Park Medi World IPO Day 2: Subscriptions Slow, Investors Watch Closely

Park Medi World, which manages the Park Hospital network in Northern India, has launched its IPO on December 10. The IPO is open for subscription until Friday, December 12, and the company is aiming to raise Rs 920 crore from the issue. The IPO has received subscription of 0.76 times by midday Thursday.

The IPO consists of a fresh issue of 4.75 crore shares amounting to Rs 770 crore and an OFS of 0.93 crore shares worth Rs 150 crore. The price bracket has been fixed at Rs 154-162 per share. The allotment date is December 15, and the successful applicants' accounts will be credited on December 16. Refunds for investors who do not receive shares will also take place that day. The stock market listing is expected to take place on December 17.

Part of the proceeds from the new issuing will be used to pay off Rs 380 crore of the company’s debts and debts of the subsidiaries. Besides, new hospital construction and the updating of current facilities will get Rs 60.5 crore, and investment in medical equipment will receive Rs 27.46 crore. The remaining money is to cover general corporate expenses and potential future growth via mergers or acquisitions.

Before the IPO opening, Park Medi World attracted Rs 276 crore from the anchor investors on December 9. The issue has been structured such that 50% at most goes to QIBs, 35% at least to retail, and 15% to non-institutional investors. Investors must apply in multiples of 92 shares, thus retail investment is minimum Rs 14,904.

Nuvama Wealth Management, CLSA India, DAM Capital, and Intensive Fiscal Services are acting as co-managers for the IPO. KFin Technologies is responsible for carrying out the registrar duties.

The grey market premium (GMP) has decreased to Rs 14 from Rs 20 on Thursday, and the investor interest looks very low. That translates into a possible listing price of about Rs 176, which is 8.64% higher than the upper limit of the price band. In unofficial trading, the GMP indicates the amount over the IPO price that buyers are willing to pay.

As of 12:05 pm on the second day of trading, the total subscription had reached 0.76x. The retail investor category accounted for 0.93x of the subscription, non-institutional investors for 1x, and QIBs for 0.28x. In total, bids were received for 3.02 crore shares against the 3.97 crore shares that were offered.

According to Master Capital Services, Park Medi World is set to take advantage of the healthcare sector's growth, which is projected to increase from Rs 6.9-7.0 trillion in FY25 to Rs 9.4-9.8 trillion by FY28. The company's multi-super specialty hospitals, technology adoption, and patient-centric model are expected to help it grow in the long term. The company chain will likely benefit from an aging population, rising lifestyle diseases as well as the PMJAY government scheme.

Anand Rathi Research pointed out that the company's valuation stood at 32.8x FY25 P/E at the top of the price band, suggesting a post-issue market cap of Rs 5,355.9 crore. The brokerage identified Park Medi World’s growth through acquisitions, organic growth, and higher occupancy at the existing facilities as the value creators. It also stressed the need to attract and retain skilled medical professionals to ensure quality care. Anand Rathi has given a “Subscribe – Long Term” rating to the IPO.

Company Overview

Park Medi World has opened hospitals that have received NABH-accreditation and are therefore recognized as multi-super specialty hospitals. This hospital group has a total bed capacity of 3,000 which places it as North India's second-largest private hospital operator while in Haryana it is the largest with 1,600 beds.

Its total bed capacity was augmented from 2,550 in March 2023 to 3,250 by September 2025. Among the extension projects are those in Ambala, Panchkula, Rohtak, New Delhi, Gorakhpur, and Kanpur.

The profit figure for the company rose to Rs 213 crore in FY25, which was higher than the previous financial year’ profit of Rs 152 crore but less than that of Rs 228 crore in FY23. The revenue also recorded an increase as it reached Rs 1,426 crore in FY25, which is a rise from FY24's revenue of Rs 1,263 crore and FY23's revenue of Rs 1,272 crore.