Park Medi World IPO gets fully subscribed on Day 3; GMP suggests tepid listing

Park Hospital IPO

The initial public offering of Park Medi World, which operates hospital chain under the brand Park Hospital, got fully subscribed on its third and final day of public bidding (December 12). This comes even as the grey market estimates declined for the Rs 920-crore maiden issue of the company.

The IPO received bids for nearly 5.67 crore shares, as against an offer size of 4.18 crore shares, according to data on NSE at 10.45 am. Retail investors have subscribed their allotted quota over 1.5 times (150 percent), while Non Institutional Investors (NII) have booked their reserved portion more than 2 times (240 percent). Qualified Institutional Buyers (QIB) have subscribed 32 percent of their allotted quota.

Park Medi World IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with 5.25 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This is more than 74 percent lower than the 20.37 percent GMP quoted by the site on December 7.

According to IPO Watch, the unlisted shares of the company were trading with 7.40 percent GMP over the IPO price.

About Park Medi World IPO:

Park Medi World launched its IPO to raise Rs 920 crore through a fresh issue of 4.75 crore shares worth Rs 770 crore and an offer for sale (OFS) of shares worth Rs 150 crore by promoter Ajit Gupta. The IPO, which has a price band of Rs 154-162 per shares, will remain open for public bidding between December 10 and December 12.

Investors can bid for a minimum of 92 shares, requiring an investment of Rs 14,904 at the upper price band, and in multiples thereafter. The allotments will likely be finalized by December 15, and the shares are scheduled to be listed on stock exchanges BSE and NSE on December 17.

How will the IPO proceeds be used?

Park Medi World, that operates the second largest private hospital chain in North India with 3,000 beds capacity, will utilise Rs 380 crore of fresh issue proceeds for repayment of certain outstanding borrowings.

The company will use Rs 60.5 crore for development of new hospital by subsidiary Park Medicity (NCR), Rs 27.4 crore for purchase of medical equipment, and the remainder funds for unidentified inorganic acquisitions and general corporate purposes.

Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services are managing the Park Hospital IPO.

Should you apply for Park Medi World IPO?

Park Medi World Limited is the second-largest private hospital chain in North India with 3,000 beds, and the largest in Haryana with 1,600 beds as of March 31, 2025, noted Anand Rathi. Their network comprises 14 NABH-accredited multi-super specialty hospitals under the 'Park' brand, including eight that are also NABL accredited, it added.

"A key element of their strategy is to attract and retain qualified and experienced doctors, consultants, and medical professionals to maintain and enhance the quality of care they provide," the domestic brokerage said, adding that the IPO appears fairly valued. It advised investors to subscribe to the issue for the long term.

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