Paras Healthcare Limited files DRHP with SEBI for an IPO

Paras Healthcare Limited (“the Company”) the fifth largest healthcare provider in terms of bed capacity in North India, Bihar and Jharkhand (Source: CRISIL Report) has filed Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO).

Paras Healthcare Limited is the fifth largest healthcare provider in terms of bed capacity in North India, Bihar and Jharkhand among the Peers, with an aggregate of 2,135 beds, as of March 31, 2024. (Source: CRISIL Report). It operates eight hospitals under the “Paras Health” brand, which are spread across five states and one union territory in North India – Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur, Uttar Pradesh; Udaipur, Rajasthan; Ranchi, Jharkhand and Srinagar in the union territory of Jammu and Kashmir. Paras Healthcare focuses on providing specialized tertiary medical care in Tier 2 and 3 cities, while seeking to strike a balance between providing quality healthcare services and affordability. Paras Healthcare offers several clinical specialties across hospitals including cardiac sciences, oncology, neuro sciences, gastro sciences and orthopedics and joint replacement.

The Public Offer comprises of a fresh issue of equity shares of up to ₹400 crores and an offer for sale (OFS) of up to 14,974,010 equity shares by the “Selling Shareholder” (The “Offer for Sale”) with face value of ₹1 each equity share.

The offer for sale comprises of 2,928,320 Equity shares of face value of ₹ 1 each by Dr. Dharminder Kumar Nagar (The “Promoter Selling Shareholder”) and up to 12,045,690 Equity shares of face value of ₹ 1 each by Commelina Ltd (The “Investor Selling Shareholder” and together with the Promoter Selling shareholder the “Selling Shareholders”) (Such offer for sale of equity shares of face value of ₹ 1 each by the Selling Shareholders the “Offer for Sale”)

Paras Healthcare Limited proposes to utilize the Net Proceeds towards (i) Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the Company; (ii) Investment in Subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited, in the form of debt or equity for repayment/prepayment of borrowings, in full or part, of such Subsidiaries and (iii) General corporate purposes.

ICICI Securities Limited, IIFL Securities Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the issue.