Paras Healthcare Ltd IPO

About Paras Healthcare Limited IPO

Paras Healthcare Limited IPO is an IPO of TBA. It consists of an offer for sale of 14974010 equity shares and a fresh issue of ₹400 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Paras Healthcare Limited IPO

Prepayment or scheduled re-payment of a portion of certain outstanding borrowings that the company has taken.

To invest in their subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited, in the form of debt or equity for repayment/prepayment of borrowings, in full or part, of these subsidiaries.

General corporate purposes.

Industry Outlook

India's healthcare sector has been experiencing robust growth, driven by factors such as increasing population, rising income levels, and heightened health awareness. The demand for quality healthcare services has surged, particularly in Tier 2 and Tier 3 cities, where access to specialized medical care has historically been limited. This trend presents significant opportunities for healthcare providers to expand their presence in these underserved regions.

Factors such as an ageing population, a growing middle class, increasing incidence of lifestyle diseases, strengthening of physical health infrastructure, and the adoption of technology are some of the key drivers of the growth in the healthcare industry.

The share of treatments (in value terms) by the private players is expected to increase from 64% in fiscal 2019 to nearly ~69% in fiscal 2027.

Company Information

Paras Healthcare is the fifth largest healthcare provider in terms of bed capacity in North India, Bihar, and Jharkhand among their peers, with an aggregate capacity of 2,135 beds, as of March 31, 2024. (Source: CRISIL Report). Paras Healthcare offers several clinical specialties across their hospitals, including cardiac sciences, oncology, neurosciences, gastro sciences, and orthopedics and joint replacement.

They have eight hospitals that we operate under the “Paras Health” brand, which are spread across five states and one union territory in North India—Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur, Uttar Pradesh; Udaipur, Rajasthan; Ranchi, Jharkhand; and Srinagar in the union territory of Jammu and Kashmir.

They have established centres of excellence across their hospitals, where they provide clinical specialties. These centres have been instrumental in launching new programmes including organ transplant programmes.

They derive their revenues from a diversified set of specialties, which has enabled them to grow their business, while reducing concentration risks associated with the industry.

Risks of Paras Healthcare Limited IPO

• All of their hospitals are located in North India, including, the four hospitals which have been operational for over five years and on which they are dependent for a significant portion of their revenues. Consequently, any adverse developments at such hospitals or in the regions where they are located could have an adverse effect on their business, results of operations and financial condition.

• Regulatory reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing including any regulation to provide uniform pricing and discounted pricing for all patients could adversely affect their business, results of - operations and financial condition.

• Delays in receiving payment of outstanding dues from third parties may adversely affect their business and results of operations.

Anchor Investor Information

The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

ICICI Securities Limited IIFL Securities Limited Motilal Oswal Investment Advisors Limited

Registrar for the IPO is Link Intime India Private Limited

Business Model

The company earns its revenue through the following sources:

• The healthcare company has eight hospitals that are operated under the “Paras Health” brand, which are spread across five states and one union territory in North India –Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur, Uttar Pradesh; Udaipur, Rajasthan; Ranchi, Jharkhand; and Srinagar in the union territory of Jammu and Kashmir

• Their focus is on providing specialized tertiary medical care in Tier 2 and 3 cities, while seeking to strike a balance between quality healthcare services and affordability.

• They offer several clinical specialties across their hospitals including cardiac sciences, oncology, neurosciences, gastro sciences and orthopaedics and joint replacement.

• Provide clinical specialties and have established centres of excellence that have been instrumental in launching new programmes including organ transplant programmes.

• They also integrate technology for seamless customer experiences and to address the requirements of other stakeholders.

Company Growth Trajectory

Paras Healthcare Limited has increased their bed capacity from 1,250 beds as of March 31, 2022 to 2,135 beds as of March 31, 2024 and they currently have a committed pipeline of hospital expansion in Gurugram and Ludhiana, which has been approved by their Board of Directors. In Gurugram, they are setting up another hospital through a long-term lease arrangement and they intend to launch this hospital in fiscal 2027 with 300 beds. In Ludhiana, they are also setting up a hospital through a long-term lease arrangement and intend to launch it in fiscal 2028 with up to 500 beds. They expect that these expansion plans would increase their bed capacity from 2,135 as of March 31, 2024 to 2,935 by March 31, 2029.

Company Market Position

They are the fifth largest healthcare provider in terms of bed capacity in North India, Bihar and Jharkhand among their Peers, with an aggregate of 2,135 beds, as of March 31, 2024. (Source: CRISIL Report) They have eight hospitals that they operate under the “Paras Health” brand, which are spread across five states and one union territory in North India–Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur, Uttar Pradesh; Udaipur, Rajasthan; Ranchi, Jharkhand; and Srinagar in the union territory of Jammu and Kashmir

How To Check Allotment Status of Paras Healthcare Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Paras Healthcare Limited Company
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Link Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Paras Healthcare Limited Company from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Paras Healthcare Ltd IPO?

To apply for Paras Healthcare Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.