Park Medi World shares settle 9% lower than IPO price after weak market debut

Park Medi World listing ceremony at BSE

The shares of Park Medi World made a weak market debut on December 16, listing at Rs 155.60 apiece on BSE. This marks a discount of 3.95 percent over the IPO price of Rs 162 per share. The company's market capitalisation during debut stood at nearly Rs 6,721 crore.

On NSE, the shares listed with a slightly lower discount of 1.98 percent at Rs 158.80 apiece. The shares then dropped around 9 percent to close at Rs 148.05 apiece, marking a fall of over 7 percent from the IPO price. The company's market capitalisation at the end of the debut day stood at around Rs 6,395 crore.

This comes after the Rs 920-crore initial public offering of the company that operates hospital chain under the brand Park Hospital saw strong investor interest during its three days of public bidding, being subscribed more than 8 times its offer size between December 10 and December 12.

Listing performance vs grey market expectations:

The listing performance has significantly misses grey market estimates. Ahead of listing, the unlisted shares of the company were trading with 3.09 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. The GMP has fallen from the 20.40 percent quoted by the site on December 7.

According to IPO Watch, the unlisted shares of the company were trading with 3.09 percent GMP over the issue 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 had a price band of Rs 154-162 per shares.

Investors could bid for a minimum of 92 shares, requiring an investment of Rs 14,904 at the upper price band, and in multiples thereafter.

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.

What lies ahead?

"While the listing was weak, long-term performance will depend on the company’s ability to improve operational efficiency, enhance return ratios, and scale hospital utilisation in a competitive healthcare environment. Investors and traders are advised to hold the stock with a medium-to-long-term perspective, while maintaining a stop-loss below Rs 145," said Shivani Nyati, Head of Wealth at Swastika Investmart.

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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