Paras Healthcare IPO: GMP, Price Band, Lot Size, Financials & Review

Paras Healthcare Ltd., which runs hospitals under the Paras Health brand, opens its ₹1,450 crore IPO on 21 October 2026. The issue closes on 23 October 2026, and the price band is ₹660 to ₹693 per share. It combines a ₹500 crore fresh issue with a ₹950 crore offer for sale (OFS), so most of the money goes to selling shareholders rather than to the company. This review covers the issue terms, the turnaround in profits, valuation, use of proceeds, GMP and the risks the numbers point to.

Paras Healthcare IPO Details

The retail portion is only 10% of the issue, about 20,92,352 shares. That is roughly 99,600 minimum lots of 21 shares. If retail demand is heavy, most retail applicants will not get an allotment. A 75:15:10 split is what SEBI's ICDR Regulations require when a company does not meet the profit track-record test for a regular IPO. Paras reported losses in FY24 and FY25.

About Paras Healthcare

Paras Healthcare was incorporated in 1987. Its hospital business started in 2006 with a 200-bed hospital and has grown into a chain of eight multi-specialty hospitals. As of 30 June 2026 they had a combined 2,211 beds. They are in Gurugram and Panchkula (Haryana), Patna and Darbhanga (Bihar), Kanpur (Uttar Pradesh), Udaipur (Rajasthan), Ranchi (Jharkhand) and Srinagar (Jammu and Kashmir). Several are in tier 2 and tier 3 cities.

Most revenue comes from high-acuity specialties: cardiac sciences, oncology, neurosciences, gastroenterology, orthopaedics and renal care. Together they produced about three-quarters of FY26 revenue. Two hospitals are planned, a 300-bed facility in Gurugram and a 500-bed facility in Ludhiana. They would take total capacity to 3,011 beds by March 2028, roughly 36% more than today. The Srinagar hospital is run by a wholly owned subsidiary, PMHPL.

Financial Performance

Restated consolidated figures, ₹ crore:

• Total income grew about 14% in FY25 and about 24% in FY26.
• EBITDA barely moved in FY25 (up about 1%) and then more than doubled in FY26. The EBITDA margin rose from about 11.9% to 20.6%, which turned a ₹57.98 crore loss into a ₹43.83 crore profit.
• The June 2026 quarter alone earned ₹49.68 crore, more than the whole of FY26, at a 23.7% EBITDA margin. Total borrowing has kept rising every year and stood at ₹1,429.49 crore in June 2026.

Key Ratios and Valuation

What the P/E really says. The post-issue P/E depends on which profit you use. On FY26 PAT, the post-issue market cap is about 171x earnings (₹7,498.34 crore ÷ ₹43.83 crore). On the June 2026 quarter's PAT multiplied by four (₹198.72 crore), it is about 37.7x. That second figure assumes every remaining quarter of FY27 matches the best quarter so far. The real multiple will land between the two, depending on whether the recent margin gains last.

For context, recent hospital IPOs listed on Chittorgarh were priced at these P/Es: Manipal Health Enterprises 75.93x, Rays of Belief 75.63x, Gujarat Kidney & Super Speciality 61.62x and Park Medi World 29.21x. They differ in size, region and maturity, so treat the comparison as indicative only. See IPO valuation ratios explained.

Objects of the Issue

The fresh issue proceeds will be used for:

1. Prepayment or scheduled repayment of the company's borrowings: ₹320.90 crore
2. Investment in the wholly owned subsidiary PMHPL so it can repay its borrowings: ₹54.10 crore
3. General corporate purposes: the balance, after issue expenses

So ₹375 crore of the ₹500 crore fresh issue goes to debt reduction. That is about 26% of total borrowing as of June 2026. The ₹950 crore OFS, about 66% of the issue, goes to the selling shareholders and not to the company. Read fresh issue vs offer for sale to see why that matters.

Shareholding and Promoters

The promoter is Dr Dharminder Kumar Nagar, who holds 72.8% before the issue. He is selling shares worth ₹300 crore in the OFS. Commelina Ltd., an affiliate of Malaysian private equity firm Creador, holds 16.44% and is selling ₹650 crore of shares. Other pre-issue holders include 360 ONE (6.37%) and Axis New Opportunities AIF (3.63%).

At the upper band, the promoter sells about 43.3 lakh shares and Commelina about 93.8 lakh. Together that equals the OFS of 1,37,08,513 shares. Total shares rise from 10,09,86,187 to 10,82,01,194. On our calculation, the promoter's stake falls to about 64% and Commelina's to about 6.7%. These figures will change slightly if the issue is priced lower in the band.

Paras Healthcare IPO GMP Today

Our tracker showed a grey market premium of ₹95 on 17 October 2026, about 13.71% above the upper band. Earlier readings were ₹83 on 14 October, ₹100 on 15 October and ₹97 on 16 October. GMP is unofficial and unregulated, and it can change sharply before listing, so it is not a reliable guide to the listing price. Read what GMP means and track the live GMP.

Strengths (as stated by the company)

• An established healthcare provider in North India, Bihar and Jharkhand, under a brand with more than 20 years of history
• A focus on high-acuity specialties
• A mix of mature, emerging and new hospitals
• Growing occupancy and better operating efficiency
• An expansion pipeline taking capacity to 3,011 beds
• Modern clinical infrastructure and standard care protocols

Risks to Consider

• Short profit record: losses in FY24 and FY25 were followed by a profit of ₹43.83 crore in FY26, a 2.69% PAT margin.
• High leverage: debt-to-equity was 3.53x in FY26. Even after ₹375 crore of repayment, more than ₹1,000 crore of the June 2026 borrowing would remain.
• Valuation: the issue is priced at about 171x FY26 earnings and 17.72x book. The lower 37.7x multiple depends on one strong quarter being repeated.
• Expansion risk: the 800 new beds add about 36% capacity. New hospitals usually take time to fill beds and may weigh on margins at first.
• Regional concentration: all eight hospitals are in North and East India, several in smaller cities.
• Large OFS: about two-thirds of the issue is existing shareholders selling, including the promoter.

How to Check Allotment Status

MUFG Intime India (formerly Link Intime) is the registrar, and allotment is expected on 26 October 2026. Check your status on our Paras Healthcare allotment page, or see how to check allotment by registrar. To understand the retail lottery, read how IPO allotment works.

Disclaimer: This article is for educational purposes only and is not investment advice. GMP is unofficial and can change quickly. Read the RHP and consult a SEBI-registered adviser before investing.