Capital repayment/prepayment, in full or in part, of outstanding borrowings availed by the company and its subsidiaries (₹ 380 Cr.)
Funding capital expenditure for the development of a new hospital by their subsidiary, Park Medicity (NCR) (₹ 60.50 Cr.)
Funding capital expenditure for the purchase of medical equipment by the company and its subsidiaries, Blue Heavens and Ratangiri (₹ 27.46 Cr.)
Offer for sale of equity shares aggregating up to ₹ 150 Cr. The company will not receive any proceeds from the Offer for Sale.
Our View
Incorporated in 2011, Park Medi World is the second-largest private hospital chain in North India in terms of bed capacity. They increased bed capacity from 2,550 beds (Mar 31, 2023) to 3,250 beds (Sep 30, 2025) and have expansion pipeline in Ambala, Panchkula, Rohtak, New Delhi, Gorakhpur and Kanpur. The north region is expected to grow fastest (CAGR 12%-14% between FY25-FY29) to reach ~₹3.3-3.4 trillion by FY29.
Risks to consider include intense competition, change in credit ratings affecting borrowing cost, decline in revenue and PAT in FY24 vs FY23, high dependence on doctors, nurses and support staff, revenue concentration in Haryana, high costs and expenses, and dependence on inpatient revenue which may affect operations and cash flows.
Financially, topline grew at a CAGR of 5% between FY23-25. There was a profit setback in FY24 due to hire provisions and acquisition-related depreciation/amortization. At HYFY26, EBITDA & PAT margins stood at 26.85% and 17.21% respectively, and Debt to Equity was 0.58x.
The issue is priced at a P/BV of 5.4x based on NAV of Rs.30 as at HYFY26. If FY26 annualised earnings are used, the asking price is at an implied P/E of ~30x versus an industry average of ~69x, suggesting the issue is fairly priced. At upper band (₹162), market cap is ~₹6,997 crore. Considering factors, risks, valuation and strong healthcare demand, investors may consider investing with a long-term horizon.
Financial Snapshot & Valuation
Topline CAGR (FY23-25): 5%
EBITDA Margin (HYFY26): 26.85%
PAT Margin (HYFY26): 17.21%
Debt to Equity: 0.58x (HYFY26)
P/BV: 5.4 (NAV Rs.30 as at HYFY26)
Indicative P/E (annualised FY26): ~30x (industry ~69x)
Note: Issue appears fairly priced; investors should weigh operational performance and regional concentration risks.
Key Risk Factors (Summary)
Intense competition in private hospitals
Change in credit ratings may increase borrowing costs
Revenue / PAT decline in FY24 vs FY23
Dependence on doctors, nurses and medical staff
Concentrated revenue from Haryana hospitals
High operating costs and dependency on inpatient revenue
Frequently Asked Questions (FAQs)
When does the Park Medi World IPO open and close?
The Park Medi World IPO opens on December 10, 2025 and closes on December 12, 2025.
What is the price band for the Park Medi World IPO?
The price band is ₹154 to ₹162 per equity share.
What is the lot size and minimum application amount?
The lot size is 92 shares. Minimum application amount is ₹14,904 (92 shares).
Is this IPO fairly priced?
Our view: the issue is fairly priced (P/BV ~5.4; implied P/E ~30x annualised FY26) relative to the industry; investors should evaluate regional concentration and operational risks.
Should I subscribe to this IPO?
Sushil Finance view: Subscribe for long-term horizon. Consider operational metrics, regional concentration and long-term healthcare demand before deciding.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
June 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
8,233.94 |
14,259.74 |
12,630.84 |
12,721.77 |
| Total Expenditure |
6,494.99 |
11,392.99 |
10,416.57 |
9,553.72 |
| EBITDA |
2,171.36 |
3,721.73 |
3,103.01 |
3,903.41 |
| Profit before Tax |
1,738.95 |
2,866.75 |
2,181.63 |
3,150.28 |
| Profit after Tax |
1,391.43 |
2,132.15 |
1,520.07 |
2,281.86 |
| E.P.S. (Diluted) |
3.62* |
5.55 |
3.95 |
5.94 |
| P/E (x) (Diluted) |
- |
29 |
- |
- |
| ROCE (%) |
11.45%* |
20.08% |
18.81% |
32.91% |
*Not annualised
PRICE CHART (@ ₹ 162) (Retail Category)
| LOT SIZE |
| Amount |
| 92 |
14,904 |
| 184 |
29,808 |
| 276 |
44,712 |
| 368 |
59,616 |
| 460 |
74,520 |
| 552 |
89,424 |
| 644 |
104,328 |
| 736 |
119,232 |
| 828 |
134,136 |
| 920 |
149,040 |
| 1,012 |
163,944 |
| 1,104 |
178,848 |
| 1,196 |
193,752 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,288 |
208,656 |
| Big HNI |
6,256 |
1,013,472 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
15/12/2025 |
| Initiation of refunds/unblocking ASBA Fund |
16/12/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
16/12/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
17/12/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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