Paras Healthcare IPO Fully Subscribed on Day Three of Bidding

The initial public offering of Gurugram-based Paras Healthcare reached 1.25 times subscription by the afternoon of the third day. The public issue, which includes a fresh issue and an offer-for-sale, is scheduled to close on October 23.

The initial public offering (IPO) of Paras Healthcare was fully subscribed on the third day of bidding, according to National Stock Exchange (NSE) data recorded till 15:00 hours. The public issue received bids for 1,50,71,364 equity shares against 1,20,83,331 shares on offer, registering an overall subscription of 1.25 times.

Data shows that the quota allocated for non-institutional investors garnered a 55 per cent subscription during the bidding process. Prior to the public opening, the Gurugram-based firm raised ₹652.5 crore from anchor investors on Monday. Notable institutional investors that participated in the anchor round included the Abu Dhabi Investment Authority, BlackRock, and Eastspring Investments.

The company has fixed the IPO price band at ₹660 to ₹693 per share. The public issue is set to conclude on October 23. Ahead of the launch, the firm had reduced its overall issue size from the ₹1,800 crore that was planned earlier.

The IPO comprises a fresh issue of equity shares worth ₹500 crore, alongside an offer-for-sale (OFS) of shares worth ₹950 crore by promoter Dharminder Kumar Nagar and investor Commelina Ltd. According to the company's disclosures, the net proceeds generated from the fresh issue will be utilized primarily to repay debt.

Paras Healthcare currently operates a network of eight hospitals with a presence across five states and one Union Territory. Following the conclusion of the bidding process, the equity shares are tentatively scheduled to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on October 28.

JM Financial, BofA Securities India, and Nuvama Wealth Management are acting as the book-running lead managers for the issue.

"The partial revision of the issue size and the steady participation from anchor investors like BlackRock and the Abu Dhabi Investment Authority reflect careful navigation of current capital market conditions. For healthcare enterprises looking at public markets, using net proceeds to clean up the balance sheet by paying off debt is a prudent strategy to improve long-term financial stability. It will be crucial to observe how retail and institutional segments close out the bidding by October 23." — Dr. Shishir Gupta, Founder & CEO, StartupLanes