Paras Healthcare IPO Upcoming
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About Paras Healthcare
Paras Health is the fifth largest healthcare provider by bed capacity in North India, Bihar, and Jharkhand, with 2,135 beds across eight hospitals as of March 31, 2024. Focused on providing specialized tertiary care in Tier 2 and 3 cities, Paras Health offers clinical specialties like cardiac sciences, oncology, and orthopedics. With 18 years of experience, the company has an asset-light business model, successfully expanding into underserved markets. It has plans to increase bed capacity to 2,935 by 2029 through new hospitals in Gurugram and Ludhiana. Paras Health also invests in digital healthcare solutions.
Financials of Paras Healthcare
Issue size
| Funds Raised in the IPO | Amount |
| Fresh Issue | ₹400 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Payment of outstanding borrowings | 21.79 |
| Investment in subsidiaries | 8.20 |
Strengths
- One of the largest healthcare providers in underserved markets of North India, with a first-mover advantage in key regions.
- Asset-light business model focused on driving patient access and operational performance.
- Strong ability to attract and retain renowned clinicians, delivering high-quality clinical care.
- Diversified operations across multiple clinical specialties, payor mix, and geographic locations.
- Robust infrastructure with advanced information technology systems and modern medical equipment.
- Doctor-led professional management team with proven execution capabilities and deep industry expertise.
Risks
- Incurred significant losses in recent years with no guarantee of future profitability.
- Reliant on attracting and retaining skilled healthcare professionals to maintain operations.
- Regulatory changes and pharmaceutical pricing uncertainties could harm financial performance.
- Dependence on in-patient revenue and occupancy rates affects profitability.
- Non-exclusive doctor arrangements risk disruption if key doctors leave.
- Non-compliance with regulations could severely impact business and finances.