Paras Healthcare IPO: Issue subscribed 2.23 times on final day, QIB demand leads

Paras Healthcare’s Rs 1,450-crore initial public offering was subscribed 2.23 times on Friday (October 23) with institutional and retail investors driving demand on the final day of bidding, according to BSE’s cumulative demand schedule.

The exchange’s update as of 6 pm showed bids for 2,69,43,378 shares against 1,20,83,331 shares offered, excluding the anchor portion. Qualified institutional buyers subscribed 3.09 times their allocation, while the retail category was subscribed twice.

Institutional investors bid for 2,03,81,592 shares against an allocation of 65,90,908 shares. Their bids accounted for about 76% of the total demand recorded in the exchange’s schedule, making them the largest contributor to the public book.

Retail investors applied for 43,95,573 shares against 21,96,969 shares reserved for them, BSE data showed. Non-institutional investors, however, subscribed only 66% of their allocation, bidding for 21,66,213 shares against 32,95,454 shares available.

Within the NII segment, applications above Rs 10 lakh subscribed 59% of the reserved shares. The category covering bids above Rs 2 lakh and up to Rs 10 lakh was subscribed 80%. Both segments remained below full subscription.

The book-built offering, which opened on October 21, comprises a Rs 500-crore fresh issue and a Rs 950-crore offer for sale. The fresh component brings capital into the company, while proceeds from the share sale go to selling shareholders.

The price band was Rs 660–693 per share, with a face value of Rs 1. Investors could apply for a minimum of 21 shares, requiring Rs 14,553 at the upper end of the band.

Ahead of the public subscription window, Paras raised Rs 652.5 crore from 39 anchor investors on October 19. According to its anchor allocation disclosure, the company allotted 94,15,584 shares at Rs 693 each.

Participants included Norway’s Government Pension Fund Global, Abu Dhabi Investment Authority, BlackRock Global Funds and Integrated Core Strategies Asia. Schemes of SBI, HDFC, ICICI Prudential, Kotak and WhiteOak Capital also participated.

The disclosure showed that nine domestic mutual funds, applying through 24 schemes, received 59% of the anchor allocation. Anchor subscriptions are separate from the demand recorded during the public bidding period.

According to the company’s abridged prospectus, Rs 320.9 crore from the fresh issue is earmarked for repayment or prepayment of company borrowings. Another Rs 54.1 crore will support debt repayment at subsidiary PMHPL, with remaining net proceeds intended for general corporate purposes.

Paras operates hospitals under the Paras Health brand. Its network comprised eight hospitals with a total capacity of 2,211 beds as of June 30, 2026, according to the prospectus.

The company reported a consolidated net profit of Rs 43.83 crore in FY2026, reversing a Rs 57.98-crore loss a year earlier. Revenue from operations increased by 24.1% to Rs 1,605.95 crore, the prospectus showed. Bed occupancy rose to 61.75% from 50.78%, while total annual inpatient volumes increased to 115,496 from 93,170.

JM Financial, BofA Securities India and Nuvama Wealth Management are the book-running lead managers. MUFG Intime India is the registrar.

The basis of allotment is tentatively scheduled for October 26. Refunds and credit of shares are scheduled for October 27, followed by the proposed listing on the BSE and NSE on October 28.