Paras Healthcare IPO: Rs 400 Cr Fresh Issue, Sebi Filing

New Delhi, Aug 1 (PTI) Paras Healthcare Ltd, which runs hospital chain under the 'Paras Health' brand, has filed draft papers with markets regulator Sebi to mop-up funds through an initial public offering.

The proposed initial public offering (IPO) is a mix of fresh issue of equity shares of up to Rs 400 crore and an offer for sale (OFS) of up to 1.5 crore shares by a promoter and an investor shareholder, according to the draft red herring prospectus (DRHP).

Under the OFS, promoter Dharminder Kumar Nagar will offload 29.28 lakh equity shares and investor Commelina Ltd will divest 1.2 crore shares.

Paras Healthcare proposes to utilise the proceeds from the fresh issue for payment of debt; investment in subsidiaries -- Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited -- in the form of debt or equity for payment of borrowings and for general corporate purposes.

The company runs eight hospitals under the 'Paras Health' brand, which are spread across five states and one union territory -- Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur in Uttar Pradesh; Udaipur in Rajasthan; Ranchi in, Jharkhand and Srinagar in Jammu and Kashmir -- with an aggregate bed capacity of 2,135 beds as of March 2024.

It focuses on providing specialised tertiary medical care in Tier 2 and 3 cities.

Paras Healthcare offers several clinical specialties across hospitals, including cardiac sciences, oncology, neuro sciences, gastro sciences and orthopedics and joint replacement.

ICICI Securities, IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the public issue.