Paras Healthcare IPO: Hospital Occupancy, Profit and What Investors Should Check Before Bidding

The Paras Healthcare IPO comes from a hospital chain with 8 hospitals, 2,211 beds, 1,084 doctors and 1,937 nurses, of which 7 of the 8 hospitals are NABH accredited. The issue is mostly an offer for sale, which means about 65.5% of the issue size goes to selling shareholders and not to the company (my calculation), while the fresh issue is meant mainly to cut debt.

This article on the Paras Healthcare IPO covers the issue terms, how hospital occupancy and profit changed over three years, what the company will do with the fresh money, the subscription status, the risks and the dates. It is educational and not a recommendation to apply for the issue.

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Paras Healthcare IPO: Issue Details and Dates

Paras Healthcare IPO: item	Detail
Total issue size of the Paras Healthcare IPO	Rs 1,450 crore
Fresh issue and offer for sale	Rs 500 crore fresh issue and Rs 950 crore offer for sale
Price band of the Paras Healthcare IPO	Rs 660 to Rs 693 per share
Lot size	21 shares, or Rs 14,553 at the upper band
Retail limit	Up to 13 lots, about Rs 1.89 lakh at the upper band (my calculation)
Bidding window	21 Oct to 23 Oct 2026
Basis of allotment	26 Oct 2026
Refunds	27 Oct 2026
Listing	28 Oct 2026 on BSE and NSE
Lead managers	JM Financial, BofA Securities and Nuvama
Registrar	MUFG Intime (Link Intime)

Of the Rs 500 crore fresh issue, Rs 320.90 crore is meant to repay debt and Rs 54.10 crore goes to the subsidiary that runs the Srinagar hospital, a total of Rs 375 crore or 75% of the fresh issue (my calculation). The rest is for general corporate purposes. Because the offer for sale proceeds go to existing shareholders, the Paras Healthcare IPO adds less growth capital than its headline size suggests.

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Paras Healthcare IPO: Occupancy and Profit Turnaround

Paras Healthcare IPO: measure (Rs crore)	FY24	FY25	FY26	Q1 FY27
Revenue	1,129.04	1,294.06	1,605.95	470.28
EBITDA	Not stated in the pages I read	156.46	335.58	113.48
Profit after tax	-15.33	-57.98	43.83	49.68
Hospital occupancy	52.46%	50.78%	61.75%	Not stated

Revenue grew about 14.6% in FY25 and about 24.1% in FY26 (my calculation), while EBITDA more than doubled in FY26 and the margin moved from about 12.1% to about 20.9% (my calculation). Occupied bed days rose 25.8% to 338,321, according to SBI Securities. In Q1 FY27 the profit of Rs 49.68 crore was already above the full FY26 profit of Rs 43.83 crore, on an EBITDA margin of about 24.1% (my calculation). A single strong quarter is not a trend, and I read the profit swing as partly the effect of fixed hospital costs spread over more occupied beds, which can also work in reverse if occupancy slips.

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Risk: The Paras Healthcare IPO profit comes after two years of losses, so one year of profit does not prove the turnaround will last.

Paras Healthcare IPO: Subscription Status and Analyst Views

Paras Healthcare IPO: category	Around 12:30 PM on 21 Oct 2026
Total subscription	About 0.08 to 0.09 times
Retail individual investors	About 0.41 to 0.43 times
Non-institutional investors	About 0.04 to 0.07 times
Qualified institutional buyers	Nil at that time

These are early figures from two reports at slightly different times, so the exact numbers differ, and institutions usually bid on the last day, so day-1 subscription status says little about the final outcome. SBI Securities has a Neutral view on the Paras Healthcare IPO and Ventura has a Subscribe view. I did not find the issue valuation or the implied market capitalisation in the pages I read, so I cannot say whether the price band is high or low against listed hospital peers.

Network and Business Behind the Paras Healthcare IPO

Paras Healthcare IPO: network item	Detail
Hospitals and beds	8 hospitals and 2,211 beds, an average of about 276 beds per hospital (my calculation)
Doctors and nurses	1,084 doctors and 1,937 nurses
Accreditation	7 of 8 hospitals are NABH accredited
Regional spread	North India contributed 66.07% of FY26 revenue
Subsidiaries with losses	The Ranchi and Srinagar subsidiaries reported losses

The business is concentrated in North India, so a local regulatory change, a competitor opening nearby or a slowdown in one city has more effect than it would for a pan-India chain. The Srinagar and Ranchi units are newer, and the loss in those subsidiaries is part of why the fresh issue includes money for the Srinagar subsidiary.

A practical way to read the Paras Healthcare IPO is to separate the operating story from the deal structure. The operating story is better occupancy, better margins and a first profit, while the deal structure is a large offer for sale and debt repayment. An applicant who likes the first part but dislikes the second can wait for the listing and judge the stock at the traded price, which is a choice and not a recommendation.

Risks in the Paras Healthcare IPO

Risk: Staff attrition was 60.38% in FY26 and 66.74% in FY25, though it fell to 12.01% in Q1 FY27 (not annualised), and a hospital depends on retaining doctors and nurses.

Risk: Contingent liabilities of Rs 398.44 crore equal 89.55% of net worth, which puts net worth near Rs 445 crore (my calculation), so a loss on these claims would be material.

Risk: Secured borrowings were Rs 990.33 crore at 31 Aug 2026, so interest costs and refinancing matter even after the Rs 320.90 crore debt repayment from the fresh issue.

Risk: A large offer for sale means existing shareholders are selling, which investors should weigh against the growth story.

What to Watch Next for the Paras Healthcare IPO

1. The final subscription status after the close on 23 Oct, in particular QIB and retail demand
2. The basis of allotment on 26 Oct and your allotment status on the registrar's website
3. Refunds on 27 Oct and credit of shares to demat accounts
4. The Paras Healthcare IPO listing on 28 Oct 2026 and the first-day trading

Conclusion

The Paras Healthcare IPO offers a hospital chain whose occupancy rose to 61.75% and whose profit turned positive, but it also carries high attrition, large contingent liabilities, Rs 990.33 crore of secured borrowings and a heavy offer for sale. Day-1 subscription is low and not a signal. Read the offer document, compare the valuation with peers and apply only within your own risk limit.

Frequently Asked Questions

What are the price band and lot size of the Paras Healthcare IPO?

Ans. The price band is Rs 660 to Rs 693 per share and one lot is 21 shares, which is Rs 14,553 at the upper band. Retail investors can bid for up to 13 lots.

When does the Paras Healthcare IPO open, allot and list?

Ans. Bidding runs from 21 Oct to 23 Oct 2026, the basis of allotment is on 26 Oct, refunds are on 27 Oct and listing is proposed for 28 Oct 2026 on BSE and NSE. Dates after the close can change, so check the exchange notices.

How did hospital occupancy and profit change at Paras Healthcare?

Ans. Occupancy was 52.46% in FY24, 50.78% in FY25 and 61.75% in FY26. Profit after tax moved from a loss of Rs 57.98 crore in FY25 to a profit of Rs 43.83 crore in FY26, and Q1 FY27 profit was Rs 49.68 crore.

How will the Paras Healthcare IPO money be used?

Ans. Of the Rs 500 crore fresh issue, Rs 320.90 crore is for repaying debt and Rs 54.10 crore for the Srinagar subsidiary, with the rest for general corporate purposes. The Rs 950 crore offer for sale goes to the selling shareholders and not to the company.

What is the subscription status of the Paras Healthcare IPO on day 1?

Ans. Around 12:30 PM on 21 Oct 2026 the issue was about 0.08 to 0.09 times subscribed, with retail at about 0.42 times and QIBs yet to bid. Institutions often bid on the last day, so early numbers are weak signals.

What are the main risks in the Paras Healthcare IPO?

Ans. The main risks are staff attrition of 60.38% in FY26, contingent liabilities of Rs 398.44 crore, secured borrowings of Rs 990.33 crore and 66.07% of revenue from North India. Losses in the Ranchi and Srinagar subsidiaries are also a concern.

Is the Paras Healthcare IPO worth applying for?

Ans. That depends on your risk limit and view of the valuation, which I could not find in the pages I read. SBI Securities rates it Neutral and Ventura says Subscribe, so brokers disagree. Read the offer document before bidding.

Is this article investment advice?

Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.