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News Topical, Digital Desk : Park Medi World Limited IPO has received approval from the market regulator (SEBI). The company is planning to raise Rs 1260 crore, which will include a fresh issue of Rs 960 crore and an offer for sale (OFS) of Rs 300 crore from the promoter. Each share will be issued at a face value of Rs. The company said in draft papers that it may also consider a pre-issue offering of up to Rs 192 crore.
According to a Crisil report, Park Medi World is the second largest private hospital chain in northern India, operating under the 'Park' brand. It has a total bed capacity of 3,000, with 1,600 beds in Haryana, making it the largest private hospital chain in the state.
As of September 30, 2024, the company provides over 30 super-speciality and specialty services, including internal medicine, neurology, urology, gastroenterology, general surgery, orthopedics and oncology. The company has 891 doctors and 1,912 nurses.
How are the company's financials? Park Medi World has reported a profit of Rs 113 crore on revenue of Rs 692 crore in the six months to September 2024. The company's profit in the financial year 2023-24 was Rs 152 crore, down from Rs 228 crore in the financial year 2022-23. The income for the financial year 2024 was Rs 1231 crore, which was slightly less than the previous year's Rs 1255 crore. Where will the company use the raised funds?
- 410 crore to repay or partially repay the loan.
- Rs 110 crore for development of new hospitals and expansion of existing hospitals.
- Rs 77.18 crore to purchase medical equipment for its subsidiaries Blue Havens and Ratnagiri.
The company's debt stood at Rs 649 crore as on September 30, 2024, up from Rs 687 crore as on March 31, 2024.
The company's business is dependent on doctors, consultants, resident medical officers and nurses. The attrition rate of doctors and resident medical officers in the six months to September 2024 was 45% and 62%, respectively. Attrition of consultants and medical professionals increased in April-September compared to the financial year 2024. One tax case of Rs 4,74 crore is pending against the company and 22 tax cases of Rs 118 crore are pending against its subsidiaries.
What will be the structure of this IPO?
The IPO will be through the book building process, in which:
- Up to 50% of the share will be for qualified institutional buyers.
- Less than 15% will be for non-institutional investors.
- Not less than 35% will be for retail investors.
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