Shares of Park Medi World, a prominent North Indian hospital chain, made a disappointing debut on the stock exchanges on Wednesday, December 17, 2025. The company's initial public offering (IPO), which aimed to raise ₹920 crore, listed at a discount to its issue price, contrary to the positive sentiment seen in the grey market prior to listing.
A Subdued Market Entry
On the National Stock Exchange (NSE), Park Medi World's share price was listed at ₹158 per share. This represented a decline of 2.5% from its issue price of ₹162, which was the upper end of the ₹154-162 price band. The picture was even weaker on the Bombay Stock Exchange (BSE), where the stock began trading at ₹155.60, marking a steeper fall of 3.95% from the issue price.
This muted debut defied the indications from the grey market premium (GMP), a unofficial indicator of investor sentiment. In the days leading to the listing, the GMP for Park Medi World stood at ₹5 per share, hinting at a potential listing price of around ₹167—a premium of about 3%. The actual listing performance, therefore, fell short of street expectations.
Strong Subscription Meets Weak Listing
The weak listing is notable given the strong subscription numbers the IPO attracted during its bidding period from December 10 to December 12. The public issue was oversubscribed 8.53 times overall. Demand was particularly robust from institutional investors. The portion reserved for Qualified Institutional Buyers (QIBs) was booked 12.07 times, while the Non-Institutional Investor (NII) segment saw a hefty subscription of 15.93 times. The retail investor portion was subscribed 3.32 times.
In total, the company received bids for 33.88 crore equity shares against the 3.97 crore shares on offer. The allotment for the IPO was finalized on December 15.
IPO Details and Use of Proceeds
Park Medi World's IPO comprised a fresh issue of 4.75 crore shares aggregating to ₹770 crore and an offer for sale (OFS) of 0.93 crore shares worth ₹150 crore by existing shareholders. Prior to the IPO opening, the company had already secured ₹276 crore from anchor investors on December 9.
The company has outlined clear plans for the proceeds from the fresh issue. A significant portion, ₹380 crore, is earmarked for repayment of borrowings taken by the company and its subsidiaries. Furthermore, ₹60.50 crore will be used to set up a new hospital and expand current facilities, including those of a subsidiary. An additional ₹27.46 crore is allocated for the purchase of medical equipment. The remaining funds will be utilized for general corporate purposes and potential inorganic expansion opportunities.
As per SEBI norms, 50% of the offer was reserved for QIBs, 35% for retail investors, and 15% for NIIs. The minimum application size was set at one lot of 92 shares, requiring retail investors to invest at least ₹14,904.
About Park Medi World: A Growing Healthcare Player
Park Medi World is a significant player in the Indian healthcare sector. It is the second-largest private hospital operator in North India and the largest private hospital chain in Haryana, with a total bed capacity of 3,000 beds as of March 31, 2025. The company operates 14 multi-super specialty hospitals, all accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH).
The company has been on an aggressive expansion path. Its total bed count has grown from 2,550 beds in March 2023 to 3,250 beds by September 30, 2025. This growth trajectory is expected to continue with new hospitals under development in Ambala, Panchkula, Rohtak, New Delhi, Gorakhpur, and Kanpur.
Financially, the company reported a profit of ₹213 crore on revenue of ₹1,426 crore for the fiscal year 2025 (FY25). This shows an improvement from the ₹152 crore profit on ₹1,263 crore revenue in FY24, though it still trails the ₹228 crore profit reported in FY23.
The book-running lead managers for the issue were Nuvama Wealth Management, CLSA India, DAM Capital, and Intensive Fiscal Services. KFin Technologies acted as the registrar to the issue.
