Paras Healthcare Ltd IPO
Status: Closed
Overview
IPO date
21 Oct 2026 to 23 Oct 2026
Face value
₹ 1 per share
Price
₹ 660 to ₹693 per share
Issue Size
20,923,520 shares
(aggregating up to ₹ 1450 Cr)
(aggregating up to ₹ 1450 Cr)
Allotment Date
26 Oct 2026
Listing at
NSE
Issue type
Book Building
Sector
Healthcare
Unlock Stock of the Month
T&C*
Strengths vs Risks of Paras Healthcare Ltd
Know the pros & cons
Strengths
- One of the Largest Healthcare Providers in North India, Bihar and Jharkhand with a First Mover Advantage and a Well-Recognized Brand.
- Strong Focus on Tertiary and Quaternary Care with High Contribution from CONGOR Specialties.
- Capital-Efficient and Flexible Operating Model with Disciplined Expansion.
- Delivering High-Quality Clinical Care Through Renowned Clinicians, Supported with Modern Equipment.
- Digital Technology Enabling Clinical Effectiveness, Patient Experience and Operational Efficiencies.
- Doctor-Led Professional Management Team with Proven Execution Capabilities.
Risks
- The Company has incurred losses during the three months period ended June 30, 2025 and Fiscals 2025 and 2024 of Rs. (10.24) million, Rs. (579.83) million and Rs. (153.31) million, respectively, on a consolidated basis. While the company were profitable in the three months period ended June 30, 2026 and Fiscal 2026, its cannot assure you that the company will continue to remain profitable in the future.
- The company's Subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited have collectively incurred a loss of Rs. (203.82) million, Rs. (520.89) million, Rs. (822.38) million and Rs. (872.69) million during the three months period ended June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively. Its cannot assure you that these Subsidiaries will turn profitable in the future.
- The company is highly dependent on doctors, nurses, other healthcare professionals and housekeeping and support staff for its operations. The company has experienced high attrition rates of 12.01%, 16.09%, 60.38%, 66.74% and 65.27% in the three months period ended June 30, 2026 and June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively. If the company is unable to reduce or manage the attrition rates of these professionals, its business, results of operations and financial condition may be adversely affected.
- Five of the company's eight hospitals are located in North India. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, the revenue from these hospitals accounted for 68.07%, 66.89%, 66.07%, 68.40% and 67.33% of its revenue from operations, respectively. Any adverse developments affecting these hospitals or the regions in which they are located could affect the company's business, results of operations and financial condition.
- The name of one of the members of our Promoter Group, Harbaksh Singh Khangura appears in the CIBIL wilful defaulter database, and there is no guarantee that his name will be removed from the CIBIL defaulter database or that he will not be subject to any adverse proceedings or rulings in the future.
- We generate a significant portion of our revenue from the provision of cardiac sciences, oncology sciences, neuro sciences, gastro sciences, orthopedics and sports injury and renal sciences (collectively, "CONGOR") specialties, which contributed 74.35%, 75.30%, 74.70%, 71.92% and 72.34% of our revenue from operations in the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, respectively. Any adverse developments in the demand for such services could adversely affect our business, results of operations and financial condition.
- The provision of healthcare services involves high costs such as employee benefit expenses, retainers and consultants fee and purchases of stock-in-trade, which together accounted for 66.13%, 64.40%, 65.08%, 63.69% and 66.95% of our total expenses in the three months period ended June 30, 2026 and June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively. If we fail to pass on these costs to patients, our business, results of operations and financial condition could be adversely affected.
- We conduct the operations of six of our eight hospitals on leased premises. We operate certain hospitals through revenue share arrangements and long-term leases, and we operate one hospital pursuant to a public-private partnership arrangement. Any adverse developments in our relationships with our lessors or counterparties, or our inability to renew such arrangements, could adversely affect our business, financial condition and results of operations.
- We have certain contingent liabilities that have been disclosed in our financial statements, which if they materialize, may adversely affect our results of operations, cash flows and financial condition. Our contingent liabilities, as of June 30, 2026, constituted 89.55% of our net worth.
- There are outstanding litigations against our Company, Subsidiaries, Promoter, Directors, Key Managerial Personnel and Senior Management, and there were certain regulatory and statutory proceedings initiated against our Promoter and Directors in the past. Any adverse decision in such proceedings, or similar instances in the future may render us or them liable for penalties, and may adversely affect our business, cash flows and reputation.
- Our empanelments with government health schemes have been subject to adverse actions in the past, including suspension and temporary restrictions, and we may experience such instances in the future, which may adversely affect our business and results of operations.
- We have experienced delays in construction or commencement of operations at our hospitals in the past (for example, our Srinagar Hospital, Kanpur Hospital and Ranchi Hospital), and we may not be successful in expanding our hospital network, developing our proposed hospitals or achieving the operating capacities that we anticipate in a timely manner or at all, which could adversely affect our business, results of operations, financial condition and prospects.
- We operate in a highly regulated industry, and changes in laws, regulations and pricing norms, as well as any non-compliance with applicable regulatory requirements, could adversely affect our business, results of operations and financial condition.
- Our operations are subject to anti-corruption and anti-money laundering laws and regulations. Any actions involving our hospitals in this regard may have a negative effect on our business.
- Our number of operational beds is lower than our total bed capacity. As of June 30, 2026, June 30, 2025, March 31, 2026, March 31, 2025 and March 31, 2024, our operational beds comprised 67.93%, 68.62%, 67.93%, 68.62% and 62.39% of our total bed capacity, respectively. We cannot assure you that we will be able to increase our operational beds to fully and efficiently utilise our total bed capacity, which could adversely affect our business, results of operations and financial condition.
- We are dependent on revenue generated from our in-patient department, which comprised 78.25%, 78.93%, 78.26%, 79.46% and 81.71% of our revenue from operations in the three months period ended June 30, 2026 and June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively; and we experienced a decrease in our occupancy rate from 52.46% in Fiscal 2024 to 50.78% in Fiscal 2025. Any inability to maintain or improve our admissions or hospital occupancy rates could adversely affect our business, financial condition, results of operations, cash flows and prospects.
- Any failure to obtain or renew approvals, licenses, registrations and permits required to operate our business in a timely manner, or at all, may adversely affect our business, results of operations and financial condition.
- Delays in receiving payment of outstanding dues from third parties, especially under government schemes and from PSUs may adversely affect our business and results of operations.
- We have incurred substantial indebtedness, which requires significant cash flows to service and limits our ability to operate with flexibility. As of August 31, 2026, our outstanding fund-based borrowings on a consolidated basis were ? 9,394.67 million. Our inability to meet our obligations, including financial and other covenants under our debt financing arrangements, could adversely affect our business, results of operations and financial condition.
- We do not own a registered trademark for the word/ brand "Paras" and there is no formal arrangement governing the use of the "Paras" name/ brand by members of our Promoter Group. Our inability to protect or use the "Paras Health" and other brands or our intellectual property rights or comply with intellectual property rights of others may have an adverse effect on our business and reputation.
- Our Subsidiaries, PHRPL and PMHPL have availed unsecured loans from our Company during the three months period ended June 30, 2026 and the last three Fiscals for their operations. We cannot assure you that our Subsidiaries will be able to repay such loans, which may have an adverse impact on our business, financial condition and results of operations.
- Our credit rating in Fiscal 2024 was placed under rating watch, and our credit ratings were downgraded in Fiscal 2025. Any further downgrade in our credit ratings could increase borrowing costs and adversely affect our business, results of operations, financial condition and cash flows.
- Our Statutory Auditors have included emphasis of matter paragraphs in their audit reports as of and for the three months period ended June 30, 2026 and June 30, 2025. Further, our Statutory Auditors have included certain remarks in relation to the feature of recording audit trail (edit log) facility in the accounting software used by our Company in their audit reports for the years ended March 31, 2026, March 31, 2025 and March 31, 2024, pursuant to the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014. We cannot assure you that similar remarks will not form part of our financial statements in the future, which could have an adverse effect on our reputation, the trading price of our Equity Shares, results of operations, financial condition and cash flows.
- Our Subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited have reported a negative net worth in the past and may continue to do so in the future, which could adversely affect our business, financial condition, results of operations and cash flows.
- There have been delays in payment of statutory dues by our Company and our Subsidiaries in the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026 and 2025. An inability to make timely payments could result in us paying interest for the delay in payment of statutory dues, which could adversely affect our business, our results of operations and financial condition.
- While our Company will receive proceeds from the Fresh Issue, we will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the entire proceeds from the Offer for Sale (after deducting applicable Offer expenses).
- Our business depends on the strength of the 'Paras Health' brand and reputation, and any negative publicity or allegations against us, including in the media, may adversely affect trust in our services, as well as our business, financial condition, results of operations and prospects.
- We have been, and may in the future be, subject to various operational, reputational, medical and legal claims or other actions arising from the provision of healthcare services, and may be subject to liabilities arising from claims of medical negligence, which could have a material adverse impact on our business, cash flows and results of operations.
- Our advertising, marketing and outreach expenses accounted for 2.72%, 2.22%, 2.44%, 2.78% and 2.17% of our total expenses in the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, respectively, and if we are unable to maintain and enhance our brand and reputation, our business, results of operations and prospects may be adversely affected.
- We may be unsuccessful in introducing new clinical programs at our hospitals, which could adversely affect our business and prospects.
- Our business is dependent on our ability to constantly upgrade our information technology platform and medical equipment and any inability to continually enhance our offerings with new technology and medical equipment may lead to a decline in demand for our services and adversely affect our business and prospects.
- We source our supplies and equipment from third party suppliers. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, the top 10 suppliers / vendors of our Company accounted for 26.51%, 33.18%, 31.37%, 37.40% and 25.10% of the total supplies and equipment sourced from third parties, respectively. Failure of such third parties to meet their obligations could adversely affect our business, results of operations and cash flows.
- We derive a portion of our income from sale of products at our pharmacies. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, revenue from sale of product - pharmacy accounted for 3.57%, 3.69%, 3.79%, 3.66% and 3.70% of our revenue from operations, respectively. Any adverse impact on our pharmacy operations could affect our business, results of operations and financial condition.
- If the medicines that we purchase from third-parties and sell to patients are adulterated or counterfeit, we may be subject to legal claims or other actions and our business and reputation may be adversely affected.
- We face competition from other hospitals, pharmacies, diagnostic chains and healthcare services providers and our inability to compete effectively may adversely affect our business, results of operations and financial condition.
- Our hospitals are susceptible to risks arising on account of fire, natural disasters such as floods or other accidents, and man-made incidents. Any such event may have a material adverse impact on our business, financial condition, results of operations and prospects.
- In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, our expenses towards repair and maintenance of buildings, plant and equipments and others constituted 3.03%, 3.19%, 3.03%, 2.37% and 2.36% of our total expenses, respectively. Failure or malfunction of our medical equipment or hospital infrastructure could adversely affect our ability to conduct our operations.
- We rely on our information technology platform for the operation of our business, and any disruption to our systems or cyber-security incidents could adversely affect our business, results of operations, financial condition and reputation.
- Our Promoter will continue to be our largest Shareholder post completion of this Offer, and will be able to exercise substantial control over our Company, which will allow him to influence the outcome of matters submitted for approval of our Shareholders. This may involve potential conflicts of interest with other Shareholders.
- We are unable to trace some of our historical corporate records and corporate filings. Additionally, there are certain factual inaccuracies and discrepancies in some of our corporate records and corporate filings. We cannot assure you that no legal proceedings or regulatory actions will be initiated against our Company in the future in relation to these matters, which may impact our financial condition and reputation.
- Failure to establish and maintain effective internal controls and compliance systems could adversely affect our business, financial condition and reputation.
- If our hospitals do not receive the number of patients that we expect, our business, results of operations and financial condition may be adversely affected.
- Various challenges currently faced by the healthcare industry in India may adversely affect our business, results of operations and financial condition.
- We are dependent on a number of key personnel, including our Promoter, Directors, Key Managerial Personnel and Senior Management, and the loss of, or our inability to attract or retain such persons could adversely affect our business, results of operations and financial condition.
- The company enters into arrangements with third-party service providers, who provide the company with services such as laundry, housekeeping, patient food and beverage, outsourced medical services and security, amongst others. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, the company's expenses towards these third-party services constituted 6.40%, 6.28%, 6.04%, 8.22% and 9.15% of its total expenses, respectively. Any deficiencies in the quality of services provided by such third-party service providers, operational lapses, non-compliance with applicable laws, including labour laws, revision of service fees, sub-contracting arrangements, or termination or non-renewal of such arrangements may adversely affect the company's business, cash flows and results of operations.
- The company is required to provide performance guarantees to various government authorities in accordance with their standard contractual terms for empanelment of their customers. In the event such guarantees are invoked, the company's business, cash flows and results of operations may be adversely affected.
- While the company currently does not have any significant obligations to provide free beds or to subsidize its services for economically weaker sections of society, any imposition by State Governments to provide healthcare at subsidized prices may adversely affect the company's business and results of operations.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- The weighted average cost of acquisition of Equity Shares held by the company's Promoter and the Selling Shareholders may be less than the Offer Price.
- The company's insurance coverage may not be sufficient or may not adequately protect it against all material hazards, which may adversely affect the company's business, results of operations and financial condition.
- The company may be subject to labour unrest, slowdowns and work stoppages, which could affect its business and reputation.
- The company faces foreign exchange risks and have outstanding obligations under the Export Promotion Capital Goods ("EPCG") Scheme. As of June 30, 2026, the company had a pending export obligation of Rs. 1,008.43 million and duty saved of Rs. 253.94 million. If the company fails to fulfil its export obligations within the prescribed timeframe, the company may be required to repay the duty saved together with simple interest at the rate of 15% per annum, which could adversely affect its results of operations, financial condition and cash flows.
- The company has entered into related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with equity shareholders.
- The company's Promoter, certain of its Directors and Key Managerial Personnel hold Equity Shares in the Company and is therefore interested in its performance in addition to their remuneration and reimbursement of expenses.
- Certain of the company's Directors namely, Saurabh Sood, Dharminder Kumar Nagar and Kapil Garg does not have prior experience of holding a directorship in a company listed on the Stock Exchanges.
- The company has included certain Non-GAAP Measures and other industry measures related to its operations and financial performance in this Red Herring Prospectus. These Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian healthcare industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Certain sections of this Red Herring Prospectus disclose information from the CRISIL Report which is a paid report and commissioned by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company quarterly results may fluctuate for a variety of reasons and may not fully reflect the underlying performance of its business.
- The company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company's financing arrangements.
- Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may consider them material to their assessment of the company's financial condition.
Paras Healthcare Ltd Peer Comparison
Understand the company’s industry standing
Paras Healthcare Ltd
Aster DM Quality Care Limited
Apollo Hospitals Enterprise Limited ("AHEL")
Face Value
1
10
5
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1605.952
4643.22
25228.5
EPS-Basis
4.34
7.53
135.04
EPS-Diluted
4.34
7.52
134.94
NAV Per Share
39.11
88.32
657.58
P/E-Basic EPS
---
91.89
59.36
P/E-Diluted EPS
---
---
---
RONW(%)
12.98
9.7
21.95
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 21 Oct 2026 & closes on 23 Oct 2026.
Paras Healthcare Limited was incorporated as Arbian Frozen Foods Private Limited', a Private Limited Company, pursuant to a Certificate of Incorporation dated December 21, 1987, issued by the RoC. Company became a deemed public company with effect from July 1, 1993, and the name was changed to 'Arbian Frozen Foods Limited'. Company was re-converted from a deemed public company to a Private Limited Company and the name of Company was changed to Arbian Frozen Foods Private Limited' and the Certificate of Incorporation was endorsed by the RoC on June 16, 2003. Subsequently, Company name was changed from Arbian Frozen Foods Private Limited' to Paras Healthcare Private Limited' by the RoC on July 21, 2003. Company was converted from a Private Company to a Public Company, and name was changed to 'Paras Healthcare Limited', vide fresh Certificate of Incorporation on July 18, 2024.
The Company has eight hospitals that it operate under the 'Paras Health' brand, which are spread across five states and one union territory in North India - Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur, Uttar Pradesh; Udaipur, Rajasthan; Ranchi, Jharkhand; and Srinagar in the Union Territory of Jammu and Kashmir.
The Company established first hospital in Gurugram, Haryana in 2006 with 200 beds to provide affordable, accessible and quality healthcare services in North India and serve patients with compassion. Since then, it set up hospitals and focused on ramping up the operations. The hospital in Gurugram was the first corporate hospital entrant among the Peers in 2006 in the city and hospital in Srinagar is the largest private hospital in the city in terms of bed capacity with 200 beds.
In July 2017, Commelina Ltd (an affiliate of Creador, global private equity firm) acquired a stake in the Company. In October 2022, the Company acquired Plus Medicare Hospitals Private Limited at Udaipur. Thereafter, the Company commenced operations at Srinagar hospital in 2023 with 200 bed capacity and at Kanpur in 2024 with 435 bed capacity. The Company increased bed capacity from 1,250 beds as of March 31, 2022 to 2,135 beds as of March 31, 2024.
The Company' offer several clinical specialties across the hospitals including cardiac sciences, oncology, neurosciences, gastrosciences and orthopedics and joint replacement. It has established centres of excellence across the hospitals, where the Company provide clinical specialties and these centres have been instrumental in launching new programs including organ transplant programs.
Paras Healthcare Ltd IPO will close on 23 Oct 2026.
- One of the Largest Healthcare Providers in North India, Bihar and Jharkhand with a First Mover Advantage and a Well-Recognized Brand.
- Strong Focus on Tertiary and Quaternary Care with High Contribution from CONGOR Specialties.
- Capital-Efficient and Flexible Operating Model with Disciplined Expansion.
- Delivering High-Quality Clinical Care Through Renowned Clinicians, Supported with Modern Equipment.
- Digital Technology Enabling Clinical Effectiveness, Patient Experience and Operational Efficiencies.
- Doctor-Led Professional Management Team with Proven Execution Capabilities.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Dharminder Kumar Nagar | 73519238 | 72.8 | 69190233 | 63.95 |
| 2 | Gurdeep Kaur Nagar | 1 | --- | 1 | --- |
| 3 | Ranya Nagar | 1 | --- | 1 | --- |
- The Company has incurred losses during the three months period ended June 30, 2025 and Fiscals 2025 and 2024 of Rs. (10.24) million, Rs. (579.83) million and Rs. (153.31) million, respectively, on a consolidated basis. While the company were profitable in the three months period ended June 30, 2026 and Fiscal 2026, its cannot assure you that the company will continue to remain profitable in the future.
- The company's Subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited have collectively incurred a loss of Rs. (203.82) million, Rs. (520.89) million, Rs. (822.38) million and Rs. (872.69) million during the three months period ended June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively. Its cannot assure you that these Subsidiaries will turn profitable in the future.
- The company is highly dependent on doctors, nurses, other healthcare professionals and housekeeping and support staff for its operations. The company has experienced high attrition rates of 12.01%, 16.09%, 60.38%, 66.74% and 65.27% in the three months period ended June 30, 2026 and June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively. If the company is unable to reduce or manage the attrition rates of these professionals, its business, results of operations and financial condition may be adversely affected.
- Five of the company's eight hospitals are located in North India. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, the revenue from these hospitals accounted for 68.07%, 66.89%, 66.07%, 68.40% and 67.33% of its revenue from operations, respectively. Any adverse developments affecting these hospitals or the regions in which they are located could affect the company's business, results of operations and financial condition.
- The name of one of the members of our Promoter Group, Harbaksh Singh Khangura appears in the CIBIL wilful defaulter database, and there is no guarantee that his name will be removed from the CIBIL defaulter database or that he will not be subject to any adverse proceedings or rulings in the future.
- We generate a significant portion of our revenue from the provision of cardiac sciences, oncology sciences, neuro sciences, gastro sciences, orthopedics and sports injury and renal sciences (collectively, "CONGOR") specialties, which contributed 74.35%, 75.30%, 74.70%, 71.92% and 72.34% of our revenue from operations in the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, respectively. Any adverse developments in the demand for such services could adversely affect our business, results of operations and financial condition.
- The provision of healthcare services involves high costs such as employee benefit expenses, retainers and consultants fee and purchases of stock-in-trade, which together accounted for 66.13%, 64.40%, 65.08%, 63.69% and 66.95% of our total expenses in the three months period ended June 30, 2026 and June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively. If we fail to pass on these costs to patients, our business, results of operations and financial condition could be adversely affected.
- We conduct the operations of six of our eight hospitals on leased premises. We operate certain hospitals through revenue share arrangements and long-term leases, and we operate one hospital pursuant to a public-private partnership arrangement. Any adverse developments in our relationships with our lessors or counterparties, or our inability to renew such arrangements, could adversely affect our business, financial condition and results of operations.
- We have certain contingent liabilities that have been disclosed in our financial statements, which if they materialize, may adversely affect our results of operations, cash flows and financial condition. Our contingent liabilities, as of June 30, 2026, constituted 89.55% of our net worth.
- There are outstanding litigations against our Company, Subsidiaries, Promoter, Directors, Key Managerial Personnel and Senior Management, and there were certain regulatory and statutory proceedings initiated against our Promoter and Directors in the past. Any adverse decision in such proceedings, or similar instances in the future may render us or them liable for penalties, and may adversely affect our business, cash flows and reputation.
- Our empanelments with government health schemes have been subject to adverse actions in the past, including suspension and temporary restrictions, and we may experience such instances in the future, which may adversely affect our business and results of operations.
- We have experienced delays in construction or commencement of operations at our hospitals in the past (for example, our Srinagar Hospital, Kanpur Hospital and Ranchi Hospital), and we may not be successful in expanding our hospital network, developing our proposed hospitals or achieving the operating capacities that we anticipate in a timely manner or at all, which could adversely affect our business, results of operations, financial condition and prospects.
- We operate in a highly regulated industry, and changes in laws, regulations and pricing norms, as well as any non-compliance with applicable regulatory requirements, could adversely affect our business, results of operations and financial condition.
- Our operations are subject to anti-corruption and anti-money laundering laws and regulations. Any actions involving our hospitals in this regard may have a negative effect on our business.
- Our number of operational beds is lower than our total bed capacity. As of June 30, 2026, June 30, 2025, March 31, 2026, March 31, 2025 and March 31, 2024, our operational beds comprised 67.93%, 68.62%, 67.93%, 68.62% and 62.39% of our total bed capacity, respectively. We cannot assure you that we will be able to increase our operational beds to fully and efficiently utilise our total bed capacity, which could adversely affect our business, results of operations and financial condition.
- We are dependent on revenue generated from our in-patient department, which comprised 78.25%, 78.93%, 78.26%, 79.46% and 81.71% of our revenue from operations in the three months period ended June 30, 2026 and June 30, 2025 and in Fiscals 2026, 2025 and 2024, respectively; and we experienced a decrease in our occupancy rate from 52.46% in Fiscal 2024 to 50.78% in Fiscal 2025. Any inability to maintain or improve our admissions or hospital occupancy rates could adversely affect our business, financial condition, results of operations, cash flows and prospects.
- Any failure to obtain or renew approvals, licenses, registrations and permits required to operate our business in a timely manner, or at all, may adversely affect our business, results of operations and financial condition.
- Delays in receiving payment of outstanding dues from third parties, especially under government schemes and from PSUs may adversely affect our business and results of operations.
- We have incurred substantial indebtedness, which requires significant cash flows to service and limits our ability to operate with flexibility. As of August 31, 2026, our outstanding fund-based borrowings on a consolidated basis were ? 9,394.67 million. Our inability to meet our obligations, including financial and other covenants under our debt financing arrangements, could adversely affect our business, results of operations and financial condition.
- We do not own a registered trademark for the word/ brand "Paras" and there is no formal arrangement governing the use of the "Paras" name/ brand by members of our Promoter Group. Our inability to protect or use the "Paras Health" and other brands or our intellectual property rights or comply with intellectual property rights of others may have an adverse effect on our business and reputation.
- Our Subsidiaries, PHRPL and PMHPL have availed unsecured loans from our Company during the three months period ended June 30, 2026 and the last three Fiscals for their operations. We cannot assure you that our Subsidiaries will be able to repay such loans, which may have an adverse impact on our business, financial condition and results of operations.
- Our credit rating in Fiscal 2024 was placed under rating watch, and our credit ratings were downgraded in Fiscal 2025. Any further downgrade in our credit ratings could increase borrowing costs and adversely affect our business, results of operations, financial condition and cash flows.
- Our Statutory Auditors have included emphasis of matter paragraphs in their audit reports as of and for the three months period ended June 30, 2026 and June 30, 2025. Further, our Statutory Auditors have included certain remarks in relation to the feature of recording audit trail (edit log) facility in the accounting software used by our Company in their audit reports for the years ended March 31, 2026, March 31, 2025 and March 31, 2024, pursuant to the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014. We cannot assure you that similar remarks will not form part of our financial statements in the future, which could have an adverse effect on our reputation, the trading price of our Equity Shares, results of operations, financial condition and cash flows.
- Our Subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited have reported a negative net worth in the past and may continue to do so in the future, which could adversely affect our business, financial condition, results of operations and cash flows.
- There have been delays in payment of statutory dues by our Company and our Subsidiaries in the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026 and 2025. An inability to make timely payments could result in us paying interest for the delay in payment of statutory dues, which could adversely affect our business, our results of operations and financial condition.
- While our Company will receive proceeds from the Fresh Issue, we will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the entire proceeds from the Offer for Sale (after deducting applicable Offer expenses).
- Our business depends on the strength of the 'Paras Health' brand and reputation, and any negative publicity or allegations against us, including in the media, may adversely affect trust in our services, as well as our business, financial condition, results of operations and prospects.
- We have been, and may in the future be, subject to various operational, reputational, medical and legal claims or other actions arising from the provision of healthcare services, and may be subject to liabilities arising from claims of medical negligence, which could have a material adverse impact on our business, cash flows and results of operations.
- Our advertising, marketing and outreach expenses accounted for 2.72%, 2.22%, 2.44%, 2.78% and 2.17% of our total expenses in the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, respectively, and if we are unable to maintain and enhance our brand and reputation, our business, results of operations and prospects may be adversely affected.
- We may be unsuccessful in introducing new clinical programs at our hospitals, which could adversely affect our business and prospects.
- Our business is dependent on our ability to constantly upgrade our information technology platform and medical equipment and any inability to continually enhance our offerings with new technology and medical equipment may lead to a decline in demand for our services and adversely affect our business and prospects.
- We source our supplies and equipment from third party suppliers. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, the top 10 suppliers / vendors of our Company accounted for 26.51%, 33.18%, 31.37%, 37.40% and 25.10% of the total supplies and equipment sourced from third parties, respectively. Failure of such third parties to meet their obligations could adversely affect our business, results of operations and cash flows.
- We derive a portion of our income from sale of products at our pharmacies. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, revenue from sale of product - pharmacy accounted for 3.57%, 3.69%, 3.79%, 3.66% and 3.70% of our revenue from operations, respectively. Any adverse impact on our pharmacy operations could affect our business, results of operations and financial condition.
- If the medicines that we purchase from third-parties and sell to patients are adulterated or counterfeit, we may be subject to legal claims or other actions and our business and reputation may be adversely affected.
- We face competition from other hospitals, pharmacies, diagnostic chains and healthcare services providers and our inability to compete effectively may adversely affect our business, results of operations and financial condition.
- Our hospitals are susceptible to risks arising on account of fire, natural disasters such as floods or other accidents, and man-made incidents. Any such event may have a material adverse impact on our business, financial condition, results of operations and prospects.
- In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, our expenses towards repair and maintenance of buildings, plant and equipments and others constituted 3.03%, 3.19%, 3.03%, 2.37% and 2.36% of our total expenses, respectively. Failure or malfunction of our medical equipment or hospital infrastructure could adversely affect our ability to conduct our operations.
- We rely on our information technology platform for the operation of our business, and any disruption to our systems or cyber-security incidents could adversely affect our business, results of operations, financial condition and reputation.
- Our Promoter will continue to be our largest Shareholder post completion of this Offer, and will be able to exercise substantial control over our Company, which will allow him to influence the outcome of matters submitted for approval of our Shareholders. This may involve potential conflicts of interest with other Shareholders.
- We are unable to trace some of our historical corporate records and corporate filings. Additionally, there are certain factual inaccuracies and discrepancies in some of our corporate records and corporate filings. We cannot assure you that no legal proceedings or regulatory actions will be initiated against our Company in the future in relation to these matters, which may impact our financial condition and reputation.
- Failure to establish and maintain effective internal controls and compliance systems could adversely affect our business, financial condition and reputation.
- If our hospitals do not receive the number of patients that we expect, our business, results of operations and financial condition may be adversely affected.
- Various challenges currently faced by the healthcare industry in India may adversely affect our business, results of operations and financial condition.
- We are dependent on a number of key personnel, including our Promoter, Directors, Key Managerial Personnel and Senior Management, and the loss of, or our inability to attract or retain such persons could adversely affect our business, results of operations and financial condition.
- The company enters into arrangements with third-party service providers, who provide the company with services such as laundry, housekeeping, patient food and beverage, outsourced medical services and security, amongst others. In the three months period ended June 30, 2026 and June 30, 2025 and Fiscals 2026, 2025 and 2024, the company's expenses towards these third-party services constituted 6.40%, 6.28%, 6.04%, 8.22% and 9.15% of its total expenses, respectively. Any deficiencies in the quality of services provided by such third-party service providers, operational lapses, non-compliance with applicable laws, including labour laws, revision of service fees, sub-contracting arrangements, or termination or non-renewal of such arrangements may adversely affect the company's business, cash flows and results of operations.
- The company is required to provide performance guarantees to various government authorities in accordance with their standard contractual terms for empanelment of their customers. In the event such guarantees are invoked, the company's business, cash flows and results of operations may be adversely affected.
- While the company currently does not have any significant obligations to provide free beds or to subsidize its services for economically weaker sections of society, any imposition by State Governments to provide healthcare at subsidized prices may adversely affect the company's business and results of operations.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- The weighted average cost of acquisition of Equity Shares held by the company's Promoter and the Selling Shareholders may be less than the Offer Price.
- The company's insurance coverage may not be sufficient or may not adequately protect it against all material hazards, which may adversely affect the company's business, results of operations and financial condition.
- The company may be subject to labour unrest, slowdowns and work stoppages, which could affect its business and reputation.
- The company faces foreign exchange risks and have outstanding obligations under the Export Promotion Capital Goods ("EPCG") Scheme. As of June 30, 2026, the company had a pending export obligation of Rs. 1,008.43 million and duty saved of Rs. 253.94 million. If the company fails to fulfil its export obligations within the prescribed timeframe, the company may be required to repay the duty saved together with simple interest at the rate of 15% per annum, which could adversely affect its results of operations, financial condition and cash flows.
- The company has entered into related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with equity shareholders.
- The company's Promoter, certain of its Directors and Key Managerial Personnel hold Equity Shares in the Company and is therefore interested in its performance in addition to their remuneration and reimbursement of expenses.
- Certain of the company's Directors namely, Saurabh Sood, Dharminder Kumar Nagar and Kapil Garg does not have prior experience of holding a directorship in a company listed on the Stock Exchanges.
- The company has included certain Non-GAAP Measures and other industry measures related to its operations and financial performance in this Red Herring Prospectus. These Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian healthcare industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Certain sections of this Red Herring Prospectus disclose information from the CRISIL Report which is a paid report and commissioned by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company quarterly results may fluctuate for a variety of reasons and may not fully reflect the underlying performance of its business.
- The company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company's financing arrangements.
- Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may consider them material to their assessment of the company's financial condition.
The Issue type of Paras Healthcare Ltd is Book Building.
The minimum application for shares of Paras Healthcare Ltd is 21.
The total shares issue of Paras Healthcare Ltd is 20923520.
Initial public offering of up to 20,923,520 equity shares of face value of Re. 1 each of Paras Healthcare Limited (the "Company" or the "Issuer") for cash at a price of Rs. 693 per equity share (including a share premium of Rs. 692 per equity share) ("Offer Price") aggregating up to Rs. 1450 Crores (the "Offer") comprising a fresh issue of up to 7,215,007 equity shares of face value of Re. 1 each aggregating up to Rs. 500.00 Crores by the company (the "Fresh Issue") and an offer for sale of up to 13,708,513 equity shares of face value of Rs. 1 each ("Offered Shares") aggregating up to Rs. 950 Crores comprising up to 4,329,004 equity shares of face value of Re. 1 each aggregating up to Rs. 300 Crores by Dharminder Kumar Nagar (the "Promoter Selling Shareholder") and up to 9,379,509 equity shares of face value of Re. 1 each aggregating up to Rs. 650 Crores by Commelina Ltd (the "Investor Selling Shareholder", and together with the promoter selling shareholder, the "Selling Shareholders") (such offer for sale of equity shares of face value of
Re. 1 each by the selling shareholders, the "Offer for Sale"). The offer shall constitute [*]% of the post-offer paid-up equity share capital of the company.
Price Band: Rs. 693 per equity share of face value of Rs. 1 each.
The floor price is 693 times of the face value of the equity shares.
Bids can be made for a minimum of 21 equity shares of face value of Rs. 1 each and in multiples of 21 equity shares of face value of Rs. 1 each thereafter.