Paras Healthcare Ltd Files for IPO to Fuel Expansion

Paras Healthcare Ltd, which operates the 'Paras Health' hospital chain, has filed for an IPO to raise funds. The offering includes a fresh issue and an offer for sale by promoters and investors. Funds will be used to repay debt, invest in subsidiaries, and for corporate purposes.

Paras Healthcare Ltd, the operator of the 'Paras Health' hospital chain, has submitted draft papers to market regulator Sebi to initiate an initial public offering (IPO).

The IPO will feature a fresh issue of equity shares worth up to Rs 400 crore and an offer for sale (OFS) of up to 1.5 crore shares by a promoter and an investor shareholder, as detailed in the firm's draft red herring prospectus (DRHP).

The OFS includes a divestment of 29.28 lakh equity shares by promoter Dharminder Kumar Nagar and 1.2 crore shares by investor Commelina Ltd. Consequently, the funds raised will be allocated for debt repayment, investments in subsidiaries such as Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited, and general corporate purposes.

Currently, Paras Healthcare operates eight hospitals under the 'Paras Health' brand across various locations including Gurugram, Panchkula, Patna, Darbhanga, Kanpur, Udaipur, Ranchi, and Srinagar, with a total bed capacity of 2,135 beds as of March 2024. The company specializes in tertiary medical care in Tier 2 and Tier 3 cities, offering clinical specialties such as cardiac sciences, oncology, neuro sciences, gastro sciences, and orthopedics.

ICICI Securities, IIFL Securities, and Motilal Oswal Investment Advisors have been named as the lead managers to the IPO.

(With inputs from agencies.)