Paras Healthcare Files DRHP with SEBI to Raise ₹1,800 Crore through Public Issue

Paras Healthcare Files Draft Red Herring Prospectus for ₹1,800 Crore IPO

Paras Healthcare, a clinical specialty-led hospital platform focused on tertiary and quaternary healthcare services, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth up to ₹1,800 crore. The company operates under the "Paras Health" brand and has a network of eight hospitals with an aggregate capacity of 2,211 beds as of March 31, 2026.

The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹500 crore and an offer for sale (OFS) of shares worth up to ₹1,300 crore by the selling shareholder, taking the total issue size to up to ₹1,800 crore. Each equity share carries a face value of Re 1. The price band for the issue is yet to be announced. The company plans to utilise the net proceeds from the fresh issue towards the prepayment or scheduled repayment of certain outstanding borrowings.

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The equity shares proposed under the IPO are expected to be listed on both the BSE and NSE. JM Financial, BofA Securities India, and Nuvama Wealth Management have been appointed as the book-running lead managers to the issue.

Paras Healthcare has outlined an ambitious expansion roadmap as it seeks to strengthen its position in India's healthcare sector. The company plans to add a 300-bed hospital in Gurugram by FY27 and a 500-bed hospital in Ludhiana by FY28. These additions are expected to increase its total bed capacity to 3,011 beds by March 31, 2028.

The company has delivered strong financial growth over the last three fiscal years, supported by rising patient volumes across its hospital network. Revenue from operations grew at a compound annual growth rate (CAGR) of 19.26%, increasing from ₹1,129.039 crore in FY24 to ₹1,605.952 crore in FY26. The growth was driven by higher occupied bed days and an increase in average revenue per occupied bed (ARPOB) at its mature hospitals, reflecting the company's focus on high-acuity specialties and clinical programmes.

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The company's profitability has expanded at an even faster pace. EBITDA rose at a CAGR of 47.41%, climbing from ₹154.411 crore in FY24 to ₹335.577 crore in FY26. EBITDA margins also improved as emerging and newly established hospitals scaled up operations and began generating operating leverage.

The company's revenue from operations increased at a CAGR of 19.26% between FY24 and FY26, while EBITDA grew at a CAGR of 47.41%, supported by higher patient volumes, improving ARPOB and operating leverage from emerging and new hospitals.