Paras Healthcare's initial public offering (IPO) has been subscribed 32% so far on its second day, indicating steady investor interest. The IPO, valued at ₹1,450 crore, combines a fresh equity issue of ₹500 crore and an offer-for-sale (OFS) of ₹950 crore by promoter Dharminder Kumar Nagar and investor Commelina Ltd. The public issue will conclude on October 23.
- The IPO has received bids for 38,58,582 shares against 1,20,83,331 shares on offer.
- Retail investors subscribed 1.24 times, non-institutional investors 21%, and qualified institutional buyers (QIBs) 6%.
- Anchor investors contributed ₹652.5 crore before the IPO.
- The IPO price band is set between ₹660 and ₹693 per share.
- A lot consists of 21 shares, with multiples allowed thereafter.
- Net proceeds will be used for debt repayment and general corporate purposes.
- Paras Healthcare operates eight hospitals across five states and one Union Territory.
- Shares will be listed on NSE and BSE on October 28.
What is the structure of Paras Healthcare's IPO?
The IPO is a combination of a fresh issue and an offer-for-sale. The fresh issue involves issuing new equity shares worth ₹500 crore, which will help the company raise funds directly. The offer-for-sale involves promoters and investors selling shares valued at ₹950 crore to the public. This structure allows the company to raise capital while providing an exit opportunity for existing shareholders.
How has the subscription progressed so far?
By the afternoon of the second day, the IPO had received bids for 38,58,582 shares against the total offer of 1,20,83,331 shares, resulting in a 32% subscription. Retail investors have shown strong interest, subscribing 1.24 times their portion. Non-institutional investors have subscribed 21%, while qualified institutional buyers have subscribed 6%. This shows a varied participation across investor categories.
Who are the anchor investors in this IPO?
Before the IPO opened to the public, Paras Healthcare secured ₹652.5 crore from anchor investors. These include prominent financial institutions such as SBI Mutual Fund, ICICI Prudential Life Insurance, Abu Dhabi Investment Authority, BlackRock, and Eastspring Investments. Anchor investors help build confidence in the IPO by committing to buy shares ahead of the public subscription.
What is the pricing and lot size for the IPO?
The IPO price band is set between ₹660 and ₹693 per share. Investors must apply in lots of 21 shares, and applications can be made in multiples of this lot size. This structure ensures uniformity in share allotment and helps manage demand efficiently.
What will the company do with the funds raised?
Paras Healthcare plans to use the net proceeds from the fresh equity issue primarily to repay existing debt and for general corporate purposes. Reducing debt can strengthen the company’s financial position, while general corporate purposes may include expansion, working capital, or other operational needs.
What services does Paras Healthcare provide and where?
Paras Healthcare operates a network of eight hospitals located across five states and one Union Territory in India. The company specializes in several medical fields including cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics and sports injury, and renal sciences. These specialties are collectively referred to as CONGOR specialties.
When will the shares be listed on stock exchanges?
The equity shares of Paras Healthcare are scheduled to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on October 28. Listing allows investors to trade the shares publicly and provides liquidity to shareholders.
Who are the managers and registrar for this IPO?
JM Financial, BofA Securities India, and Nuvama Wealth Management are the book-running lead managers for the IPO. MUFG Intime India serves as the registrar, handling the administrative aspects of the share issuance and allotment process.
