Park Medi World IPO Opens: 10 Key Things To Know Before You Subscribe: Anand Rathi Report

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Anand Rathi Report

The Park Medi World IPO was subscribed 0.17 times as of 12:21 p.m. on Wednesday.

Here are the 10 things to know before investing in Park Medi World IPO.

1. Park Medi World Ltd. launched its initial public offering today, December 10 and the offer closes for subscription on Dec 12.

2. The North India–based multi-super speciality hospital chain, operating under the “Park” brand has fixed the price band in the range of Rs 154 to Rs 162 per share with a face value of Rs 2.

3. Investors can place bids starting from a minimum of 92 shares and in multiples thereafter, amounting to a minimum investment of Rs 14,904. 

4. The Park Medi World IPO is a book-building issue worth Rs 920 crore. It comprises a fresh issue of 4.75 crore shares, amounting to Rs 770 crore, and an offer-for-sale (OFS) of 93 lakh shares, aggregating to Rs 150 crore.

5. Nuvama, CLSA India, DAM Capital Advisors, Intensive Fiscal Services are the book-running lead managers for the public issue while KFin Technologies is the registrar to the offer.

6. Objects of the Fresh Issue:

• Repayment / pre-payment, in full or part, of certain outstanding borrowings availed by the company and its subsidiaries.

• Funding capital expenditure for development of new hospitals by their subsidiary, Park Medicity (NCR).

• Funding capital expenditure for development of medical equipment’s by their subsidiary, Blue Heavens and Ratnagiri.

• Unidentified inorganic acquisitions and general corporate purposes.

7. Apollo Hospital, Fortis Healthcare, Narayana Hrudalaya, Max Healthcare, Krishna Institute of Medical Sciences, Global Healthcare, Jupiter Lifeline Hospitals, Yatharth Hospital Trauma Care Services are the few other listed peers in the space.

8. Competitive Strengths:

• Second largest chain of private hospitals in North India and largest private hospital chain in Haryana.

• Delivering high-quality and affordable healthcare with a diverse specialty mix.

• Track record of successfully acquiring and integrating hospitals.

• Strong operational and financial performance with diversified payor mix.

9. Key Strategies:

• Expand their hospital network through organic and inorganic initiatives with a focus on North India.

• Grow their presence to adjacent markets.

• Focus on scaling their operations and improve operational efficiencies.

• Retaining and attracting skilled and experienced doctors and clinicians.

10. Key Risk:

• As of September 30, 2025, their contingent liabilities (excluding corporate guarantees) represented 11.7% of their net worth, while corporate guarantees issued by the Company and its subsidiaries accounted for 71.6% of their net worth. If any of these contingent liabilities materialize, they could adversely impact their results of operations, cash flows, and overall financial condition.

• Any downgrade in their credit ratings could increase borrowing costs, which in turn could adversely affect their borrowing cost, business, results of operations, financial condition, and cash flows

• They witnessed a decline in their revenue from operations and restated profit after tax, as well as an increase in their cost of materials consumed/services rendered, in Fiscal 2024 compared to Fiscal 2023. A similar decline in revenue from operations and restated profit after tax or an increase in costs may adversely affect their business, financial condition, results of operations, and cash flows.

• They are highly dependent on doctors, nurses, medical professionals, and support staff. As of September 30, 2025, the attrition rate of their doctors was 33.7%. If they are unable to retain or attract such professionals, their business, results of operations, and financial condition may be adversely affected.

• A significant portion of their revenue from operations is derived from their hospitals located in Haryana, which comprised 69.1%, 74.6%, 73.4%, 76.9%, and 83.9% of their revenue from operations in the six months ended September 30, 2025, and September 30, 2024, and Fiscals 2025, 2024, and 2023, respectively. Any adverse developments at these hospitals or in the state could have an adverse effect on their business, results of operations, and financial condition.

• The nature of their business involves high costs, including the cost of materials purchased, employee benefit expenses, and professional and consultancy fees, and failure to pass on such costs to patients could adversely affect their business, results of operations, and financial condition.

• They may not be successful in developing their proposed hospitals and may not achieve the operating capacities they anticipate, any of which could adversely affect their business, results of operations, financial condition, and prospects.

• Their arrangements with certain doctors are on a consultancy basis. If these doctors discontinue their association with them or are unable to provide their services at their hospitals, their business and results of operations may be adversely affected.

• They have entered into related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with other shareholders.

Valuation & Outlook:

Park Medi World is a North India–based multi-super speciality hospital chain, operating under the “Park” brand with a strong presence in Haryana, Delhi, Punjab, and Rajasthan, and is among the largest private hospital networks in the region with an estimated bed capacity of around 3,000– 3,250 beds as of 2025.

The company offers over 30 medical specialties, including neurology, orthopedics, oncology, gastroenterology, and critical care. It is expanding its network with upcoming projects across cities like Ambala, Panchkula, Rohtak, New Delhi, Gorakhpur, and Kanpur.

They are the second-largest private hospital chain in North India with 3,000 beds and the largest in Haryana with 1,600 beds as of March 31, 2025.

Since their incorporation in 2011, their strong presence across North India has enabled them to develop a deep understanding of regional nuances, patient needs, and infrastructure requirements. They focus on managing operating costs through several measures, including the use of modern medical technology to shorten recovery time, employing full-time doctors, consultants, nurses, and medical staff, building strong vendor relationships, and leveraging economies of scale across their hospital network.

They have a strong track record of acquiring and integrating hospitals, completing eight acquisitions that added 1,650 beds and significantly expanded their regional presence, patient reach, and overall growth.

At the upper price band, the company is valued at 32.8x FY25 P/E, implying a post-issue market capitalization of Rs 53,559 million.

They aim to tap into the growing demand for affordable, high-quality healthcare by expanding their hospital network through both organic growth and strategic acquisitions.

They are focused on improving occupancy at existing hospitals and scaling operations at newer facilities by investing in high-end equipment, advanced technology, new clinical programs, and additional skilled medical professionals.

A key element of their strategy is to attract and retain qualified and experienced doctors, consultants, and medical professionals to maintain and enhance the quality of care they provide.

Considering these factors, the IPO appears fairly valued and is rated “Subscribe – Long Term.”

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