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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.
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.
Detail | Information |
---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | 14974010 equity shares |
Fresh Issue | ₹ 400 crores |
EPS (₹) | (1.57) (FY 24) |
Paras Healthcare Limited IPO Share offer and Subscription Details
Investor Category | Shares Offered |
---|---|
QIB Shares Offered | At least 75% of the Net Issue |
Retail Shares Offered | Not more than 10% of the Net Issue |
NIBs Shares Offered | Not more than 15% of the Net Issue |
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.
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.
Paras Healthcare Limited is one of the largest healthcare providers in the underserved markets of North India with a first-mover advantage.
They are 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. 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. They have gradually expanded their presence in underserved markets and increased the number of beds from 200 beds as of June 2006 to 2,135 beds as of March 31, 2024.
Delivering quality clinical care by attracting and retaining renowned clinicians.
As of March 31, 2024, they had a team of 1,091 doctors and 1,509 nurses. As of the same date, 44.12% of their doctors across their hospitals (excluding Srinagar and Kanpur which commenced operations in 2023 and 2024, respectively) have been associated with them for more than seven years. As of the same date, 44.12% of the doctors across the hospitals (excluding Srinagar and Kanpur, which commenced operations in 2023 and 2024) have been associated with them for more than seven years. The skilled clinicians at their hospitals, who are experienced, have been well recognized in their fields and have won several awards and accolades.
Diversified operations across clinical specialties, payor mix and hospitals.
They offer a wide range of specialties across their hospitals, providing comprehensive medical treatments and serve as a one-stop solution for the healthcare requirements of their patients. Their key departments include cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics including joint replacements and renal sciences and their revenues from these six specialties accounted for 72.34%, 70.94% and 66.06% of their revenue from operations for fiscals 2024, 2023 and 2022, respectively.
Robust operating infrastructure across their hospitals including information technology and modern equipment.
They have established a robust information technology infrastructure to enhance the quality and affordability of their services and reach more people in need of healthcare.
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.
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Parameter | Paras Healthcare | Apollo Hospitals Enterprise Limited | Fortis Healthcare |
---|---|---|---|
Revenue from Operations for Fiscal 2024 (₹ in crores) | 1129.039 | 19059.200 | 6892.920 |
P/E | - | 106.62 (highest) | 64.29 |
EPS (Basic) | (1.57) | 62.50 | 7.93 |
Return on Net Worth (%) | (8.63) | 16.11 | 17.27 |
NAV per share | 3.468 | 42.92 | 5.230 |
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
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.
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.
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
Parameter | FY22 | FY23 | FY24 |
---|---|---|---|
Total Income (₹ crores) | 793.172 | 936.053 | 1151.023 |
Net profit / (loss) before tax (₹ crores) | 3.051 | (27.053) | 6.630 |
Net Profit (₹ crores) | (14.808) | (42.791) | (15.331) |
EBITDA (₹ crores) | 82.652 | 87.614 | 154.411 |
EPS (₹) | (0.201) | (5.82) | (0.157) |
Parameter | FY22 | FY23 | FY24 |
---|---|---|---|
Profit before tax (crores) | 3.051 | (270.53) | 6.630 |
Net Cash from Operating Activities (₹ crores) | 82.378 | 43.684 | 92.477 |
Net Cash from Investing Activities (₹ crores) | (129.070) | (126.209) | (194.055) |
Net Cash from Financing Activities (₹ crores) | (10.604) | 97.469 | 93.978 |
Cash and Cash Equivalents (₹ crores) | 15.458 | 23.058 | 7.670 |
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:
Follow these steps to know the allotment status on the registrar’s website:
To apply for Paras Healthcare Ltd IPO:
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
The Paras Healthcare Limited Company IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Link Intime India Private Limited is the registrar for this IPO.
You may read more about Paras Healthcare Ltd Company and its IPO from the company’s red herring prospectus (RHP) here