North India region-based healthcare private hospital chain Paras Healthcare Private Ltd is working with the experts for the initial public offering (IPO) worth INR 1000 Cr, according to the Moneycontrol sources. This transaction may help progress the growth plans, and also some small exit exits for existing shareholders especially Creador, which is a private equity fund focusing on Southeast Asia and South Asia.
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Exit Strategy for Creador
Creator, which holds nearly the same amount of shares as Paras Healthcare, is predicted to dispose of all their holding in Paras Healthcare during the IPO, which makes up to INR 800 Cr of the total offering. The rest of the money flies towards primary capital, the hospital chain’s projects of expansions.
Valuation and Structure
At a nascent stage of discussions, media sources are quoted to be estimating that Paras Healthcare could be valued somewhere between INR 3500 Cr to 4000 Cr mark that is supposed to be even higher during the IPO. Still, the authorities warned diversification may be needed as the company may change its plans before the final decision.
Previous Attempts and Current Momentum
This move follows earlier efforts by Creador to divest its stake, with reports emerging in May 2023 that the fund had engaged an investment bank for this purpose. Paras Healthcare and Creador remained unavailable for comment at the time of reporting.
Paras Healthcare: A Brief Overview
Established in 2006 with its inaugural facility in Gurugram, Paras Healthcare presently operates seven multi-super speciality hospitals branded as ‘Paras Health.’ With a total of 1,700 beds across locations in Haryana, Bihar, Rajasthan, Jharkhand, and Jammu & Kashmir, the chain is poised for further expansion into Uttar Pradesh.
Financial Performance and Market Presence
According to a report by Care Ratings, Paras Healthcare’s consolidated operating revenue surged by 17% to INR 918 Cr in FY23 compared to the previous fiscal year. The chain predominantly derives revenue from critical therapeutic segments such as Cancer care, Orthopedics & joint replacement, Cardiology, and Neurosurgery.
Disclaimer
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[With Inputs from Moneycontrol]
