Paras Healthcare IPO Day 2: Subscribed 0.25x; Retail at 1.13x, QIB still nil
- Paras Healthcare IPO overall subscription stands at 0.25x as of Day 2 close.
- Retail investors drove demand, subscribing 1.13x of their quota.
- QIB participation remained at 0.00x, with no institutional bids received.
- NII (bHNI) subscription rose to 0.24x, while NII (sHNI) stood at 0.09x.
*this image is generated using AI for illustrative purposes only.
Paras Healthcare IPO saw retail investors drive demand to 1.13x on Day 2, lifting overall subscription to 0.25x. QIB participation remained at zero, marking a stark contrast with the retail segment's steady accumulation.
Subscription Status
The issue witnessed a gradual build-up in retail interest over the first two days, with the Retail category being the sole segment to cross full subscription of its reserved quota. Institutional and high-net-worth participation remains negligible, with QIBs recording no bids and NII segments staying well below their respective limits.
Subscription Progression
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 21-10-2026 | 0.00x | 0.09x | 0.04x | 0.44x | 0.09x |
| Day 2 | 22-10-2026 | 0.00x | 0.24x | 0.09x | 1.13x | 0.25x |
Intra-day Timeline on 22-10-2026
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:30 | 0.00x | 0.20x | 1.00x | 0.21x |
| 12:30 | 0.00x | 0.22x | 1.07x | 0.23x |
| 13:30 | 0.00x | 0.24x | 1.13x | 0.25x |
The standout intraday moves on Day 2 included a +20.0% jump in NII (bHNI) subscription and a +13.0% increase in Retail bids between the 11:30 and 13:30 snapshots. The overall total subscription rose by +19.0% during this period, reflecting a modest but consistent uptick in retail confidence.
Category-wise Breakdown
Retail: Leading the charge, Retail subscriptions climbed from 0.44x on Day 1 to 1.13x by the end of Day 2. This category remains the only one to have fully subscribed its portion, indicating strong individual investor interest despite broader market caution.
Non-Institutional Buyers (NII): The NII segment shows limited engagement. Big HNIs (bHNI) moved up to 0.24x from 0.09x on Day 1, while Small HNIs (sHNI) stood at 0.09x, up slightly from 0.04x on Day 1. Both sub-categories remain significantly under-subscribed.
Qualified Institutional Buyers (QIB): Institutional demand is virtually non-existent, with QIB subscription standing at 0.00x throughout Day 1 and Day 2. The absence of anchor or institutional backing continues to weigh on the overall subscription multiple.
Employees: The employee quota recorded no subscription activity, remaining at 0.00x.
Offer Details
| Detail | Value |
|---|---|
| Price Band | ₹660.00 – ₹693.00 per share |
| Minimum Bid Quantity | 21 shares |
| Issue Open Date | 21 October 2026 |
| Issue Close Date | 23 October 2026 |
| Allotment Date | 26 October 2026 |
| Listing Date | 28 October 2026 |
About the Company
Paras Health is a clinical specialty-led hospital platform providing tertiary and quaternary healthcare services through a network of eight hospitals with an aggregate bed capacity of 2,211 beds across North India, Bihar, and Jharkhand. Operating in five states and one union territory, the company has a 20-year 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, while EBITDA expanded at a CAGR of 47.41% over the same period. The company plans to expand its total bed capacity to 3,011 beds by March 2028 through greenfield and brownfield additions in Gurugram and Ludhiana. It is led by Dr. Dharminder Kumar Nagar (MD) and Dr. Kapil Garg (Director).
Financial Highlights
| Metric | FY2026 (₹ crore) | FY2025 (₹ crore) | FY2024 (₹ crore) |
|---|---|---|---|
| Revenue from Operations | 1,605.95 | 1,294.06 | 1,129.04 |
| Total Revenue | 1,628.78 | 1,314.21 | 1,151.02 |
| Profit Before Tax | 76.03 | -50.04 | 6.63 |
| Total Profit | 43.83 | -57.98 | -15.33 |
| Total Assets | 2,071.14 | 1,810.45 | 1,477.66 |
| Total Equity | 394.94 | 280.49 | 338.51 |
Objects of the Issue
- 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 in debt to repay or prepay borrowings availed by PMHPL, reducing consolidated indebtedness.
- General Corporate Purposes: Balance net proceeds towards organic and inorganic growth, capital expenditure, marketing, working capital, and business development initiatives.
Risk Factors
- History of Losses and Uncertain Profitability: The company incurred consolidated losses of ₹(579.83) million in FY2025 and ₹(153.31) million in FY2024, primarily due to ramp-up costs at new hospitals, and had the lowest RoCE and RoE compared to listed peers.
- Substantial Indebtedness: Outstanding fund-based borrowings were ₹9,394.67 million as of August 31, 2026, with finance costs of ₹1,159.78 million in FY2026 and an interest coverage ratio that declined to 0.75x in FY2025.
- High Attrition Rates: Overall attrition rates for healthcare professionals were 60.38% in FY2026, 66.74% in FY2025, and 65.27% in FY2024, with retainers and consultants fees accounting for ~25% of total expenses.
- Geographic Concentration: Five of eight hospitals are in North India, contributing approximately 66–68% of revenue from operations, exposing the company to regional risks including the April 2025 Pahalgam terror attack that briefly disrupted Srinagar Hospital operations.
- Dependence on Leased Premises: Six hospitals operate on leased premises contributing 60–61% of revenue, with lease deeds for Panchkula, Darbhanga, Ranchi, and Srinagar hospitals being unregistered and thus of limited evidentiary value.
How might the complete absence of QIB bids influence Paras Healthcare's post-listing price stability and institutional coverage on Day 1?
Will the significant debt prepayment funded by IPO proceeds be sufficient to improve the interest coverage ratio above 1.0x in the upcoming fiscal year?
What strategies is management implementing to reduce the 60%+ healthcare professional attrition rate to protect margins as bed capacity expands?
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