IPO-Bound Paras Healthcare Plans to Expand Bed Capacity by 36% to 3,011 by FY28
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The Gurugram-based hospital chain, which filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in June, is awaiting regulatory approval to launch the public issue.
Paras Healthcare Ltd plans to increase its bed capacity by approximately 36% to 3,011 beds by March 2028 from 2,211 beds as of March 31, 2026, as it pursues an expansion strategy focused on North India while preparing for its proposed Rs 1,800 crore initial public offering (IPO).
The Gurugram-based hospital chain, which filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in June, is awaiting regulatory approval to launch the public issue.
According to the draft papers, Paras Healthcare will add a 300-bed hospital in Gurugram during FY27 and a 500-bed facility in Ludhiana in FY28. Both hospitals will be developed under long-term lease arrangements as part of the company's asset-light expansion strategy.
Operating under the Paras Health brand, the company currently runs eight hospitals across five states and one Union Territory. It said its expansion strategy prioritizes markets with low hospital bed density, limited access to advanced tertiary and quaternary care, and improving economic fundamentals.
Paras Healthcare said its growth plans are driven by financial return thresholds, balance sheet strength, and disciplined capital deployment. As of March 31, 2026, the company reported capital expenditure of Rs 7.63 million per bed, reflecting its focus on optimizing capital investment while expanding capacity.
The company follows a hybrid operating model that combines owned and leased facilities. Six of its eight hospitals operate from leased premises, while the network also includes revenue-sharing arrangements, long-term leases, and a public-private partnership (PPP) model.
Its hospital infrastructure is designed to improve capital efficiency through optimized clinical-to-non-clinical space ratios, a higher proportion of shared rooms, compact administrative spaces, and outsourcing of non-core services such as laundry and transportation.
Specialty services including cardiac sciences, oncology, neurosciences, gastro sciences, orthopedics and sports injury, and renal sciences accounted for 74.7% of the company's revenue from operations in FY26, up from 71.92% in FY25 and 72.34% in FY24.
The proposed IPO comprises a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale (OFS) of shares worth up to Rs 1,300 crore. The company plans to use proceeds from the fresh issue to repay certain borrowings, invest in its wholly owned subsidiary PMHPL for debt repayment, and meet general corporate purposes.
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