Attractively Priced IPO
Incorporated in 2011, Park Medi World Ltd. (PMWL) operates fourteen multi super-specialty hospitals with ~ 3,000 beds under the Park brand across North India. The promoters of the company are Dr. Ajit Gupta and Dr. Ankit Gupta. PMWL is the second-largest hospital chain in North India under a single brand. Its current bed capacity of 3,250 is expected to rise to 4,900 beds upon completion of the ongoing expansion projects.
Inpatient (IPD) services contribute 96.1% of the company’s revenue. This includes surgeries, ICU care, and admissions for cardiology, oncology and orthopaedics. The remaining 3.9% comes from the Outpatient (OPD) division, which provides consultations and day procedures. Both IPD and OPD services are supported by integrated laboratory, radiology, and pathology facilities.
Objects of the Issue:
The IPO consists of a fresh issue of Rs 960 crore and an OFS of Rs 300 crore. Funds from the fresh issue will be used to:
- Repay or prepay borrowings of Rs 410 crore
- Fund expansion plans of Rs 110 crore
- Purchase new medical equipment worth Rs 78 crore
| Particulars | Details |
| Name of the Company | Park Medi World |
| Issue Open | 10-12-2025 |
| Issue Closes | 12-12-2025 |
| Issue Size (Rs in cr.) | — |
| Fresh Issue (Rs in cr.) | 770 |
| Offer for Sale (Rs in cr.) | 150 |
| Face Value per Share (Rs.) | Rs 2 |
| Upper Issue Price Band | Rs 162 |
Post-Issue Shareholding: Promoters’ holding will drop to 82.9% post-IPO from 95.6% earlier.
Financial Performance
Between FY23 and FY25, Park Hospitals delivered moderate growth of 5.4% in revenue, while EBITDA rose marginally by 0.6% and PAT fell by 3.3%. The decline in profitability was led by higher lab expenses, impairment of trade receivables, and lower inpatient revenue.
For the half year ended 30th September 2025, performance improved meaningfully with revenue rising 16.9% to Rs 808.7 crore, while PAT increased 23.3% to Rs 139.1 crore.
Operational Highlights:
The company’s average realisation per bed (ARPB) remains lower than peers. In fiscal 2025, it generated Rs 1,394 crore revenue on a capacity of 3,000 beds. In comparison, a smaller peer like Yatharth reported Rs 897 crore revenue with a capacity of 1,300 beds, indicating stronger ARPB.
During the post-acquisition integration phase, Park Hospitals has been witnessing high attrition of over 45% among doctors and nurses. This is expected to gradually decline as integration stabilises.
(Rs. in crore)
| Particulars | Sep-25 | Sep-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (2025 over 2023) |
| Number of months | 6 | 6 | 12 | 12 | 12 | |
| Revenue from operations | 808.7 | 691.5 | 1,393.6 | 1,231.1 | 1,254.6 | 5.4% |
| Other income | 14.7 | 16.0 | 32.4 | 32.0 | 17.6 | 35.8% |
| EBIDTA | 231.9 | 171.0 | 404.6 | 339.0 | 409.3 | -0.6% |
| Interest | 29.7 | 30.5 | 59.7 | 70.3 | 50.6 | |
| Depreciation | 28.3 | 27.5 | 58.2 | 50.6 | 40.5 | |
| Profit after tax | 139.1 | 112.9 | 213.2 | 152.0 | 228.2 | -3.3% |
| EBIDTA Margin (%) | 28.7% | 24.7% | 29.0% | 27.5% | 32.6% | |
| EPS (Rs.) | 3.6 | 2.9 | 5.6 | 4.0 | 5.9 |
Peer Comparison:
Apollo Hospitals is the leader in the hospital and medical listing segment. Park Medi World is compared with other smaller, listed hospital companies such as Jupiter and Yatharth in the table below. Park’s CAGR growth in revenue and profitability is significantly lower than its listed peers, including Krishna, Jupiter, Global Health, and Yatharth. All four of these peer companies have delivered substantial returns post-IPO, as reflected in the table.
| Particulars | Park Medi World | Krishna Institute | Global Health | Jupiter | Yatharth Hospital |
| Revenue Growth (%) Fiscal 2023-2025 | 5.4% | 17.4% | 16.9% | 20.4% | 30.3% |
| EBITDA Growth (%) | -0.6% | 18.9% | 18.8% | 20.7% | 28.1% |
| Profit After Tax Growth (%) | -3.3% | 8.7% | 21.5% | 62.9% | 40.9% |
| IPO – Month & Year | Dec-2025 | Jun-21 | Nov-22 | Sep-23 | Jul-23 |
| Current Market Price (Rs) | n.a. | 798 | 1,456 | 1,759 | 843 |
| IPO Price (Rs) | 162 | 165 | 336 | 735 | 300 |
Park Medi World – Performance and Risks
Park Medi World is aware of its lower average realisation per bed (ARPB) compared with peers and plans to improve it by 5% annually. Its growth in revenue and profitability between fiscal 2023 and 2025 has remained below industry levels. While four peer hospital companies of comparable size recorded CAGR of 17–30% in topline, Park achieved a modest 5.4% growth. Its profit after tax (PAT) declined by 3.3%, compared with 62.9% growth for Jupiter and 40.9% for Yatharth.
Key Risk Factors (as per RHP):
Park Medi World has highlighted the following risks, which are common across the hospital industry:
- Geographic concentration – Over 80% of revenue comes from hospitals in Haryana, exposing the business to state-specific regulatory, political, competitive, and economic risks. Any disruption in empanelment or local policy could disproportionately affect earnings.
- Leverage and cash flow pressure – The hospital chain operates with meaningful debt and lease liabilities. Elevated capital expenditure and delayed receivables from government schemes create cash flow pressures. Proceeds from the fresh issue will be partly used to repay borrowings, mitigating some of this risk.
- Dependence on government/institutional payors – A large share of revenue comes from government panels and institutional payors (CGHS, ECHS, state schemes, PSUs). These channels involve tariff caps, pricing rigidity, and delayed payments, which can affect ARPB, margins, and working capital.
The hospital industry commands high price-to-earnings (P/E) ratios, with Max Healthcare at the top at 98 times and Yatharth at 47 times. Park Medi World has priced its IPO at an upper price band of Rs 162, implying a P/E multiple of 29 times on its FY25 EPS of Rs 5.6.
The four hospital IPOs that have listed since June 2021 have delivered strong returns post-listing. While past performance does not guarantee future gains, many investors view Park Medi World’s IPO as attractively priced.
Leave A Comment