Paras Healthcare IPO witnessed a tepid response on its first day of subscription, closing with an overall take-up of 0.08x. Retail investors emerged as the primary source of demand, subscribing to 0.41x of their quota, while QIBs registered zero bids and NIIs remained largely inactive.

Subscription Status

The issue opened on October 21, 2026, and faced immediate headwinds as institutional interest failed to materialize. By the end of Day 1, the total subscription stood at a mere 0.08x, driven almost entirely by retail participation. The lack of anchor or institutional support suggests cautious market sentiment towards the healthcare provider's valuation and financial profile.

Intra-day Timeline

The intra-day data indicates that demand did not pick up significantly throughout the trading day, with the final snapshot reflecting the initial levels of interest.

Category-wise Breakdown

Retail investors were the sole category showing notable activity, albeit still below full subscription. The Non-Institutional Investor segment split between small HNIs (sHNI) and big HNIs (bHNI) showed marginal uptake, while Qualified Institutional Buyers (QIBs) did not place any bids by the end of the first day.

• Retail: 0.41x
• NII (sHNI): 0.02x
• NII (bHNI): 0.07x
• QIB: 0.00x

Offer Details

Paras Healthcare is offering shares in a price band of ₹660 to ₹693 per share. The minimum bid quantity is set at 21 shares. The issue size ranges from ₹14,553 crore to ₹500,000 crore based on the price band. The subscription window opened on October 21, 2026, and will close on October 23, 2026.

About the Company

Paras Health is a clinical specialty-led hospital platform operating eight hospitals with an aggregate bed capacity of 2,211 beds across North India, Bihar, and Jharkhand. The company has a 20-year operating history with a focus on CONGOR specialties (cardiac, oncology, neuro, gastro, orthopedics, and renal sciences), which accounted for ~74% of revenue from operations in Q1 FY2027. Revenue from operations grew at a CAGR of 19.26% from ₹11,290 million in FY2024 to ₹16,060 million in FY2026.

Financial Highlights

The company has shown revenue growth but has struggled with profitability in recent years due to ramp-up costs at new hospitals.

Objects of the Issue

The net proceeds from the issue are intended for:

• Prepayment or Scheduled Re-payment of Outstanding Borrowings: ₹320.90 crore to reduce overall indebtedness and improve the debt-equity ratio.
• Investment in Wholly Owned Subsidiary PMHPL: ₹54.10 crore to repay or prepay borrowings availed by PMHPL.
• General Corporate Purposes: Balance proceeds for organic and inorganic growth, capital expenditure, marketing, working capital, and business development initiatives.

Risk Factors

• History of Losses: The company incurred consolidated losses in FY2025 and FY2024, primarily due to ramp-up costs at new hospitals.
• Substantial Indebtedness: Outstanding fund-based borrowings were ₹9,394.67 million as of August 31, 2026, with an interest coverage ratio of 0.75x in FY2025.
• High Attrition Rates: Overall attrition rates were high at 60.38% in FY2026, posing risks to service quality and revenue generation.
• Geographic Concentration: Five of eight hospitals are in North India, contributing ~66–68% of revenue, exposing the company to regional risks.

What's Next

Allotment for the Paras Healthcare IPO is scheduled for October 26, 2026, with the listing date set for October 28, 2026.