Paras Healthcare runs a clinical-speciality hospital chain under the "Paras Health" brand in North India, Bihar and Jharkhand: 8 hospitals with 2,211 beds in Gurugram, Panchkula, Patna, Darbhanga, Kanpur, Udaipur, Ranchi and Srinagar. Cardiac, oncology, neuro, gastro, ortho and renal specialities made up about 75% of FY26 revenue. The company plans to reach 3,011 beds by March 2028, including a 300-bed hospital in Gurugram and a 500-bed hospital in Ludhiana.

The ₹1,450 crore issue combines a ₹500 crore fresh issue (72.15 lakh shares) with a ₹950 crore offer for sale: Commelina Ltd sells ₹650 crore and promoter Dr Dharminder Kumar Nagar ₹300 crore. Because the company does not meet SEBI's profitability test, QIBs get up to 75% of the issue and retail investors only 10%. The anchor book opens on 19 October 2026.

Objects of the issue

  • ₹320.90 crore to repay company borrowings
  • ₹54.10 crore into subsidiary PMHPL (Srinagar) to repay its debt
  • General corporate purposes
  • Offer-for-sale proceeds go to the selling shareholders, not the company

Key numbers

  • Market cap at upper band: ₹7,498 crore
  • Valuation: about 160x FY26 earnings (pre-issue); about 37.7x Q1 FY27 earnings annualised
  • FY26: revenue up about 24%, EBITDA ₹335.58 crore (more than double FY25's ₹156.46 crore)
  • Borrowings: ₹1,393.86 crore at March 2026, ₹1,429.49 crore at June 2026; debt-to-equity about 3.5x
  • Promoter and group holding: 72.8% pre-issue (falls after the OFS and fresh issue)
  • Listed peers (P/E, June 2026): Apollo Hospitals 60x, Fortis 67.3x, Aster DM 95.9x

Strengths

  • Turnaround: losses in FY24 and FY25, then a ₹43.83 crore profit in FY26 and ₹49.68 crore in Q1 FY27 alone
  • Fresh money cuts debt, lowering interest costs, with a visible bed-expansion pipeline
  • Focus on under-served tier-2 markets (Bihar, Jharkhand, J&K) with a high-acuity specialty mix

Risks

  • High leverage, and two-thirds of the issue is an offer for sale by a PE investor and the promoter
  • Expensive on reported earnings; the lower P/E relies on one strong quarter holding all year
  • New hospitals take years to mature, so expansion carries execution risk
  • Only 10% of the issue is reserved for retail investors

Financials are restated consolidated figures in ₹ crore; "Revenue" is total income. Sources differ on borrowings: the RHP-based figures above (₹1,393.86 crore for FY26) are higher than the SEBI abridged DRHP (₹854.10 crore), most likely because one includes lease liabilities. Grey market premium is unofficial and changes quickly.