Paras Healthcare files Draft Red Herring Prospectus with SEBI for IPO

New Delhi: Paras Healthcare Limited has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO). 

The public offering consists of a fresh issue of equity shares worth up to ₹400 crore and an offer for sale (OFS) of up to 14,974,010 equity shares by the selling shareholders, with each equity share having a face value of ₹1.

The offer for sale includes 2,928,320 equity shares by Dr Dharminder Kumar Nagar, the promoter selling shareholder, and up to 12,045,690 equity shares by Commelina Ltd, the investor selling shareholder. Together, these constitute the selling shareholders in the offer for sale.

The company intends to use the net proceeds from the IPO for the prepayment or scheduled repayment of certain outstanding borrowings and to invest in its subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited, for repayment or prepayment of their borrowings. Additionally, the funds will be used for general corporate purposes.

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

According to the CRISIL Report, Paras Healthcare operates eight hospitals under the “Paras Health” brand, with a total of 2,135 beds as of March 31, 2024. The hospitals are located across five states and one union territory in North India, including Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur, Uttar Pradesh; Udaipur, Rajasthan; Ranchi, Jharkhand; and Srinagar in Jammu and Kashmir. 

Paras Healthcare is known for delivering specialized tertiary medical care in Tier 2 and Tier 3 cities while maintaining a balance between quality healthcare services and affordability. The hospitals offer various clinical specialties, including cardiac sciences, oncology, neurosciences, gastro sciences, and orthopedics and joint replacement. It is the fifth-largest healthcare provider by bed capacity in North India, Bihar, and Jharkhand.