successful IPOs in recent years:
- Dr. Agarwal’s Eye Hospital – INR 3,027 crore (Jan 2025)
- Global Health (Medanta) – INR 2,205 crore (Nov 2022)
- Krishna Institute of Medical Sciences – INR 2,143 crore (2021)
- Smaller players like GPT Healthcare, Jupiter Life Line, and Yatharth Hospital have also gone public recently
And Paras Healthcare, another North India-based hospital chain, has also filed for an IPO, indicating a broader consolidation and growth story in the space.
Investor confidence has been boosted by post-pandemic awareness, rising incomes and government support to expand medical infrastructure in smaller cities and rural areas.
Leadership Vision and Strategic Outlook
Dr. Purshotam Lal, Metro’s Chairman and Managing Director, was optimistic about the upcoming listing.
“Our IPO is a big milestone for us. The funds raised will help us take world-class healthcare to more people and strengthen our position as a leader in affordable quality healthcare,” he said in a statement.
The company’s strategy is to increase bed capacity but also improve service quality, integrate digital health solutions and pursue selective acquisitions if opportunities arise.
Conclusion
Metro Group of Hospitals INR 1,000 crore IPO is well timed for the Indian healthcare sector where demand is outpacing supply in many areas. With a proven growth story, scalable business model and focused leadership team, Metro’s IPO will attract strong interest from institutional and retail investors.
If executed as planned, the IPO will not only consolidate Metro’s position in the industry but also be a bellwether for similar mid-cap hospital chains looking to unlock value. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.