Synopsis
Park Medi World plans a ₹770 crore IPO to repay debt and fund expansion, with its promoter stake to decrease. Despite a marginal dip in margins and average length of stay, the hospital chain maintains profitability above peers. However, geographic concentration and lower average revenue per occupied bed present potential risks for investors.
Agencies Considering the post-IPO equity and profit for FY25, the price-to-earnings (P/E) multiple works out to be 33, compared with 49-70 for its peers including Narayana Hrudayalaya Yatharth Hospital & Trauma Care Services, Krishna Institute of Medical Sciences and Jupiter Lifeline Hospitals. Considering annualised profit for FY26, P/E comes to be 25, compared with 39-96 for its peers.
ET Intelligence Group: Park Medi World, a private hospital chain, plans to raise ₹770 crore through a fresh issue to repay debt and fund capital expenditure. It will also raise ₹150 crore through an offer for sale. The promoter group’s stake will fall to 82.9% after the IPO from 95.6%. It has continued to increase bed capacity over the past three years. Its operating margin before depreciation and amortisation (Ebitda margin) and average length of stay (ALOS) has declined marginally over FY23-25, but it is still above that of peers. It primarily operates in North India with over 70% revenue coming from Haryana, signalling geographic concentration. In addition, average revenue per occupied bed (ARPOB) remains below that of peers. Given these factors, investors with high-risk appetite may consider the IPO.
Business
Incorporated in 2011, Park Medi World is the second largest private hospital chain in North India and the largest private hospital chain in Haryana in terms of bed capacity as of March 2025. It operates 14 multi-super specialty hospitals under the ‘Park’ brand, offering over 30 super specialty and specialty services, including internal medicine, neurology, urology, gastroenterology, general surgery, orthopedics and oncology. Internal medicine speciality contributes over 30% to the total revenue. Though gross block per bed, which denotes the initial cost of a hospital’s fixed assets for each available patient bed, increased to ₹34 lakh crore in FY25 from ₹20.7 lakh in FY23, it continued to remain lower than ₹49 lakh-₹1 crore for peers. It also had a higher average occupancy of 68% in September 2025, compared with 51-66% for peers.
Agencies Soft Vitals North India’s 2nd largest private hospital chain’s revenue per occupied bed i
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