Park Medi World IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Park Medi World Limited, incorporated in 2011, is one of the leading private healthcare providers in North India. The company operates a network of 14 NABH accredited multi - super specialty hospitals under the ‘Park’ brand, with eight hospitals also holding NABL accreditation. With an aggregate bed capacity of about 3,250 beds, Park is the second largest private hospital chain in North India and the largest in Haryana, where it operates 1,600 beds.

The hospital network is strategically spread across Haryana, Delhi, Punjab, and Rajasthan, following a cluster-based expansion model that improves operational efficiency, optimizes resource utilisation and enables economies of scale. Park Hospitals offer 30+ specialty and super-specialty services, including neurology, oncology, orthopaedics, gastroenterology, urology, and critical care.

The company is supported by 1,014 doctors and 2,142 nurses, along with robust infrastructure comprising 870 ICU beds, 67 operating theatres, and oxygen generation plants at each location. Management plans to expand bed capacity to 4,900 beds by FY28, reinforcing long-term growth visibility.

IPO Synopsis:

Objective of the Issue:

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company and certain of the Subsidiaries - ₹ 380
• Funding capital expenditure for development of new hospital and expansion of existing hospital by our certain Subsidiaries Park Medicity (NCR) and Blue Heavens, respectively - ₹ 60.5
• Funding capital expenditure for purchase of medical equipment by the Company and our certain Subsidiaries, Blue Heavens and Ratangiri - ₹ 27.46
• Unidentified inorganic acquisitions and general corporate purposes.

Strengths:

• Diversified Specialty Portfolio:

The company offers over 30 specialty and super - specialty services, reducing dependence on any single department. While internal medicine remains the largest contributor at 34% of revenue, its share has moderated from 41% in FY23, reflecting improving contribution from neurology, urology, gastroenterology and other specialties, supporting balanced and sustainable revenue growth.

• Leadership in Niche Northern Markets:

Park Medi World is the second-largest private hospital chain in North India and the largest in Haryana, with 1,600 beds in the state. Its cluster-based expansion strategy enables strong regional brand recall, resource sharing, and operating efficiencies, creating a defensible leadership position in adjacent catchment areas.

• Experienced and Credible Management:

The company is led by Dr. Ajit Gupta, Founder and Chairman, with over 25 years of healthcare experience. His prior role as Chairman of the NABH Appeal Committee strengthens governance standards, regulatory understanding, and credibility, providing strategic depth and execution capability as the hospital network continues to scale.

Risks:

• High Geographical Revenue Concentration:

The hospital network is largely concentrated in Haryana, which houses 8 out of 14 hospitals and contributes nearly 75% of total revenue. Such regional dependence exposes the company to localized risks such as regulatory changes, competitive intensity, or demand slowdowns, which could materially impact revenue visibility and growth.

• Heavy Dependence on Government Insurance Schemes:

Over 85% of revenues are sourced from government backed insurance schemes. This increases exposure to payment delays, claim rejections, and policy changes, leading to elevated receivables and higher working capital requirements, which may pressure cash flows and financial flexibility.

• Elevated Doctor Attrition Risk:

Clinical operations are highly dependent on specialist doctors for procedures and consultations. The company has experienced a high attrition rate of 38 - 47% over the past three fiscal years, which may disrupt service continuity, increase recruitment and retention costs, and impact patient volumes if not managed effectively.

Financial Snapshot (Rs. In Crores):

Peer Comparison:

Conclusion:

Park Medi World has built a sizable presence in North India, emerging as the second-largest private hospital chain in the region with 3,250 beds and a strong footprint in Haryana. Its broad 30+ specialty mix, NABH accredited hospitals and cluster based expansion model lend operational scale and cost advantages. Financially, the company reports EBITDA margins of 28% and PAT margins of 15%, both marginally ahead of industry averages, indicating reasonable operating efficiencies.

However, performance quality raises concerns. Revenue growth has been uneven, return ratios such as ROE and ROCE have declined materially from FY23 levels, and ARPOB remains significantly below industry benchmarks, reflecting weaker pricing power. High dependence on Haryana (75% of revenue), reliance on government insurance payors and elevated doctor attrition add to earnings and execution risks.

While the healthcare sector offers long term demand visibility, Park Medi World must demonstrate sustained growth, better monetisation per bed, and stabilised returns to justify long-term optimism.

We Recommend the IPO for Listing Gains.

IPO Allotment

Find out the allotment status for the Wakefit Innovations IPO by checking the Kfin Technologies IPO Application Status page.