Park Medi IPO: Rs 276 Cr from Anchor Investors

New Delhi, Dec 9 (PTI) Park Medi World, which operates a hospital chain under the Park brand, on Tuesday said it has collected Rs 276 crore from anchor investors, ahead of its initial share sale.

Major allocations went to funds including Kotak Mutual Fund (MF), Allianz Global Investors Fund, Taurus MF, Reliance General Insurance Company and Societe Generale, according to a circular uploaded on BSE's website.

As per the circular, Park Medi has allocated over 1.70 crore equity shares to 23 funds for Rs 162 per share.

Park Medi World's Rs 920-crore maiden public offering will open for subscription on December 10 and conclude on December 12. The company has fixed a price band of Rs 154 to Rs 162 per share for its IPO, valuing the hospital chain at roughly Rs 7,000 crore.

The IPO is a combination of fresh issue of shares worth Rs 770 crore and an offer for sale (OFS) of shares valued at Rs 150 crore by promoter Ajit Gupta.

The company plans to use the proceeds worth Rs 380 crore for payment of debt, and Rs 60.5 crore will be allocated for funding capital expenditure related to the development of a new hospital and the expansion of an existing hospital by its subsidiaries, Park Medicity (NCR) and Blue Heavens, respectively.

A further Rs 27.45 crore is earmarked for the purchase of medical equipment by the company and its subsidiaries, Blue Heavens and Ratangiri.

The remaining funds will be used for unidentified inorganic acquisitions and general corporate purposes.

The hospital chain will make its stock market debut on December 17.

Park Medi World is the second largest private hospital chain in North India with an aggregate bed capacity of 3,000 beds, and the largest private hospital chain in terms of bed capacity in Haryana with 1,600 beds located in the state as of March 2025, according to a Crisil report.

Its network of hospitals comprises 13 multi-super specialty hospitals with eight hospitals in Haryana, one hospital in New Delhi, three hospitals in Punjab and two hospitals in Rajasthan. The company has expanded its total bed capacity from 2,550 beds as of March 31, 2023, to 3,250 beds as of September 30, 2025. It is further strengthening its network through a robust expansion pipeline across Ambala, Panchkula, Rohtak, New Delhi, Gorakhpur and Kanpur, according to the red herring prospectus (RHP).

In Ambala, the company has acquired a land adjacent to its existing hospital and is undertaking an expansion that will increase capacity from 250 beds to 450 beds, along with the addition of an onco-radiation facility. This project is expected to be completed by October 2027.

In Panchkula, construction is underway for a new 300-bed multi super-specialty hospital, scheduled to become operational by April 2026.

Meanwhile, in Rohtak, the company is developing a 250-bed hospital, which is expected to be ready for operations by December 2026.

Nuvama Wealth Management, CLSA India, DAM Capital Advisors and Intensive Fiscal Services are the book-running lead managers to the public issue.