IPO Details
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About Park Medi World IPO
Park Medi World Limited is launching an IPO with a total offer size of up to ₹1,260 crore, consisting of a ₹960 crore fresh issue and ₹300 crore offer for sale.
Objectives of Park Medi World IPO
- Repayment/ prepayment of certain outstanding borrowings availed
- Funding capital expenditure for development of a new hospital – Park Medicity – and expansion of an existing hospital – Blue Heavens
- Funding capital expenditure for purchase of medical equipment
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
The healthcare delivery industry in India is a vital component of the economy, driven by economic growth, rising incomes, increased health awareness, and technological advancements. In Fiscal 2024, the industry was valued at approximately ₹6.3 trillion. The industry is expected to grow at a CAGR of approximately 10% to 12% in Fiscal 2024.
India's healthcare sector includes medical tourism, healthcare delivery, diagnostics, and pharmaceuticals, catering to a large, diverse population. Hospitals are classified based on service levels-primary, secondary, tertiary, and quaternary care – each addressing varying complexities of healthcare needs. Primary care facilities focus on basic health services and preventive care, while secondary and tertiary centres provide more specialised and advanced treatments.
The rise in lifestyle diseases, the demand for quality healthcare, and government initiatives are further propelling industry growth. In fact, the healthcare delivery market in North India is expected to grow at a much faster pace than other regions between Fiscal 2024 ad Fiscal 2028.
Company Information
Park Medi World Limited is the second largest private hospital chain in North India, with a total bed capacity of 3,000 beds and the largest private hospital presence in Haryana, where it operates 1,600 beds across its network. The company manages 13 NABH-accredited multi-super specialty hospitals under the ‘Park’ brand, with seven also NABL accredited, spanning Haryana, New Delhi, Punjab, and Rajasthan. Park Medi World offers over 30 super specialty and specialty services, supported by a team of 891 doctors and 1,912 nurses as of September 30, 2024.
Founded by Dr. Ajit Gupta, the company has expanded through organic growth and strategic acquisitions, adopting a cluster-based approach for operational efficiency. Acquired hospitals contribute significantly to its financial performance, reflecting strong integration capabilities and a scalable business model focused on delivering high-quality and affordable healthcare services across North India.
Strengths of Park Medi World IPO
Extensive presence and market leadership
- Second largest private hospital chain in North India with a 3,000-bed capacity.
- Largest private hospital chain in Haryana, operating 1,600 beds in the state. -Cluster-based expansion approach ensures operational efficiency and strong local market understanding.
Diverse and accredited hospital network
- Operates 13 NABH-accredited multi-super specialty hospitals, with several being also NABL-accredited.
- Offers more than 30 specialty and super-specialty services across strategically located hospitals in Haryana, Delhi, Punjab, and Rajasthan.
- Equipped with modern facilities and advanced medical equipment to handle a wide spectrum of healthcare needs.
Focus on affordable, quality healthcare
- Delivers high-quality medical services at affordable rates to a broad patient base.
- Strong focus on integrating technology, including robotic surgery systems, to improve patient outcomes.
- Emphasis on offering value-driven care with a skilled team of doctors and nurses, resulting in efficient and quality healthcare delivery.
Risks of Park Medi World IPO
High dependence on medical professionals
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The business is highly dependent on doctors, nurses, medical professionals, and support staff for daily operations and service quality.
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Inability to attract or retain skilled professionals could impact service delivery, patient trust, and operational efficiency.
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Shortages or turnover among key staff could adversely affect hospital functions and financial performance.
Geographic concentration risk
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A significant portion of revenue is derived from hospitals in Haryana, leading to high dependence on this single state.
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Any adverse developments in Haryana, such as regulatory changes or local competition, could disproportionately impact revenue and profits.
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Limited geographic diversification exposes the company to region-specific risks more than pan-India players.
Integration and acquisition challenges
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The company’s growth partially relies on successful integration of acquired hospitals, which may be complex and resource intensive.
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Failure to realise expected synergies or benefits from acquisitions could impact growth and profitability.
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Delays or difficulties in future acquisitions may limit expansion and negatively affect overall business strategy.
Park Medi World IPO Financials
Industry Peer Comparison
| Name of Company | P/E | Total Income (₹ Crore) | EPS Basic (₹) | NAV (₹ per share) |
|---|---|---|---|---|
Park Medi World Ltd | - | 1,263.08 | 3.95 | 21.23 |
Apollo Hospitals Enterprise Limited | 99.46 | 19,165.5 | 62.50 | 481.60 |
Fortis Healthcare Limited | 79.38 | 6,931.2 | 7.93 | 101.50 |
Narayana Hrudalaya Limited | 40.30 | 5,093.4 | 38.86 | 141.03 |
Max Healthcare Institute Limited | 90.53 | 5,584.1 | 10.89 | 86.51 |
Krishna Institute of Medical Sciences Ltd | 66.14 | 2,511.2 | 7.75 | 45.69 |
Global Health Limited | 68.90 | 3,349.8 | 17.80 | 107.77 |
Jupiter Lifeline Hospitals Ltd | 52.10 | 1,095.5 | 28.65 | 178.30 |
Yatharth Hospital & Trauma Care Services | 27.01 | 686.2 | 14.46 | 101.84 |
Registrar: Kfin Technologies Limited
Book Running Lead Managers: Nuvama Wealth Management Limited, CLSA India Private Limited, DAM Capital Advisors Limited, Intensive Fiscal Services Private Limited
Business Model
Park Medi World Limited generates revenue primarily by providing a wide range of healthcare services through its network of multi-super specialty hospitals, including in-patient care, surgeries, diagnostics, and specialised treatments. The company offers over 30 specialty and super-specialty services, which cater to both general and critical healthcare needs, attracting a diverse patient base. Additional income is earned from ancillary services such as diagnostic tests, pharmacy sales, and consultations. Its cluster-based expansion model enables operational efficiency and deeper market penetration, driving sustained patient footfall and repeat business across North India.
Company Growth Trajectory
Park Medi World Limited has demonstrated consistent growth in both EBITDA and revenue from operations over the past three fiscal years. Revenue from operations increased from ₹1,084.38 crore in FY22 to ₹1,254.59 crore in FY23 and reached ₹1,231.06 crore in FY24, showing overall growth, though FY24 saw a slight dip from the previous year. EBITDA has also grown steadily, rising from ₹343.70 crore in FY22 to ₹390.34 crore in FY23, before slightly decreasing to ₹310.30 crore in FY24. The company maintained a strong EBITDA margin, consistently above 25%, indicating efficient cost management and strong profitability.
Park Medi World Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 1,263.08 | 1,272.17 | 1,093.95 |
Profit Before Tax (in ₹ crores) | 218.16 | 315.02 | 278.37 |
Profit After Tax (in ₹ crores) | 152 | 228.18 | 199.38 |
EPS (Basic) | 3.95 | 5.94 | 5.19 |
EBITDA (in ₹ crore) | 310.30 | 390.34 | 343.70 |
Park Medi World Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 218.16 | 315.02 | 278.37 |
Net Cash Flow from Operating Activities (₹ crores) | 366.80 | 198.60 | 155.25 |
Net Cash Flow from Investing Activities (₹ crores) | (76.29) | (233.79) | (248.00) |
Net Cash Flow from Financing Activities (₹ crores) | (129.72) | 1.04 | 162.5 |
Net decrease/increase in Cash and Cash Equivalents (₹ crores) | 160.78 | (34.15) | 69.78 |
Cash and cash equivalents at the end of the year | 277.32 | 116.546 | 150.699 |
How to Check Allotment Status of Park Medi World IPO?
Visit the Registrar's Website
To check the IPO allotment status for Park Medi World Limited IPO, visit the official website of Kfin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'Park Medi World Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search' Your Park Medi World IPO allotment status will be displayed.
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Park Medi World Ltd IPO allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN Then click 'Submit'. Your Park Medi World IPO bid and allotment details will be displayed.
How to Apply for Park Medi World 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.
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.
Park Medi World IPO FAQs
Where can I read more about Park Medi World business?
You can read more about Park Medi World and its IPO from the company’s red herring prospectus (RHP) here.
What is the Park Medi World IPO?
Park Medi World Limited is launching an IPO with a total offer size of up to ₹1,260 crore, consisting of a ₹960 crore fresh issue and ₹300 crore offer for sale.
Is Park Medi World IPO coming?
Yes, Park Medi World Ltd is expected to come up with its IPO soon.
Who is the Chairman of Park Medi World?
Dr. Ajit Gupta is the Chairman of Park Medi World Ltd
What is the lot size of shares of Park Medi World IPO?
The company hasn’t given any information on the lot size yet.
