Park Medi World Limited IPO

Park Medi World Limited is a prominent healthcare service provider in North India. As of March 31, 2025, it is the second-largest private hospital chain in North India by bed capacity and the largest private hospital chain in Haryana. The company operates a network of 14 multi-super specialty hospitals under the ‘Park’ brand

Key Business Highlights:

• Infrastructure: As of September 30, 2025, the company had an aggregate bed capacity of 3,250 beds, consisting of 3,050 operational beds and 870 ICU beds.

• Presence: The hospitals are located across four states: Haryana (8 hospitals), Punjab (3 hospitals), Rajasthan (2 hospitals), and New Delhi (1 hospital).

• Services: The company offers over 30 super-specialty and specialty services, including Internal Medicine, Neurology, Urology, Gastroenterology, Cardiology, Oncology, and Orthopedics.

• Expansion: The company has a history of growth through acquisitions and has a pipeline for further expansion in Ambala, Panchkula, Rohtak, Gorakhpur, and Kanpur.

B) Revenue Streams and Financial Analysis

For the six-month period ended September 30, 2025, the company reported a total revenue from operations of ₹ 8,086.57 million.

Revenue Breakdown by Segment (Six months ended Sept 30, 2025):

1. In-Patient vs. Out-Patient:

• In-Patient Department (IPD): This is the primary revenue driver, contributing ₹ 7,673.49 million (approximately 94.89% of revenue from operations).
• Out-Patient Department (OPD): This segment contributed ₹ 345.17 million (approximately 4.27% of revenue from operations).
• Other Operating Revenue: Contributed ₹ 67.91 million.

2. Revenue by Payor Category:

• Government Schemes and PSUs: The company relies heavily on government-sponsored patients, which contributed 83.38% of the revenue.
• Self-Pay: Patients paying out-of-pocket contributed 8.24%.
• Insurance: Private insurance contributed 7.49%

C) Key Risk Factors

The following critical risks are highlighted in the RHP:

1. High Dependence on Government Schemes: A significant portion of revenue (83.38%) comes from government schemes and PSUs. Delays in receiving payments or rejection of claims by these agencies could adversely impact cash flows and results of operations.

2. Geographic Concentration: The company derives a substantial majority (69.06%) of its revenue from hospitals located in a single state, Haryana. Adverse political or economic developments in this region could significantly impact the business.

3. Contingent Liabilities: The company has significant contingent liabilities. As of September 30, 2025, corporate guarantees given by the company and its subsidiaries constituted 71.58% of its net worth.

4. Attrition of Medical Professionals: The business is highly dependent on doctors and nurses. As of September 30, 2025, the attrition rate for doctors was 33.72%. Inability to retain staff could affect service quality.

5. Integration of Acquisitions: The company has grown via acquisitions (e.g., the recent ongoing acquisition of Febris Multi Specialty Hospital). Failure to successfully integrate these new assets or achieve expected synergies poses a business risk.

6. Operational Risks: The company operates in a capital-intensive industry with high fixed costs (medical equipment, employee benefits). A failure to pass on cost increases to patients due to price caps or competitive pressures could affect profitability.

7. Regulatory Compliance: The healthcare industry is strictly regulated. Non-compliance with safety, health, environmental, or atomic energy regulations (for radiology equipment) could lead to penalties.

D) Objects of the Issue (Use of Proceeds)

• Type of Issue: The IPO consists of a Fresh Issue of up to ₹ 7,700.00 million and an Offer for Sale (OFS) of up to ₹ 1,500.00 million.

• Offer for Sale: The proceeds from the OFS will go to the Promoter Selling Shareholder, Dr. Ajit Gupta, and the company will not receive any funds from this component.

Use of Net Proceeds from Fresh Issue: The company proposes to utilize the Net Proceeds from the Fresh Issue for the following specific purposes:

• Repayment of Borrowings: An estimated ₹ 3,800.00 million will be used for the repayment or prepayment, in full or in part, of outstanding borrowings availed by the Company and its Subsidiaries.
• New Hospital Development: Approximately ₹ 605.00 million is allocated for funding capital expenditure for the development of a new hospital by its subsidiary, Park Medicity (NCR).
• Medical Equipment Purchase: An estimated ₹ 274.59 million will be utilized for funding capital expenditure for the purchase of medical equipment by the Company and its subsidiaries, Blue Heavens and Ratangiri.
• Inorganic Growth & General Corporate Purposes: The remaining balance will be used for unidentified inorganic acquisitions and general corporate purposes