Hospital chain Paras Healthcares’ Rs.1,450-Cr IPO subscribed 1.72 times

The initial public offering (IPO) of Gurugram-based hospital chain operator Paras Healthcare has received 1.72 times subscription. The IPO received bids for 2,07,51,507 shares against 1,20,83,331 shares on offer. Qualified institutional buyers (QIBs) led the demand with 2.22 times subscription, while the retail category was subscribed 1.86 times. The price band of the issue is fixed at INR 660-693 per share.The INR 1,450 crore public issue consists of a fresh issue of shares worth INR 500 crore and an offer for sale (OFS) of INR 950 crore. Under the OFS component, promoter Dharminder Kumar Nagar is offloading shares worth INR 300 crore, while Commelina, an affiliate of the private equity firm Creador, is selling shares worth INR 650 crore. Merchant bankers to the issue included JM Financial, BofA Securities India, and Nuvama Wealth Management.Paras Healthcare operates a network of eight hospitals providing tertiary and quaternary healthcare services, with a combined capacity of 2,211 beds across North India, Bihar, and Jharkhand. The company intends to use INR 375 crore from the fresh issue proceeds to repay a portion of its outstanding debt, with the remainder allocated for general corporate purposes. The firm also plans to expand its capacity by adding a 300-bed hospital in Gurugram and a 500-bed facility in Ludhiana.Prior to the IPO, Paras Healthcare raised INR 652.5 crore through an anchor book, allotting shares to 21 institutional investors, including the Abu Dhabi Investment Authority, BlackRock Global Funds, Eastspring Investments, Government Pension Fund Global, Natixis International Funds, Integrated Core Strategies (Asia), and Citigroup Global.