Paras Healthcare IPO

Paras Healthcare IPO: Overview

Paras Healthcare Limited, which runs hospitals under the "Paras Health" brand across North India, Bihar and Jharkhand, has launched its initial public offering. The issue opens on 21 October 2026 and closes on 23 October 2026, at a price band of ₹660 to ₹693 per share.

The IPO is a combination of a fresh issue and an offer for sale (OFS), together worth up to ₹1,450 crore. Most of the issue is an OFS, so a large part of the money goes to selling shareholders and not to the company.

Paras Healthcare IPO: Key Details

Allotment and listing dates are tentative and can change.

Lot Size and Investment Amount

Reservation

Objects of the Issue

The company will use the net proceeds from the fresh issue for:

1. Full or partial repayment or prepayment of certain borrowings of the company.
2. Investment in its wholly owned subsidiary, PMHPL, which operates the Srinagar hospital, to repay or prepay that subsidiary's borrowings.
3. General corporate purposes.

The company will not receive the proceeds of the OFS. They go to the selling shareholders.

About Paras Healthcare

Paras Healthcare operates a network of multi-speciality hospitals focused on tertiary and quaternary care. Its key specialities include cardiology, neurology, orthopaedics, oncology and mother-and-child care.

• Network: 8 hospitals with 2,211 beds across North India, Bihar and Jharkhand
• Locations: Gurugram, Panchkula, Patna, Darbhanga, Kanpur, Udaipur, Ranchi and Srinagar
• Medical team: 1,084 doctors and 1,937 nurses as of 30 June 2026
• Expansion plan: about 3,011 beds by March 2028, an addition of roughly 800 beds
• Focus markets: North and East India, where organised tertiary care is less developed than in the south

Financial Performance

Highlights:

• Revenue grew about 24% in FY26.
• EBITDA more than doubled in FY26, and margin improved from about 12% to about 21%.
• The company moved from a loss of ₹57.98 crore in FY25 to a profit of ₹43.83 crore in FY26.
• Q1 FY27 PAT of ₹49.68 crore is already higher than the full-year FY26 figure. Quarterly numbers can be seasonal, so avoid simply multiplying by four.

EBITDA margins are calculated from the reported figures.

Valuation

The sources I reviewed did not give a valuation, market capitalisation, P/E or EV/EBITDA at the price band. Because the company was loss-making in FY25 and only recently turned profitable, earnings multiples may look high or not be meaningful. Compare the valuation with listed hospital companies on EV/EBITDA, EBITDA per bed and occupancy, and check the net debt position in the RHP.

Strengths

• Strong operating turnaround. EBITDA margin rose to about 21% in FY26, and profitability improved sharply.
• Presence in underserved regions. North and East India have less organised tertiary care capacity than southern India.
• Specialty focus. The network is built around high-acuity specialities such as cardiology, neurology, orthopaedics and oncology.
• Expansion pipeline. The plan to add about 800 beds by March 2028 gives a visible growth path.
• Debt reduction. Part of the fresh issue proceeds will be used to repay borrowings.
• Established clinical base. 1,084 doctors and 1,937 nurses support its operations.

Risks

• OFS-heavy issue. About ₹950 crore of the ₹1,450 crore issue is an OFS, so only about a third of the issue goes to the company.
• Debt. The use of proceeds for repayment suggests meaningful borrowings. Check the debt and interest cost in the RHP.
• Recent profitability. The company posted a loss in FY25, so the track record of profits is short.
• Regional concentration. Operations are concentrated in North and East India.
• Expansion risk. New beds can take time to ramp up and may weigh on margins and returns in the near term.
• Doctor dependence. Hospitals rely on attracting and retaining specialists.
• Regulatory and pricing risk. Healthcare is subject to regulation, insurance and government scheme pricing, and clinical risk.
• Earlier IPO attempt. The company filed a draft prospectus in 2024 and did not launch, and this is its second attempt. Some reports mention this as a point of execution risk.

How to Apply for the IPO ?

• Login or Open demat account with JM Financial Services / JM PRO app: Open the JM PRO app or JM Financial Services website and log in with your credentials. 
• Locate the IPO Section: Navigate to the 'IPO' section on the platform. 
• Select IPO: Find and select the IPO from the list of open IPOs. 
• Enter the Lot Size: Specify the number of lots you want to bid for. 
• Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application. 
• Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN. 

How to Check the Allotment Status of the IPO?

Steps to check IPO allotment status on JM Pro app: 

• Log in to the JM Pro app. 
• Go to the IPO Section and then to IPO Orders. 
• Select the individual IPO that you had applied for and check the allotment status. 

JM Financial Services will notify you of your IPO allotment status via push notification and email