Park Medi World Limited has initiated a postal ballot to seek shareholder approval for altering the objects of its Initial Public Offer (IPO) proceeds. The company proposes to redirect INR 648.32 million in unutilised funds toward the acquisition of V3 Healthcare Private Limited, which operates The Medicity Hospital, Rudrapur. This strategic reallocation aims to accelerate revenue generation by deploying capital into an operational asset rather than continuing construction on partially funded projects. E-voting for the special resolution commenced on August 05, 2026, and concludes on September 03, 2026.

The move addresses the underutilisation of funds allocated to two original IPO objects: hospital development in NCR (Object 2) and medical equipment procurement (Object 3). As per the prospectus dated December 12, 2025, Park Medi World raised INR 7,700 million through a fresh issue and an offer for sale. After deducting issue expenses of INR 567.23 million, net proceeds amounted to INR 7,132.77 million. The company has already fully utilised funds for repayment of borrowings (INR 3,800 million) and unidentified inorganic acquisitions (INR 2,453.18 million).

IPO Proceeds Utilisation Status

The following table outlines the utilisation status of the IPO proceeds as disclosed in the postal ballot notice:

Proposed Variation: Acquisition of The Medicity Hospital

The Board of Directors approved the proposal on August 03, 2026, to combine the unutilised balances from Objects 2 and 3 — totalling INR 648.32 million — into a new Object 5. This amount will fund the capital expenditure for acquiring The Medicity Hospital, Rudrapur. The facility is a NABH-accredited, multi-super speciality institution with a capacity of 330 beds, situated on approximately 7,000 square meters of land with 1.64 lakh square feet of covered area.

Management argues that this acquisition represents a more efficient allocation of capital compared to the original timeline for the Rohtak hospital project. By shifting funds to an operational asset, the company expects to realise economic benefits sooner while maintaining a prudent capital structure. Term borrowings stood at INR 282 million as of March 31, 2026. The revised timeline for utilising the redirected funds is FY 2026-27.

Regulatory Compliance and Voting Process

The postal ballot notice was dispatched electronically on August 04, 2026, to shareholders registered as of the cut-off date, July 31, 2026. The voting process is facilitated through National Securities Depository Limited (NSDL). A newspaper advertisement confirming the dispatch was published on August 05, 2026, in ‘Financial Express’ and ‘Jansatta’, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Since more than 75% of the IPO proceeds have been utilised toward original objects, the conditions for an exit offer under Regulation 59 read with Schedule XX of the SEBI ICDR Regulations, 2018, do not apply. The results of the postal ballot are expected to be announced on or before September 07, 2026. No directors voted against the proposed variation.

Park Medi World reported a consolidated net profit of ₹885.93 million for the quarter ended June 30, 2026, marking a 34% year-on-year increase from ₹655.06 million in Q1FY25. The growth was driven by a 19% rise in revenue from operations to ₹4,757.09 million, supported by the integration of new hospital capacities and operational efficiencies across its network of 17 hospitals and 4,290 beds.

The Board of Directors approved the financial results on August 03, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors Agiwal & Associates issued an unmodified limited review report on both standalone and consolidated statements. The company also disclosed the acquisition of Mehar Hospital-Zirakpur from Mehar Mediserve LLP for an all-cash consideration of approximately ₹1,070 million, aimed at deepening its presence in the Tricity cluster.

Financial Performance

Consolidated revenue from operations grew to ₹4,757.09 million in Q1FY27, compared to ₹3,988.45 million in the prior year period. Profit before tax stood at ₹1,050.84 million, up from ₹818.99 million. EBITDA increased by 20% to ₹1,260.88 million from ₹1,049.31 million in Q1FY25. Total comprehensive income attributable to owners of the parent was ₹819.38 million. Basic earnings per share (EPS) increased to ₹2.05 from ₹1.70 in the corresponding quarter last year.

Standalone results showed more modest growth, with net profit after tax at ₹10.84 million versus ₹48.97 million in Q1FY25. Standalone revenue from operations rose 46% YoY to ₹335.32 million from ₹229.69 million, though other income declined significantly from ₹82.69 million in Q4FY25 to ₹46.68 million in Q1FY26.

Strategic Acquisitions and Expansion

The company executed a definitive agreement to acquire 100% stake in Mehar Mediserve LLP, which operates Mehar Hospital-Zirakpur, a 150+ bed multi-super speciality facility. The transaction is valued at ₹1,070 million and is expected to be commissioned under the Park brand by November 2026. This acquisition complements existing facilities in Mohali, Panchkula, Patiala, and Bathinda, reinforcing the group’s cluster-based strategy in Punjab.

As a subsequent event, Park Medi World acquired an 80% shareholding in V3 Healthcare Private Limited on July 31, 2026, for approximately ₹1,770 million. V3 operates The Medicity Hospital-Rudrapur, a 330-bed facility in Uttarakhand, which launched on August 2, 2026. The remaining 20% stake will be acquired by April 30, 2030.

Capacity Additions and IPO Utilization

The group has added approximately 1,500 beds in the past twelve months, representing a 46% capacity expansion. Key launches include a 350-bed hospital in Panchkula (April 2026) and the upcoming expansion of Park Hospital in Palam Vihar, Gurugram, branded as "Park Hospital Platinum," adding 100 beds by November 2026 at a cost of ₹250 million funded from internal accruals. RGS Healthcare Limited’s Mohali unit is also expanding from 350 to 500 beds at a cost of ₹400 million.

Regarding IPO proceeds, ₹6,484.45 million out of ₹7,132.77 million planned for specific objects has been utilized as of June 30, 2026. The remaining ₹648.32 million is pending utilization for capital expenditure on new hospitals and medical equipment. The Board proposed a variation in the objects of IPO proceeds, subject to shareholder approval via postal ballot.