Paras Healthcare, the hospital chain founded by Dr Dharminder Kumar Nagar, has raised Rs 652.5 cr from anchor investors ahead of its Rs 1,450 cr IPO, which opens for public subscription on October 21, 2026.
The Gurugram based healthcare provider secured participation from global institutional investors, including the Abu Dhabi Investment Authority, BlackRock Global Funds, Eastspring Investments and Norway's Government Pension Fund Global. The anchor allocation also included Natixis International Funds, Integrated Core Strategies (Asia) and Citigroup Global.
The IPO will remain open until October 23, with a price band of Rs 660-Rs 693 per share. The fundraising marks an important step in Paras Healthcare's expansion plans as it looks to increase hospital capacity and strengthen its presence in North India and eastern India.
Paras Healthcare IPO: Issue Size and Share Sale Details
The Rs 1,450 crore IPO comprises a fresh issue of shares worth Rs 500 cr and an offer for sale (OFS) of Rs 950 cr.
Under the OFS, founder and promoter Dr Dharminder Kumar Nagar will sell shares worth Rs 300 crore, while Commelina, an affiliate of private equity firm Creador, will sell shares worth Rs 650 crore. Unlike the fresh issue, proceeds from the OFS will go to the selling shareholders.
Paras Healthcare allotted 94.15 lakh shares to 21 institutional investors through the anchor book. Of these, nine domestic mutual funds received 55.55 lakh shares worth Rs 385 crore through 24 schemes, according to the company's filing.
Participating mutual funds included SBI Mutual Fund, HDFC AMC, ICICI Prudential AMC, Kotak Mahindra AMC, WhiteOak Capital, Motilal Oswal AMC, Edelweiss, Baroda BNP Paribas Mutual Fund and ITI Mutual Fund.
Insurance companies, including ICICI Prudential Life Insurance, Edelweiss Life Insurance and Canara HSBC Life Insurance, were allocated shares worth Rs 45 crore.
Hospital Expansion to Take Bed Capacity to 3,011
Paras Healthcare operates eight hospitals with a combined capacity of 2,211 beds, providing tertiary and quaternary healthcare services across North India, Bihar and Jharkhand.
The company plans to add a 300 bed hospital in Gurugram and a 500 bed facility in Ludhiana. The two projects are expected to become operational in FY27 and FY28, respectively. According to its red herring prospectus, Paras Healthcare aims to increase its total bed capacity to 3,011 by March 2028.
The expansion reflects a broader strategy to increase hospital capacity in markets where specialised healthcare services can support long term growth. However, new hospitals also require substantial spending on infrastructure, equipment, medical professionals and operations before they reach mature utilisation levels.
How Paras Healthcare Plans to Use IPO Proceeds
The company intends to use Rs 375 crore from the net proceeds of the fresh issue to repay part of its debt. The remaining proceeds will be allocated to general corporate purposes.
Reducing borrowings could help ease interest costs, while the planned hospital additions provide room for future revenue growth. The outcome will depend on how quickly the new facilities attract patients and build operational efficiency.
For investors, the key factors to watch will be hospital occupancy, revenue growth, debt levels and the time required for new facilities to become financially sustainable. The anchor allocation demonstrates institutional participation, but it does not guarantee strong demand from public investors or listing gains.
JM Financial, BofA Securities India and Nuvama Wealth Management are acting as merchant bankers to the issue.
The Unicorn Magazine:- Editing by Deepak Singh
