Park Medi World IPO opens Dec 10: GMP at 20%; 5 key risks you should know

Park Medi World IPO: The initial public offering (IPO) of Park Medi World, a private hospital chain based in North India, will open for public subscription on Wednesday, December 10, 2025. The initial public offering (IPO) worth ₹920 crore is a combination of a fresh issue of 47.5 million shares amounting to ₹770 crore and an offer for sale (OFS) of 9.3 million shares amounting to ₹150 crore.

 

Park Medi World IPO will be offered at a price band of ₹154 to ₹162 per share. The minimum application size has been set at 92 shares per lot. The issue will remain open for subscription till Friday, December 12, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Wednesday, December 17, 2025.

 

Under the OFS, Ajit Gupta is the only promoter selling shareholder.

 

Kfin Technologies is the registrar for the issue. Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services are the book-running lead managers.

Park Medi World IPO GMP

On Monday, December 8, the unlisted shares of Park Medi World were trading at ₹193 in the grey market, commanding a premium of ₹33 or 20 per cent from the upper end price of ₹162. 

Here are the key risks associated with investing in Park Medi World:

Contingent liabilities: According to the Red Herring Prospectus (RHP), as of September 30, 2025, contingent liabilities (excluding corporate guarantees) represented 11.66 per cent of the company’s net worth, while corporate guarantees extended by the company and its subsidiaries accounted for 71.58 per cent of net worth. If these obligations were to materialise, they could negatively impact the company’s financial condition, results of operations, and cash flows.

 

Credit rating updates: Any downgrade in credit ratings could increase borrowing costs and impact the company’s business and financial condition. CARE Ratings downgraded the company’s long-term facilities from CARE A- (Stable) to CARE BBB+ (Stable) in December 2024, later removing the rating in January 2025. BRL downgraded fund-based facilities to BWR B+ (Stable) by May 2025, which was subsequently withdrawn in August 2025, as the facilities had been repaid.

 

Human resource challenges: Park Medi World is highly dependent on doctors, nurses, medical professionals, and support staff for its operations and overall performance. As of September 30, 2025, the attrition rate for doctors was 33.72 per cent. Given the high demand and limited availability of skilled medical professionals in India, the company faces challenges in attracting and retaining senior doctors. Failure to do so could adversely affect the company’s business.

 

Revenue concentration: A significant share of the company's revenue comes from hospitals in Haryana, contributing 69.06 per cent, 74.62 per cent, 73.43 per cent, 76.92 per cent and 83.91 per cent of operating revenue in the six months ended September 30, 2025 and September 30, 2024, and FY25, FY24 and FY23, respectively. With eight of its 14 hospitals located in Haryana, any adverse developments in these facilities or within the state could impact the company’s financial condition.

 

Risks in expansion strategy: As per the RHP, the company may not be able to complete or realise the expected benefits of current or future acquisitions, or fully integrate newly acquired hospitals into its network, which could affect its business and prospects. As of September 30, 2025, the company had acquired eight hospitals in North India, adding 1,650 beds, and intends to continue pursuing acquisition-led expansion.