Park Medi World IPO

The healthcare sector in India continues to witness robust growth, and Park Medi World IPO has emerged as one of the most anticipated mainboard public offerings in December 2025. As the second-largest private hospital chain in North India, Park Medi World Limited is opening its doors to retail and institutional investors with a ₹920 crore initial public offering. This comprehensive guide provides an in-depth analysis of the Park Medi World IPO, covering everything from financial performance to valuation metrics, helping you make an informed investment decision.

IPO Structure & Pricing – Understanding the Offer Size

Issue Composition & Break-up

Park Medi World IPO is structured as a combination offer comprising both fresh equity issuance and an offer for sale by the promoter. The total issue size has been carefully calibrated at ₹920 crores, which represents a strategic balance between growth capital requirements and promoter stake dilution.

IPO Structure Details:

Key Pricing Information:

• Face Value: ₹2 per equity share
• Price Band: ₹154 to ₹162 per share
• Price Band Range: ₹8 (5.19% difference)
• Minimum Bid Price: ₹154 per share
• Maximum Bid Price: ₹162 per share

Understanding Fresh Issue vs Offer for Sale

Fresh Issue (₹770 Crores): The company will receive the entire proceeds from the fresh issue of 4.75 crore shares. This capital will be deployed for debt reduction, hospital expansion, medical equipment procurement, and general corporate purposes. Fresh issue increases the total share capital of the company.

Offer for Sale (₹150 Crores): Promoter Dr. Ajit Gupta is offloading 92.59 lakh shares worth approximately ₹150 crores. The proceeds from OFS will go directly to the selling promoter and not to the company. This provides partial exit opportunity to the promoter while maintaining majority control.

Pre-IPO and Post-IPO Share Capital

Important Note: The company had initially filed DRHP for a much larger issue size of ₹12,600 crores. However, considering market conditions and optimal capital structure, the final issue size was revised to ₹920 crores, demonstrating prudent capital planning by the management.

IPO Timeline – Important Dates for Investors

Complete Schedule (Tentative)

Timing is crucial in IPO investments. Here’s the complete timeline for Park Medi World IPO:

Critical Deadlines for UPI Investors

UPI Mandate Confirmation Deadline: 5:00 PM on Friday, December 12, 2025

Retail investors applying through UPI mechanism must approve their UPI mandate before the cut-off time. Failure to confirm the mandate will result in application rejection. Set reminders and check your UPI app regularly during the bidding period.

Timeline for Different Investor Categories

For Anchor Investors:

• Anchor bidding (if applicable): One day before issue opening
• Lock-in period: 90 days from listing date

For Retail & HNI Investors:

• Bidding window: 3 working days (Dec 10-12, 2025)
• Multiple bids allowed: Yes (but only highest bid considered)
• Modification allowed: Until issue closing

Lot Size & Investment Requirements – How Much to Invest?

Application Lot Size Structure

The lot size is a critical factor that determines your minimum investment amount. Park Medi World has set the lot size at 92 shares, making it accessible to retail investors.

Retail Individual Investors (RII) – Investment Ladder:

High Net-Worth Individuals (HNI) – Investment Requirements:

Strategic Investment Planning

For Conservative Investors: Apply for 1-2 lots (₹14,904 to ₹29,808) to test the waters while maintaining portfolio diversification.

For Moderate Risk-Takers: Consider 5-7 lots (₹74,520 to ₹1,04,328) to gain meaningful exposure to the healthcare sector.

For Aggressive Investors: Maximum retail application of 13 lots (₹1,93,752) to maximize allotment chances in a potentially oversubscribed issue.

Pro Tip: In oversubscribed retail categories, applying for maximum lots increases your probability of getting at least minimum allotment due to proportionate allocation methodology.

Share Reservation – Quota-wise Allocation

Category-wise Reservation Structure

SEBI mandates specific reservation quotas for different investor categories to ensure fair distribution and broad-based participation.

QIB Category Breakdown (50% of Total Issue)

The QIB portion is further divided to ensure participation from anchor investors and mutual funds:

Anchor Investor Portion:

• Up to 60% of QIB quota can be allocated to anchor investors
• Minimum allocation: One-third reserved for domestic mutual funds
• Lock-in: 90 days from listing date

Mutual Fund Portion:

• 5% of Net QIB portion reserved exclusively for mutual funds
• If undersubscribed, added back to general QIB pool

Balance QIB Portion:

• Available to all QIBs including insurance companies, foreign portfolio investors, pension funds, and banks

NII Sub-Categories (15% of Total Issue)

The NII portion is divided into two sub-categories:

Flexibility Clause: If any sub-category is undersubscribed, unallocated shares can be moved to the other NII sub-category.

H3: Retail Investor Category (35% of Total Issue)

Eligibility Criteria:

• Application size: Up to ₹2 lakhs
• Individual investors only (not applicable to HUF, companies, or trusts)
• Guaranteed minimum allotment: 1 lot (if applied for 1 lot and category not oversubscribed beyond 1x)

Allotment Priority:

1. If undersubscribed: All applicants get full allotment
2. If oversubscribed up to 1x: All get minimum lot
3. If heavily oversubscribed: Proportionate allotment with lottery system

Company Overview – Understanding Park Medi World Limited

Corporate Background & Evolution

Park Medi World Limited was incorporated on January 20, 2011, in New Delhi as a private limited company. The company converted to a public limited entity on December 20, 2024, in preparation for this IPO. With over 14 years of operational excellence, the company has established itself as a formidable player in North India’s healthcare landscape.

Corporate Identification Details:

• CIN: U85110DL2011PLC212901
• Registered Office: 12, Meera Enclave, Near Keshopur Bus Depot, Outer Ring Road, New Delhi 110018
• Corporate Office: Park Tower, Plot No. 521, Udyog Vihar Phase 3, Gurugram 122022, Haryana

Business Model & Operations

Park Medi World operates on a multi-specialty tertiary care hospital model with strategic presence across high-growth North Indian markets. The company’s business model encompasses:

Revenue Streams:

1. In-Patient Department (IPD): Primary revenue driver with 60-70% contribution
2. Out-Patient Department (OPD): Regular consultations and diagnostics
3. Emergency Services: 24/7 trauma and critical care
4. Surgical Procedures: Planned and emergency surgeries
5. Diagnostics & Imaging: In-house pathology and radiology services

Geographical Footprint (14 Hospitals):

Market Position & Competitive Ranking

Industry Standing:

• #2 Position: Second-largest private hospital chain in North India by bed capacity
• #1 in Haryana: Largest private hospital chain in Haryana state with 1,600 beds
• Total Bed Capacity: 3,000+ beds as of March 31, 2025
• Market Share: Significant presence in Tier-II and Tier-III cities

Quality Accreditations:

• NABH Accreditation: All 14 hospitals are NABH accredited
• NABL Accreditation: 8 hospitals have NABL accreditation for diagnostic laboratories
• Government Empanelment: Empaneled under CGHS, Ayushman Bharat, and various state health schemes

Infrastructure & Facilities

As of September 30, 2025:

Human Resources – Medical Talent Pool

As of September 30, 2025:

• Doctors: 1,014 (mix of full-time and consultants)
• Nurses: 2,142
• Paramedical Staff: 800+
• Administrative Staff: 500+
• Total Workforce: 4,500+ employees

Specialization Mix:

• Super-specialty doctors: 60%
• Specialty doctors: 30%
• General practitioners: 10%

Product Portfolio – Comprehensive Healthcare Services

Specialty & Super-Specialty Services (30+ Departments)

Park Medi World offers comprehensive medical services across multiple specialties, positioning itself as a one-stop healthcare destination.

Key Revenue-Generating Specialties:

Top 7 Specialties Contribution: These departments collectively contribute 92.17% to 92.87% of total revenue, demonstrating strong specialty mix with concentration risk.

Supporting Services & Diagnostics

Diagnostic Capabilities:

1. Pathology Services: Comprehensive blood testing, histopathology
2. Radiology Imaging: X-Ray, CT Scan, MRI, Ultrasound, Mammography
3. Cardiac Diagnostics: ECG, Echo, TMT, Holter monitoring
4. Advanced Imaging: 3D/4D ultrasound, digital X-rays

Emergency & Critical Care:

• Emergency Medicine: 24/7 trauma care with dedicated emergency physicians
• Critical Care Units: Multi-organ support, ventilators, ECMO facilities
• Neonatal ICU: Level III NICU for premature babies
• Cardiac ICU: Post-cardiac surgery monitoring

Payor Mix – Revenue Sources

Park Medi World has a diversified payor mix reducing dependence on any single payment source:

Payment Source Distribution (Approximate):

Financial Performance Analysis – Consolidated Numbers

Revenue & Profitability Trends (FY 2022-23 to H1 FY 2025-26)

Comprehensive Financial Performance Table:

FY 2024-25 vs FY 2023-24 Comparative Analysis

Growth Performance:

Key Observations:

1. Revenue Growth (12.5%): Moderate top-line growth driven by:
   • Increase in bed occupancy rates
   • Better payor mix with higher proportion of cash patients
   • New specialty additions in existing hospitals
   • Full-year contribution from recently acquired hospitals
2. EBITDA Surge (19.94%): Operating profit grew faster than revenue due to:
   • Operating leverage: Fixed costs spread over higher revenue base
   • Improved pricing power: Better realization per patient
   • Operational efficiencies: Reduction in wastage and optimized supply chain
3. PAT Explosion (40.27%): Bottom-line growth significantly outpaced top-line because of:
   • EBITDA margin expansion
   • Lower interest costs due to debt reduction
   • Tax optimization strategies
   • One-time gains excluded from normalized analysis

Margin Analysis – Profitability Trends

Margin Expansion Drivers:

• Operating Leverage: As hospitals mature, fixed costs become proportionally smaller
• Specialty Mix: Higher contribution from high-margin specialties like cardiology and neurology
• Occupancy Rates: Improved bed utilization across network
• Cost Management: Stringent control over employee costs and consumables

Asset & Liability Position

Balance Sheet Strength (As of March 31, 2025):

• Total Assets: ₹2,133.70 crores (11.58% YoY growth)
• Net Worth: ₹1,021.86 crores (25.23% YoY growth)
• Debt: ₹682.07 crores (reduction from ₹686.71 crores)
• Working Capital: Positive and improving

Asset Composition:

• Fixed Assets (PP&E): 60-65% (hospitals, equipment)
• Current Assets: 30-35% (receivables, cash)
• Intangible Assets: 2-3% (goodwill from acquisitions)
• Investments: 1-2%

Key Financial Ratios – Performance Benchmarks

Profitability Ratios (As of March 31, 2025)

Leverage & Solvency Ratios

Debt Reduction Strategy: Post-IPO, the company plans to reduce debt by ₹380 crores, which will:

• Improve debt-to-equity ratio to ~0.30-0.35
• Reduce interest burden by ₹30-35 crores annually
• Enhance credit profile for future borrowings
• Improve cash flow from operations

Efficiency Ratios

Per Share Metrics

Note: Post-IPO EPS is calculated based on annualized H1 FY26 earnings and increased share capital.

Valuation Metrics – Is It Fairly Priced?

Price-to-Earnings (P/E) Analysis

Peer Comparison – Hospital Sector Valuation

Valuation Assessment:

✅ Positives:

• 30-40% discount to large-cap peers: Trading at P/E of 29x vs sector average of 45-50x
• Attractive EV/EBITDA: At 18-20x, significantly lower than peers at 26-30x
• Reasonable P/B: At 6.09x, aligned with mid-cap hospital chains
• Growth trajectory: 40% PAT growth provides valuation comfort

⚠️ Concerns:

• Regional concentration: 75% revenue from Haryana limits geographical diversification
• Scale disadvantage: Smaller than established players with lesser bargaining power
• Tier-II/III focus: Lower pricing power compared to metro-focused chains
• Subscription risk: Valuation appears fully priced at upper band

Price-to-Book Value Analysis

Interpretation: The P/B ratio of 6.09x is aligned with sector standards, suggesting the issue is reasonably priced from a book value perspective. Hospital businesses typically trade at higher P/B multiples due to intangible factors like brand, doctor relationships, and empanelments.

Discounted Cash Flow (DCF) Perspective

While detailed DCF analysis requires granular assumptions, a simplified view suggests:

Fair Value Range (Conservative):

• Base Case: ₹145-155 per share (assuming 15% growth CAGR, 12% discount rate)
• Bull Case: ₹170-180 per share (assuming 20% growth CAGR, 11% discount rate)
• Bear Case: ₹120-130 per share (assuming 10% growth CAGR, 14% discount rate)

Issue Price at ₹162: Falls in the upper end of base case range, indicating aggressive but not unreasonable pricing.

Objects of the Issue – Use of IPO Proceeds

Deployment of Fresh Issue Proceeds (₹770 Crores)

The company has clearly articulated the utilization plan for the net proceeds from the fresh issue:

Note: After accounting for issue expenses, the exact allocation will be finalized in the prospectus.

Detailed Breakup of Fund Utilization

1. Debt Repayment (₹380 Crores – 49.35%)

Borrowings to be Repaid:

Benefits of Debt Reduction:

• Interest Savings: ₹30-35 crores annually (assuming 10% average interest rate)
• Improved Credit Rating: Lower leverage enhances creditworthiness
• Financial Flexibility: Headroom for future growth capital
• Better Valuation: Reduced debt improves investor perception

2. Hospital Expansion (₹60.50 Crores – 7.86%)

Expansion Projects:

Expected Impact:

• Additional 200-250 beds
• 3-4 new operating theatres
• Enhanced ICU capacity by 50 beds
• Revenue potential: ₹80-100 crores annually post stabilization

3. Medical Equipment Purchase (₹27.46 Crores – 3.57%)

Equipment Procurement Plan:

Strategic Importance:

• Attract super-specialty cases
• Improve diagnostic accuracy
• Reduce outsourcing costs
• Enhance patient experience and outcomes

4. General Corporate Purposes & Inorganic Acquisitions (~₹302 Crores – 39.22%)

Potential Uses:

• Working Capital: Support 90-120 day receivable cycles from government schemes
• Marketing & Branding: Expand digital presence and patient acquisition
• Technology Upgrades: HMIS (Hospital Management Information System), telemedicine
• Future Acquisitions: Distressed hospital assets in North India (as per company’s track record)
• Contingency Reserve: Buffer for unforeseen opportunities or challenges

SEBI Compliance: As per regulations, general corporate purposes are capped at 25% of gross proceeds, and unidentified inorganic acquisitions combined with general corporate purposes cannot exceed 35% of gross proceeds.

Offer for Sale Proceeds (₹150 Crores)

The ₹150 crores from the offer for sale will go entirely to Dr. Ajit Gupta (Promoter Selling Shareholder). The company will not receive any proceeds from OFS.

Promoter’s Perspective:

• Partial monetization of 14-year entrepreneurial journey
• Retains majority control post-IPO (82.89% promoter holding)
• Demonstrates confidence by not exiting significantly
• Proceeds can be used for personal financial planning or reinvestment

Promoter Holding – Pre & Post IPO Shareholding

Promoter & Promoter Group Details

Key Promoters:

1. Dr. Ajit Gupta – Chairman & Whole-Time Director (Founder, Medical Director)
2. Dr. Ankit Gupta – Managing Director (Son of Dr. Ajit Gupta, Operations Head)

Shareholding Pattern Comparison

Note: *Approximate post-IPO numbers assuming Dr. Ajit Gupta sells entire 92.59 lakh shares in OFS.

Promoter Lock-in Requirements

SEBI Regulations on Lock-in:

1. Minimum Promoter Contribution (MPC):
   • 20% of post-issue capital must be locked in for 3 years from listing date
   • Dr. Ajit Gupta and Dr. Ankit Gupta’s locked-in shares: ~8.64 crore shares (20% of 43.19 crore post-IPO shares)
2. Pre-IPO Holdings Lock-in:
   • All promoter shares held before IPO (except those sold in OFS) are locked in for 18 months from listing
3. Exception:
   • Shares sold through OFS can be transferred immediately upon listing (no lock-in)
   • This allows Dr. Ajit Gupta to receive ₹150 crores immediately

Promoter Track Record & Experience

Dr. Ajit Gupta (Chairman & Whole-Time Director):

• Qualification: MBBS, MS (General Surgery)
• Experience: 35+ years in healthcare industry
• Vision: Built Park Hospital from single-location entity to 14-hospital network
• Recognition: Multiple awards for healthcare entrepreneurship in North India

Dr. Ankit Gupta (Managing Director):

• Qualification: MBBS, MBA (Healthcare Management)
• Experience: 12+ years in hospital operations
• Role: Spearheads operational efficiency, technology adoption, and expansion strategy
• Contribution: Led successful integration of acquired hospitals

Management Philosophy:

• Doctor-led management: Clinical excellence combined with business acumen
• Asset-light expansion: Strategic acquisitions of distressed but viable hospitals
• Tier-II/III focus: Addressing healthcare gap in underserved markets
• Affordable quality care: Balancing patient access with profitability

Competitive Strengths – Why Park Medi World Stands Out

Strong Regional Dominance in North India

Market Leadership:

• #2 in North India: Second-largest private hospital chain by bed capacity
• #1 in Haryana: Market leader with 1,600 beds (53% of company’s capacity)
• Strategic Locations: Presence in both metros (Delhi, Gurugram) and Tier-II cities (Panipat, Karnal, Ambala)

Competitive Advantage:

• First-mover advantage: Established brand presence in smaller cities before large chains
• Local connect: Deep understanding of regional patient preferences and affordability
• Distribution network: 14 hospitals provide referral system across geographies

High-Quality & Affordable Healthcare

Quality Metrics:

• NABH Accreditation: 100% hospitals are NABH certified (nationally recognized quality standard)
• NABL Certification: 8 hospitals have NABL-accredited laboratories
• Clinical Outcomes: Comparable infection rates, mortality rates, and patient satisfaction scores to top-tier chains

Affordability Factor:

• Pricing Strategy: 20-30% lower than metro-based premium hospital chains
• Government Schemes: Strong participation in Ayushman Bharat, CGHS, and state health insurance programs
• Flexible Payment: EMI options, cashless insurance, and social welfare desk

Value Proposition: Delivering “Apollo-quality healthcare at Tier-II city pricing” – this is the company’s core differentiation.

Proven Acquisition & Integration Expertise

Successful M&A Track Record:

Integration Strategy:

1. Standardization: Implement Park Hospital SOPs and protocols
2. Technology: Integrate HMIS and central procurement
3. Branding: Rebrand under “Park” umbrella
4. Doctor Retention: Retain existing reputed doctors with better incentives
5. Infrastructure: Upgrade equipment and facilities

Financial Impact:

• Acquired hospitals typically turn profitable within 12-18 months
• EBITDA margins improve from 10-12% at acquisition to 22-25% post-stabilization
• Acquisition multiples: 4-6x EBITDA, significantly lower than greenfield development costs

Strong Operational & Financial Performance

Operational Excellence:

• Average Bed Occupancy: 65-70% (industry average: 60-65%)
• ARPOB (Average Revenue Per Occupied Bed): ₹25,000-28,000 per day
• Average Length of Stay (ALOS): 3.5-4 days (optimal for acute care)
• Case Mix Index: Improving toward higher complexity cases

Financial Robustness:

• CAGR (FY22-FY25): Revenue ~10-12%, PAT ~15-18%
• Margin Expansion: EBITDA margin improved from 23% (FY23) to 26.71% (FY25)
• Return Metrics: ROE of 20.68%, ROCE of 17.47%
• Cash Generation: Operating cash flow positive with improving free cash flow

Diversified Payor Mix & Risk Mitigation

Revenue Source Distribution:

• Cash/Out-of-Pocket: 35-40% (immediate realization, zero bad debt)
• Government Schemes: 25-30% (high volume, lower realization, payment delays)
• Private Insurance/TPA: 20-25% (predictable, low bad debt)
• Corporate Tie-ups: 10-15% (bulk pricing, assured volume)

Risk Management:

• No single payor contributes more than 30-35% of revenue
• Government scheme exposure managed through advance provisioning
• Strong relationships with 25+ insurance companies and 40+ TPAs
• Credit control team ensures <5% bad debt ratio

Experienced Doctor-Led Management

Management Structure:

• Promoter-Doctors at Helm: Dr. Ajit Gupta and Dr. Ankit Gupta bring clinical + business perspective
• Professional CEOs: Hired for subsidiary hospitals to drive local execution
• Advisory Board: Includes senior doctors, healthcare consultants, and industry veterans
• Decentralized Operations: Each hospital has autonomy with centralized support functions

Succession Planning:

• Dr. Ankit Gupta being groomed as second-generation leader
• Professional management layer ensures business continuity beyond promoters
• Institutionalized processes reduce key-man dependency

Risk Factors – What Could Go Wrong?

Top 10 Internal Risk Factors

1. Dependence on Medical Professionals

• Risk: High attrition of doctors, nurses, and paramedical staff could disrupt operations
• Impact: Difficulty in attracting patients, decline in clinical quality, increased hiring costs
• Mitigation: Competitive salaries, better work environment, profit-sharing for senior doctors

2. Geographic Concentration in Haryana (74-85% Revenue)

• Risk: Any adverse developments in Haryana (regulatory changes, competition, economic slowdown) directly impact majority revenue
• Impact: Revenue volatility, limited growth diversification
• Mitigation: Expanding to Punjab, Rajasthan, UP; targeting 50% revenue from Haryana in 5 years

3. High Operating Costs (Materials, Salaries, Consultancy Fees)

• Risk: Inability to pass cost inflation to patients due to pricing pressure
• Impact: Margin compression, profitability decline
• Mitigation: Operating leverage as hospitals scale, centralized procurement, renegotiating TPA rates

4. Acquisition Integration Challenges

• Risk: Failure to successfully integrate acquired hospitals or achieve expected synergies
• Impact: Write-offs, financial losses, management bandwidth diversion
• Mitigation: Proven 12-18 month integration playbook, dedicated M&A team

5. Concentration in 7 Key Specialties (92% Revenue)

• Risk: Adverse developments in internal medicine, neurology, cardiology, orthopedics, gastroenterology, urology, general surgery
• Impact: Revenue decline if demand shifts or competition intensifies in these specialties
• Mitigation: Expanding into oncology, nephrology, and super-specialty verticals

6. IPD Revenue Dependence (60-70% from In-Patient)

• Risk: Inability to maintain occupancy rates or compete on pricing
• Impact: Under-utilization of beds, lower profitability
• Mitigation: Focus on OPD growth, day-care procedures, diagnostics expansion

7. Government Scheme Payment Delays

• Risk: 25-30% revenue from government schemes faces 90-180 day payment cycles
• Impact: Working capital stress, need for increased borrowing
• Mitigation: Maintaining 90-day working capital buffer, factoring receivables, gradual reduction in government scheme exposure

8. Subsidiary Losses

• Risk: Certain subsidiaries incurred losses in recent periods during stabilization phase
• Impact: Drag on consolidated profitability
• Mitigation: Most acquired hospitals turn profitable within 18 months; exit strategy for persistently loss-making units

9. Regulatory & Compliance Risk

• Risk: Changes in healthcare regulations, pricing controls, licensing requirements
• Impact: Increased compliance costs, operational restrictions
• Mitigation: Dedicated regulatory affairs team, proactive government engagement

10. Litigation & Contingent Liabilities

• Risk: Pending tax demands (₹28.41 million), GST notice (₹1,119.01 million in subsidiary Blue Heavens)
• Impact: Cash outflow if decisions go against company
• Mitigation: Company has strong legal opinions suggesting favorable outcomes; provisions made where required

External Risk Factors

1. Healthcare Sector Headwinds:

• Increasing competition from new hospital chains and existing players expanding
• Government push toward public healthcare could reduce private hospital demand
• Medical tourism to destinations like Thailand, Singapore impacting high-value procedures

2. Macroeconomic Factors:

• Economic slowdown reducing out-of-pocket healthcare spending
• Insurance penetration remaining low (~40% of population) limits payor base
• Inflation in medical equipment, consumables, and pharmaceutical costs

3. Pandemic & Health Emergencies:

• COVID-19 demonstrated vulnerability to sudden demand shocks
• Government mandates forcing hospitals to reserve beds at regulated rates
• Elective surgery deferrals during health crises

4. Technology Disruption:

• Telemedicine platforms reducing OPD footfalls
• AI-based diagnostics threatening radiology and pathology revenue streams
• Online pharmacies impacting in-house pharmacy margins

IPO Intermediaries – Who’s Managing This Issue?

Book Running Lead Managers (BRLMs)

The Park Medi World IPO is being managed by four reputed merchant bankers:

BRLM Responsibilities:

• Due diligence and valuation
• Drafting offer documents (DRHP, RHP, Prospectus)
• Roadshows and investor meetings
• Book building and price discovery
• Coordination with SEBI, stock exchanges, and registrar

Registrar to the Offer

KFin Technologies Limited

• Address: Selenium, Tower B, Plot No. 31-32, Financial District, Nanakramguda, Hyderabad – 500032, Telangana
• Email: parkmedi.ipo@kfintech.com
• Toll-Free: 1800 309 4001 | +91 40 6716 2222
• Website: www.kfintech.com
• SEBI Registration: INR000000221

Registrar’s Role:

• Processing of IPO applications
• Managing ASBA blocking and unblocking
• Basis of allotment finalization
• Share credit to demat accounts
• Refund processing for non-allottees
• Investor grievance redressal

Contact Registrar for:

• Application status queries
• Allotment details
• Refund status
• Credit of shares to demat
• Any technical issues during application

Legal & Statutory Advisors

Legal Counsel to the Company:

• Cyril Amarchand Mangaldas
• Address: 3rd Floor, Prestige Falcon Towers, 119 Brunton Road, Bengaluru – 560025
• Phone: +91 80 6792 2000

Statutory Auditors:

• Agiwal & Associates, Chartered Accountants
• Address: D-6/9, Upper Ground Floor, Rana Pratap Bagh, Delhi – 110007
• Phone: 011 41011281, 43512990
• Firm Registration No.: 000181N
• Peer Review Certificate No.: 014899

Expert Opinion & Investment Recommendation

Brokerage & Analyst Views

[Dilip Davda – IPO Analyst]:

“Park Medi World Limited (PMWL) is the second-largest private hospital chain in North India with an aggregate bed capacity of 3,000+ beds. The company marked a setback for FY24 following its new acquisitions of hospitals. With its plans to acquire stressed assets and turn them profitable within a year has paid rewards in the form of higher margins. Based on its recent financial data, the issue appears fully priced. Investors may grab it for medium to long term.”

Investment Recommendation: SUBSCRIBE with Medium-Term View

Comprehensive Investment Analysis

✅ POSITIVES – Why You Should Consider Subscribing:

1. Leadership Position: #2 in North India, #1 in Haryana – strong regional moat
2. Proven Execution: Successfully turned around acquired hospitals within 12-18 months
3. Financial Performance: 40% PAT growth in FY25, expanding margins (26.71% EBITDA margin)
4. Reasonable Valuation: P/E of 29x is 30-40% cheaper than large-cap peers (Apollo: 65x, Max: 50x)
5. Debt Reduction: Post-IPO, debt-to-equity will improve to 0.30-0.35 from 0.61
6. Growth Runway: Healthcare penetration in Tier-II/III cities offers 5-10 year growth opportunity
7. Doctor-Led Management: Promoters bring clinical expertise + business acumen
8. Quality Standards: 100% NABH accreditation ensures clinical excellence

⚠️ CONCERNS – What Could Go Wrong:

1. Regional Concentration: 75% revenue from Haryana – limited geographic diversification
2. Government Payment Delays: 25-30% revenue from schemes with 90-180 day payment cycles
3. Specialty Concentration: 92% revenue from 7 specialties – limited service diversification
4. Fully Priced: At ₹162, the issue discounts most positives; limited margin of safety
5. Small Scale: ₹6,997 crore market cap is 1/13th of Apollo, 1/6th of Max – scale disadvantage
6. Contingent Liability: Blue Heavens subsidiary facing ₹1,119 crore GST notice (though company expects favorable outcome)
7. Tier-II/III Pricing: Lower ARPOB limits pricing power compared to metro hospitals
8. Subscription Risk: Mid-cap healthcare IPOs have seen mixed listing performance in 2024-25

Who Should Apply?

✅ SUBSCRIBE – Suitable For:

• Long-term investors with 3-5 year horizon looking for healthcare sector exposure
• Investors seeking regional plays who believe North India will outgrow other regions
• Risk-takers comfortable with mid-cap volatility and execution risks
• Those underweight in healthcare: Currently have <5% portfolio allocation to healthcare

⚠️ AVOID / CAUTIOUS – Not Suitable For:

• Short-term traders seeking quick listing gains – moderate listing pop expected
• Conservative investors wanting blue-chip hospitals – stick to Apollo, Max
• Those overweight healthcare: Already holding 15%+ in hospital stocks
• Risk-averse investors: Concerned about geographic/specialty concentration risks

Investment Strategy Recommendations

Strategy 1: Conservative Approach (Retail Investors)

• Application: 1-2 lots (₹14,904 to ₹29,808)
• Rationale: Test exposure, limit downside risk
• Exit Plan: Hold for 12-18 months, book profits if stock rallies 30-40%

Strategy 2: Moderate Approach (Experienced Investors)

• Application: 5-8 lots (₹74,520 to ₹1,19,232)
• Rationale: Meaningful exposure to healthcare theme
• Exit Plan: 50% profit booking at 50% gains, hold balance for 3-5 years

Strategy 3: Aggressive Approach (HNI/Wealthy Investors)

• Application: Maximum retail (13 lots / ₹1,93,752) or HNI category (₹10+ lakhs)
• Rationale: Build significant stake, benefit from compounding
• Exit Plan: Hold for 5+ years, accumulate on dips below issue price

Strategy 4: Skip & Watch Approach

• Rationale: Wait for listing, buy only if stock corrects 10-15% below issue price
• Target Entry: ₹140-145 range (if market correction or low subscription)
• Advantage: Better risk-reward, avoid new-issue premium

Expected Listing Performance

Grey Market Premium (GMP) Trends:

• Current GMP estimates (if available) suggest moderate listing gains
• Realistic Expectation: 5-15% listing gain if fully subscribed
• Bear Case: Flat to negative listing if market corrects or subscription is weak
• Bull Case: 20-30% listing pop if heavy oversubscription + positive market sentiment

Post-Listing Price Targets:

• 6-Month Target: ₹180-190 (12-15% upside from ₹162)
• 12-Month Target: ₹200-220 (24-36% upside)
• 3-Year Target: ₹300-350 (85-115% upside) – assumes 20% earnings CAGR

Risk-Adjusted Recommendation

Final Verdict: SUBSCRIBE for LONG-TERM (3-5 years) with MODERATE allocation

Risk-Reward Score: 6.5/10

• Upside Potential: 7/10 (Good growth prospects, sector tailwinds)
• Downside Risk: 6/10 (Moderate, given concentration risks)
• Valuation Comfort: 5/10 (Fairly priced, limited margin of safety)

Allocation Guidance:

• Maximum portfolio allocation: 3-5% of equity portfolio
• Diversification: Don’t exceed 10-15% in total healthcare holdings
• Monitoring: Review quarterly results, occupancy rates, acquisition announcements

Frequently Asked Questions (FAQs)

Important Disclaimers & Disclosures

Investment Disclaimer: This article is for informational and educational purposes only. It should not be construed as investment advice or a recommendation to buy, sell, or hold Park Medi World IPO shares. Investors must conduct their own due diligence, assess risk appetite, and consult certified financial advisors before making investment decisions.

SEBI Compliance: All information presented is based on the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) filed by Park Medi World Limited with SEBI. Financial data, company descriptions, and risk factors are sourced directly from these official documents. Investors are advised to read the offer documents carefully before applying.

No Guarantee of Returns: Past performance does not guarantee future results. IPO investments carry market risks including loss of principal. The author/website assumes no liability for investment losses arising from decisions based on this content.

Factual Accuracy: Every effort has been made to ensure accuracy of facts, figures, and dates. However, investors should verify critical information from official sources (SEBI website, stock exchange websites, company RHP) before investing.

Independent Research: This article is independently researched and not sponsored by Park Medi World Limited, its promoters, BRLMs, or any affiliated entities. The analysis represents the author’s objective opinion based on publicly available information.