Paras Healthcare, which operates hospitals under the Paras Health brand, raised US$88.6M from anchor investors ahead of its US$19.7-crore initial public offering (IPO).
The IPO opened for public bids on 21 October. The company allotted 94,15,584 shares to 39 funds at US$9.41 per share: the upper end of its US$8.96–US$9.41 price band.
The Abu Dhabi Investment Authority (ADIA) unit Stable was allocated 10.73% of the anchor investment portion.
IPO structure
The offering comprises a US$6.79-crore fresh issue and a US$12.9-crore offer for sale, making it largely a partial exit for existing shareholders.
Proceeds from the fresh issue will primarily go towards debt repayment, including borrowings at subsidiary Plus Medicare Hospitals.
Firm operators
The Delhi-based hospital operator runs eight hospitals with a combined capacity of 2,211 beds. Its backers include private equity firm Creador and 360 ONE.
JM Financial, BofA Securities India and Nuvama Wealth Management are managing the offering, which will list on the BSE and NSE.
Why?
The IPO follows a strong year for Indian hospital listings.
Temasek-backed Manipal Health raised US$1.26B in July, with its shares debuting about 11% above the offer price, signalling investor appetite for large hospital network.
Risks
Paras Healthcare reduced the size of its offering from an originally proposed US$244.4 million, putting the final level of demand and pricing under scrutiny. The anchor allocation at the top of the price band is a positive signal, but does not guarantee strong public subscription or listing gains.
Signal
Mid-sized hospital chains are testing public markets following high-profile sector debuts.
Paras is significantly smaller than Manipal, making investor demand for its shares a useful gauge of appetite for hospital operators beyond India’s largest networks.
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