Park Medi World, which operates the private hospital chain under the Park brand in North India, approached capital markets to raise Rs 1,260 crore via initial public offering for expansion and debt reduction.
It intends to raise Rs 960 crore through fresh issuance and Rs 300 crore via offer-for-sale. Promoter Ajit Gupta will be selling shares worth Rs 300 crore in the offer-for-sale.
Further, the company that claimed the second largest private hospital chain in North India with a capacity of 3,000 beds is likely to consider raising funds up to Rs 192 crore in the pre-IPO round. If the pre-IPO placement is completed, the said amount will be reduced from the fresh issue component.
Park Hospital operates a network of 13 NABH accredited multi-super specialty hospitals, of which seven hospitals are also NABL accredited, with a team of 891 doctors and 1,912 nurses across hospitals.
Park Medi World plans to utilise Rs 410 crore out of net fresh issue proceeds for repaying debt which as of December 2024 stood Rs 593.6 crore.
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Further, it proposes to spend Rs 110 crore for development of new hospital and expansion of existing hospital, and Rs 77.2 crore for purchase of medical equipment. And the remainder funds will be used for unidentified inorganic acquisitions and general corporate purposes.
On the financial front, the company has recorded a 33.4 percent decline in profit at Rs 152 crore and a 1.9 percent fall in revenue at Rs 1,231 crore for the fiscal 2024 compared to previous year. Profit in six months period ended September 2024 stood at Rs 112.9 crore on revenue of Rs 691.5 crore.
Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services are appointed to handle the public issue.
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