IPO-bound Paras Healthcare raised Rs 652.5 crore from anchor investors on October 19, a day ahead of the opening of its maiden public issue.
The investors included Abu Dhabi Investment Authority, BlackRock Global Funds, Eastspring Investments, Government Pension Fund Global, Natixis International Funds, Integrated Core Strategies (Asia) and Citigroup Global.
The IPO will open for subscription on October 21 and close on October 23, with the price band set at Rs 660-693 per share. The company aims to raise Rs 1,450 crore through the issue, comprising a fresh issue of shares worth Rs 500 crore and an offer for sale (OFS) of Rs 950 crore.
The domestic mutual funds participating in the anchor allocation included SBI Mutual Fund, HDFC AMC, ICICI Prudential AMC, Kotak Mahindra AMC, WhiteOak Capital, Motilal Oswal AMC, Edelweiss, Baroda BNP Paribas Mutual Fund and ITI Mutual Fund.
Insurance companies also participated in the anchor book. ICICI Prudential Life Insurance, Edelweiss Life Insurance and Canara HSBC Life Insurance together acquired 6.49 lakh shares worth Rs 45 crore.
Under the OFS, promoter Dharminder Kumar Nagar will sell shares worth Rs 300 crore, while Commelina, an affiliate of private equity firm Creador, will offload shares worth Rs 650 crore.
Paras Healthcare, which operates eight hospitals under the Paras brand, allotted 94.15 lakh equity shares to 21 institutional investors through its anchor book on Monday. Of these, nine domestic mutual funds received 55.55 lakh shares worth Rs 385 crore through 24 schemes, the company said in an exchange filing.
Paras Healthcare provides tertiary and quaternary healthcare services through eight hospitals with a combined capacity of 2,211 beds across North India, Bihar and Jharkhand. The company plans to expand its network by adding a 300-bed hospital in Gurugram and a 500-bed facility in Ludhiana. The two hospitals are expected to become operational in the current and next financial years, respectively.
According to the company's red herring prospectus (RHP), the expansion will take its total bed capacity to 3,011 by March 2028.
Of the Rs 500 crore to be raised through the fresh issue, Paras Healthcare plans to use Rs 375 crore to repay a portion of its debt. The remaining proceeds will be allocated towards general corporate purposes. JM Financial, BofA Securities India and Nuvama Wealth Management are the merchant bankers managing the Paras Healthcare IPO.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.