Paras Healthcare, a prominent clinical specialty-led hospital platform operating under the 'Paras Health' brand, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed Initial Public Offering (IPO) seeks to raise a total of up to ₹1,800 crore.
IPO Structure and Funding Utilisation
The public offering comprises two main components: a fresh issue of equity shares aggregating up to ₹500 crore and an offer for sale (OFS) of equity shares by existing selling shareholders totaling up to ₹1,300 crore. The equity shares, each with a face value of ₹1, are slated for listing on both the BSE and NSE.
Paras Healthcare intends to strategically deploy the net proceeds from the fresh issue. A significant portion will be allocated to the prepayment or scheduled repayment of outstanding borrowings of the company. Additionally, funds will be invested in its wholly-owned subsidiary, PMHPL, which manages the Srinagar hospital, for similar debt repayment purposes. Remaining funds will be used for general corporate objectives.
Current Operations and Network
As of March 31, 2026, Paras Healthcare operates an extensive network of eight hospitals, boasting an aggregate bed capacity of 2,211 beds. The healthcare provider has a strong presence across five states and one Union Territory in India, with facilities in key locations such as Gurugram and Panchkula (Haryana), Patna and Darbhanga (Bihar), Kanpur (Uttar Pradesh), Udaipur (Rajasthan), Ranchi (Jharkhand), and Srinagar (Jammu and Kashmir). Dr. Dharminder Kumar Nagar is the promoter of the company.
Ambitious Expansion Plans
The company has outlined ambitious expansion plans to bolster its healthcare infrastructure. An upcoming 300-bed hospital in Gurugram is targeted for launch by Fiscal Year 2027, followed by a substantial 500-bed hospital in Ludhiana by Fiscal Year 2028. These additions are projected to increase Paras Healthcare's total bed capacity across its network to 3,011 beds by March 31, 2028, significantly enhancing its service delivery capabilities.
Strong Financial Performance
Paras Healthcare has demonstrated robust financial growth over the past three fiscal years, driven by increasing patient volumes across its hospitals. On a consolidated basis, revenue from operations grew at a Compound Annual Growth Rate (CAGR) of 19.26%, rising from ₹1,129.039 crore in FY24 to ₹1,605.952 crore in FY26. This growth was primarily fueled by higher occupied bed days and improved average revenue per occupied bed (ARPOB) at its Mature Hospitals.
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also saw impressive growth, increasing at a CAGR of 47.41% from ₹154.411 crore in FY24 to ₹335.577 crore in FY26. This expansion in EBITDA was supported by improving margins as its Emerging and New Hospitals ramped up operations and achieved greater efficiency.
Book Running Lead Managers
The IPO is being managed by a consortium of reputable financial institutions. JM Financial, BofA Securities India, and Nuvama Wealth Management have been appointed as the book running lead managers to the issue.