IPO- Bound Paras Healthcare Targets 36 pc Rise in Bed Capacity To 3,011 By FY28

IPO-bound Paras Healthcare Ltd plans to increase its bed capacity by around 36% to 3,011 by March 2028 from 2,211 beds as of March 31, 2026, as it pursues a disciplined expansion strategy focused on North India while maintaining capital efficiency, according to the draft papers.

The company, which filed its draft papers with Sebi in June for an ₹1,800 crore Initial Public Offering (IPO), is now awaiting the market regulator's approval to float the issue.

The hospital chain, which operates under the Paras Health brand across five states and one Union Territory, aims to strengthen its presence in markets with low bed density, limited penetration of advanced tertiary and quaternary care, and improving economic prospects, the draft papers noted.

Paras Healthcare expects to add a 300-bed Gurugram II hospital in FY27 and a 500-bed hospital in Ludhiana in FY28. Both projects are being developed under long-term lease arrangements.

The firm said its expansion strategy is guided by financial return thresholds, balance sheet strength and long-term scalability, with a focus on disciplined capital deployment.

As of March 31, the company operated eight hospitals with 2,211 beds. It reported capital expenditure of ₹7.63 million per bed as of March 31, suggesting its focus on optimising upfront investment while expanding capacity.

Rather than relying solely on owned assets, Paras Healthcare follows a mix of owned and asset-light models. Six of its eight hospitals operate from leased premises and the network also includes revenue-sharing arrangements, long-term leases and a Public-private Partnership (PPP) model.

Paras Healthcare said its hospital design focuses on optimised clinical-to-non-clinical space ratios, a higher proportion of shared rooms, compact administrative areas and outsourcing of non-core services such as laundry and transport to improve capital efficiency.

Its high-acuity specialties -- cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics and sports injury, and renal sciences -- contributed 74.70% of revenue from operations in FY26, compared with 71.92% in FY25 and 72.34% in FY24.

The company said its combination of asset-light expansion, efficient hospital design and focus on specialised care is intended to support scalable growth while maintaining financial discipline.

The Gurugram-based company's proposed IPO comprises a fresh issue of equity shares aggregating up to ₹500 crore and an Offer For Sale (OFS) of equity shares worth up to ₹1,300 crore by the selling shareholder, according to the draft red herring prospectus (DRHP).

The firm intends to utilise the proceeds from the fresh issue towards prepayment or repayment of certain outstanding borrowings, investment in its wholly-owned subsidiary PMHPL for its debt payment, and for general purposes.