Paras Healthcare IPO: Occupancy, execution key monitorable, say analysts

Paras Healthcare ₹1,450 crore IPO opened for bidding on Wednesday, and the issue received largely bullish views from brokerages, with analysts highlighting that the is well positioned to benefit from increasing healthcare demand in its operating regions

 

Brokerage view

 

SBI Securities

 

The brokerage assigned a Neutral rating to the IPO, noting that for the firm, going forward, growth is expected to be supported by rising occupancy in newer hospitals, expansion of high-acuity specialties and planned capacity additions at Gurugram and Ludhiana. However, the company's high dependence on government schemes and PSU patients, coupled with regulatory and pricing-related uncertainties in the healthcare sector, remains a key monitorable. While the company is well positioned to benefit from increasing healthcare demand in its operating regions, “we assign a Neutral rating to the issue and would like to track occupancy levels, execution of upcoming capacity additions and the impact of regulatory developments over the next few quarters post listing,” it said.

 

 

The brokerage added that, PHL has demonstrated strong improvement in operating metrics with bed occupancy increasing to 61.8 per cent in FY26 from 50.8 per cent in FY25 while occupied bed days grew 25.8 per cent y-o-y to 3,38,321. 

 

The improvement reflects stronger patient throughput, increasing acceptance of its specialty offerings and better utilization of existing infrastructure, providing headroom for growth without significant incremental capital deployment, SBI Securities said.

 

Ventura

 

The brokerage firm gave a ‘Subscribe’ rating to the IPO, noting that the company also has scope for brownfield additions at existing hospitals, has acquired land adjacent to its Panchkula facility for future expansion, and may selectively evaluate inorganic opportunities where they improve regional scale or operating leverage.

 

It added that Paras Healthcare’s hospitals focus on high-acuity specialties including cardiac sciences, oncology, neurosciences, gastro sciences, orthopedics and sports injury, and renal sciences. The company has built a strong presence across North India, Bihar and Jharkhand, with a strategy focused on markets where organised private healthcare penetration remains relatively low.

 

IPO Details

 

Paras Healthcare IPO is a book-built issue of ₹1,450 crores. The issue is a combination of a fresh issue of 72.15 lakh shares aggregating to ₹500 crores and an offer for sale of 1.37 crore shares aggregating to ₹950 crores.

 

Paras Healthcare IPO bidding opened for subscription on Oct 21, 2026 and will close on Oct 23, 2026. 

 

Paras Healthcare IPO is set issue price band at ₹660 to ₹693 per share. The lot size for an application is 21 shares. The minimum amount of investment required by an individual investor is ₹14,553 

 

JM Financial Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.

 

IPO Subscription details

 

As of 12:20 PM, Paras Healthcare IPO is subscribed 0.09 times. The public issue was subscribed 0.43 times in the retail category, with no bids in the QIB category, and 0.04 times in the NII category 

  

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.