Park Medi World IPO: Hospital Chain Operator Shares Make Weak Debut At Nearly 2% Discount

Park Medi World IPO Listing Today: Park Medi World's shares listed on the NSE and BSE on December 17. Shares of the hospital chain operator made a weak debut on the exchanges. Park Medi World shares listed with nearly 2 per cent discount compared to the issue price.

Park Medi World shares made their debut at Rs 158.8 per share with losses of 1.97 per cent against the issue price of Rs 162 per share. Park Medi World shares listed at Rs 155.6 apiece on the BSE down by 3.95 per cent compared to the issue price.

Retail investors who were allotted a minimum of one lot or 92 shares would have lost at least Rs 588.8 (Rs 162 - Rs 155.6 x 92). As many as 8.8 million shares of Park Medi World changed hands on the BSE and the total market capitalisation of the company stood at Rs 6,720.84 crore.

Park Medi World IPO: Details

Park Medi World raised Rs 920 crore through its public issue. The hospital chain operator’s public issue comprised a fresh issuance of 47.5 million shares amounting to Rs 770 crore and an offer for sale of 9.3 million shares aggregating to Rs 150 crore.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 92 shares, which aggregated to an investment of Rs 14,904. Park Medi World IPO saw decent demand in its three-day subscription window. Park Medi World IPO was subscribed 8.1 times across categories. As many as 338.83 million shares of Park Medi World were bid for against the 41.81 million shares offered for subscription.

In the three-day bidding window, non-institutional investors led the demand for Park Medi World shares, booking their quota 15.15 times. On the other hand, qualified institutional buyers and retail individual investors booked their quota 11.48 times and 3.16 times respectively.

Park Medi World IPO: Objective

Park Medi World will use the proceeds of the public issue for repaying its outstanding borrowings and for developing a new hospital and the expansion of existing hospitals by the company’s subsidiaries. A part of the proceeds will also be used for purchasing capital expenditure for purchase of medical equipment by the company and its subsidiaries and for undertaking unidentified inorganic acquisitions and general corporate purposes.

Park Medi World: Business Model

Park Medi World is a provider of healthcare services, the company’s business model focuses on affordable, multi-super specialty care targeting middle-class segments along with an aggressive "buy and fix" acquisition strategy. The company generates over 70 per cent of its revenue from inpatient services (IPD). The company owns its land, buildings, and high-end medical equipment. The specialties offered by the hospital chain operator include Cardiology, Oncology, and Robotic-Assisted Surgery (using the iMARS system).

Park Medi World: Peers

Park Medi World’s peers include Yatharth Hospital, KIMS Hospitals, Medanta (Global Health), Narayana Health, Jupiter Life Line. The company has no direct listed peers. However, the company does compete with major hospital and healthcare services providers which are listed such as Max Healthcare, Apollo Hospitals and Fortis Healthcare.

At the time of writing, Park Medi World shares traded at Rs 162 .88 apiece up by 2.57 per cent on the NSE. Park Medi World shares traded at Rs 161.60 apiece on the BSE up by 3.86 per cent.