Gurugram-based Park Hospitals has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise INR 1,260 crore through an initial public offering (IPO), marking a significant milestone in its journey as North India’s second-largest private hospital chain.
Park Hospitals IPO: Fresh Issue and OFS
According to the DRHP, the IPO comprises:
- Fresh Issue: INR 960 crore
- Offer for Sale (OFS): INR 300 crore by promoter Dr. Ajit Gupta
- Total Offer Size: INR 1,260 crore
- Face Value: INR 2 per share
The equity shares are proposed to be listed on both BSE and NSE, with the designated stock exchange to be finalized.
Promoters and Key Stakeholders
The company is promoted by Dr. Ajit Gupta, who is also the Chairman, and Dr. Ankit Gupta, the Managing Director. Dr. Ajit Gupta is the sole selling shareholder in the OFS, with a weighted average acquisition cost of INR 0.08 per share.
Park Hospitals IPO: Fund Utilization
The net proceeds from the fresh issue are proposed to be used as follows:
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company and certain of its subsidiaries – INR 410 crore
- Funding capital expenditure for the development of a new hospital and the expansion of the existing hospital by the certain subsidiaries, Park Medicity (NCR) and Blue Heavens – INR 110 crore
- Funding capital expenditure for purchase of medical equipment by the company and its certain subsidiaries, Blue Heavens and Ratangiri – INR 77.19 crore
- Unidentified inorganic acquisitions and general corporate purposes
Business Overview
Park Medi World operates 13 NABH-accredited multi-super specialty hospitals under the ‘Park’ brand across Delhi, Haryana, Punjab, and Rajasthan. It is:
- The second-largest private hospital chain in North India
- The largest in Haryana, with 1,600 beds
- Currently operates 3,000 beds, including 805 ICU beds and 63 OTs as of 30 September 2024
- Offers over 30 specialty and super specialty services
Financials Performance
Park Hospitals has shown consistent operational and financial growth:
| FY 2022 | FY 2023 | FY 2024 | H1 FY 2025 | |
| Revenue | 1,084.38 | 1,254.60 | 1,231.07 | 691.51 |
| Expenses | 815.59 | 955.37 | 1,041.66 | 559.95 |
| EBITDA | 343.71 | 390.34 | 310.30 | 189.62 |
| Net income | 199.38 | 228.19 | 152.01 | 112.89 |
| ROCE (%) | 28.89 | 26.78 | 16.07 | 9.63 |
| EBITDA (%) | 31.70 | 31.11 | 25.21 | 27.42 |
| ROE (%) | 42.44 | 35.82 | 18.25 | 11.38 |
| Debt/Equity | 0.95 | 0.79 | 0.73 | 0.62 |
Expansion Pipeline
Park Hospitals plans to increase its total bed capacity from 3,000 to 4,350 by March 2028 through upcoming projects in:
- Ambala: Expansion to 450 beds with an onco-radiation facility by October 2027
- Panchkula: New 300-bed hospital by April 2026
- Rohtak: 250-bed facility by December 2026
- Gorakhpur: 400-bed hospital under O&M agreement by April 2026
- New Delhi: Proposed acquisition of Febris Multi-Specialty Hospital, pending NCLT approval
Technology-Driven Clinical Excellence
Park Hospitals has implemented iMARS robotic surgery systems at three locations to enhance minimally invasive care. It also operates dedicated cancer units and trauma centers, and five hospitals are authorized to perform kidney transplants.
Strategic Market Position and Future Outlook
Backed by a growing middle-class patient base and a cluster-based expansion model, Park Hospitals is well-positioned to meet rising healthcare demands in underpenetrated North Indian states. Its strong focus on affordability and clinical excellence continues to drive profitability.
Conclusion
Park Hospitals’ DRHP filing marks a pivotal move to fuel its next phase of expansion and strengthen its leadership in North India’s private healthcare sector. With a robust operating model, proven acquisition track record, and sound financial performance, the upcoming IPO could attract significant investor interest, particularly from those eyeing the long-term potential of India’s healthcare industry.
In the first two months of 2025, a total of 10 Mainboard IPOs were listed in the Indian markets. These IPOs cumulatively raised INR 15,983.05 crore. Out of these, 3 IPOs delivered negative returns. The average listing returns for the last two month stand at 17.53%. It is quite low compared to 29.15% for the IPOs listed in November and December 2024. For more details related to IPO GMP, and Live Subscription, stay tuned to IPO Central.