Paras Healthcare Limited's ₹1,450 crore initial public offering follows a return to profit, but a longer payment cycle and hospital spending put its cash generation under scrutiny.
Of the shares on offer, ₹500 crore are new shares that will raise money for Paras. The other ₹950 crore are being sold by Paras Managing Director and promoter Dr. Dharminder Kumar Nagar and investor Commelina Ltd.; those proceeds go to the sellers. Paras plans to use ₹320.9 crore of the new-share proceeds to repay its borrowings and ₹54.1 crore to help repay debt at its Srinagar subsidiary. Borrowings excluding leases stood at ₹888.9 crore on June 30, 2026.
The hospital operator reported ₹43.8 crore in net profit for fiscal 2026 after a ₹58 crore loss the previous year. Occupancy rose from 50.78% in fiscal 2025 to 61.75% in fiscal 2026, then reached 69.72% in the quarter ended June 30. Net profit for that quarter was ₹49.7 crore.
Paras's trade-receivable measure increased from 46.38 days in fiscal 2024 to 66.36 days in fiscal 2026. The company attributed the increase mainly to growth in its operations and longer payment cycles for credit customers, particularly government schemes and public-sector undertakings. Those two sources accounted for 41.28% of revenue in fiscal 2026, up from 29.76% two years earlier, and 43.63% in the June quarter.
In fiscal 2026, Paras generated ₹163.5 crore in operating cash flow and paid ₹169.4 crore for property, equipment and intangible assets. It had 1,502 operational beds across eight hospitals on June 30. Its larger figure of 2,211 beds represents total capacity for which civil structure was planned; the occupancy rates are based on operational beds.
Paras plans a 300-bed hospital in Gurugram in fiscal 2027 and a hospital of up to 500 beds in Ludhiana in fiscal 2028. Its draft filing says its Srinagar hospital began operations 14 months later than initially planned, while its Kanpur hospital began generating revenue 12 months late, following approval delays. The company warns that new hospitals may take time to reach planned occupancy.
Bidding is scheduled to close Oct. 23 at 7:30 a.m. ET (11:30 UTC).
