Business Profile of Park Medi World Limited
Park Media World Limited was incorporated in 2011 and it is second largest private hospital chain in north India. It is the largest private hospital chain in Haryana with a total bed capacity of 1600 beds and 3000 beds in north India region. Park Media ltd. operate 13 multi-super specialty hospital under “Park” brand which accredited by NABH out of which seven are accredited by NABL and eight hospital in Punjab, Haryana, Delhi and Rajasthan region. The company provides high quality and affordable medical service across diverse range of specialties such as internal medicine, neurology, urology, general surgery, gastroenterology, orthopedics and oncology. To support critical care hospitals are equipped with 805 ICU beds, 63 operating theaters (OTs) and oxygen generation plant with each location.
Objective of Park Medi World IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 2.00 each aggregating up to ₹ 9,600.00 millions and OFS consists XXXX shares at face value of ₨ 2.00 each aggregating up to ₨ 3,000.00 millions. There are fresh shares issues and OFS by company and main objective of company is repayment of debt, funding capital expenditure for new hospitals & medical equipments requirements, inorganic acquisitions and general corporate expenses.
Details of Park Medi World IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹2.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨12,600.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 9,600.00 million | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 3,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Park Medi World IPO: Issue Price & Size
The issue price of PARK MEDIA WORLD LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 12,600.00 million at the price of ₨XXXX.
Launch Date of Park Medi World IPO
The IPO opening date of PARK MEDI WORLD LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Park Medi World Limited
| S.No. | Particulars (Rs millions) | Ended Sept 30, 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| I | Income | ||||
| Revenue from operations | 6,915.06 | 12,310.66 | 12,545.95 | 10,843.83 | |
| Other income | 159.46 | 320.18 | 175.82 | 95.74 | |
| Total Income | 7,074.52 | 12,630.84 | 12,721.77 | 10,939.57 | |
| II | Expenses | ||||
| Cost of Material consumed / Services rendered | 1,486.82 | 2,468.33 | 1,944.91 | 1,559.77 | |
| Changes in inventory of stores and consumables | -1.95 | 6.18 | 43.20 | 20.80 | |
| Employee benefit expenses | 1,306.80 | 2,319.56 | 2,182.17 | 1,373.57 | |
| Professional and consultancy fees | 934.04 | 1,562.89 | 1,344.65 | 1,188.89 | |
| Finance costs | 305.36 | 703.18 | 506.02 | 398.41 | |
| Depreciation and amortization expense | 275.24 | 505.74 | 405.16 | 350.69 | |
| Other expenses | 1,293.15 | 2,850.69 | 3,127.61 | 3,263.72 | |
| Total Expenses | 5,599.46 | 10,416.57 | 9,553.72 | 8,155.85 | |
| III | Restated profit before exceptional items and tax ( I - II ) | 1,475.06 | 2,214.27 | 3,168.05 | 2,783.72 |
| IV | Less : Exceptional items | - | 32.64 | 17.77 | - |
| V | Restated profit before tax ( III - IV ) | 1,475.06 | 2,181.63 | 3,150.28 | 2,783.72 |
| VI | Tax expenses | ||||
| Current tax | 422.81 | 823.17 | 927.34 | 738.61 | |
| Income tax for earlier years | - | 2.05 | 5.85 | 5.20 | |
| Deferred tax ( benefit ) / charge | -76.65 | -163.66 | -64.77 | 46.11 | |
| 346.16 | 661.56 | 868.42 | 789.92 | ||
| VII | Restated profit after tax ( V - VI ) | 1,128.90 | 1,520.07 | 2,281.86 | 1,993.80 |
Key financial ratios of Park Medi World Limited
| Particulars | Ended Sept 30, 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Restated profit after tax (INR Mn) | 1,128.90 | 1,520.07 | 2,281.86 | 1,993.80 |
| PAT Margin ( % ) | 16.33 % | 12.35 % | 18.19 % | 18.39 % |
| ROCE ( % ) | 9.63 % * | 16.07 % | 26.78 % | 28.89 % |
| ROE ( % ) | 11.38 % * | 18.25 % | 35.82 % | 42.44 % |
| Net debt (INR Mn) | 5,634.05 | 4,093.87 | 4,591.35 | 3,667.19 |
| Debt to Equity ratio | 0.62 | 0.73 | 0.79 | 0.95 |
| EBITDA (INR Mn) | 1,896.20 | 3,103.01 | 3,903.41 | 3,437.08 |
| EBITDA Margin | 27.42% | 25.21% | 31.11% | 31.70% |
Promoters & Shareholding of Park Medi World IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 99.16% shareholding in company.
| S. No. | Name | Pre - Offer Shares | % of shares | Post-Offer Shares | % of shares |
| Promoters | |||||
| 1 | Dr. Ajit Gupta | 345,322,485 | 89.83 | - | - |
| 2 | Dr. Ankit Gupta | 35,874,165 | 9.33 | - | - |
| Total | 381,196 , 650 | 99.16 | - | - | |
| Promoter Group | |||||
| 1 | Nidhi Gupta | 5 | Negligible | - | - |
| Total | 5 | Negligible | - | - |
Should You Subscribe To Park Medi World Limited IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Park Medi World IPO
Healthcare leader in Haryana
Park Media Ltd. have been delivering healthcare services since its incorporation in 2011 and company strong presence in North India region help to understanding of regional cultural and infrastructure requirements. The company is second largest private hospital chain in North India and largest private hospital in chain in Haryana in terms of bed capacity as of September 30, 2024. Over the period company increased its bed capacity from 1875 to 3000 beds in total and out of which 1600 in Haryana.
Affordable high quality healthcare
The company provides high quality healthcare service to large number of patients at efficient cost while maintaining profitability of business. To ensure the affordability of services company use several strategic measures to control operating costs. It consist using modern medical technology to reduce recovery time, full time appointment of doctors and consultants, medical staff and nurses, strong relationship with vendors and leverage economies of scale from company existing network. Efficient management of company resources help to maintain operating cost of business.
Proven acquisition track record
To expand their network company made a successful track record of acquiring and integrating hospitals which help to increased in bed capacity, profitability and revenue of company. The company added 1650 beds in their network through successfully acquisition of seven hospitals in North India. Through these acquisitions company expand its geographic presence in North India and strengthen strategic position to service patients at large. In hospitals company standardize operating procedure to maintain consistent quality and operational efficiency.
Robust financial & operational performance
The company reported second highest EBITDA margin in 2024 among its peers in fiscal 2024, according to CRISIL report. Company maintains its cost efficiencies by leverage economies of scale while consistently delivering strong operational and financial performance. The growth and profitability of company is derived from managing business in cost efficient manner, making strategic decisions and fully utilization of resources. Restated profit after tax of company during six months ended September 30, 2024 and fiscal years of 2024, 2023 and 2022 was ₨1,128.90 million, ₨1520.07 million, ₨2,281.86 million& ₨1,993.80 million, respectively.
Risk Factors of Park Medi World IPO
Regional revenue dependency
The company hospitals in Haryana derive significant revenue (75-80%) from operations which expose Park Media Ltd. to adverse economic and political changes. Any unfavorable development in region may affect demand for healthcare services, and consequently affect revenue of hospitals in region. Political unrest, rules and regulation changes and economic slowdown in area could negatively impact on financial conditions of company.
High cost business
The company business nature involves certain high cost of materials purchased, employee benefit expenses and professional and consultancy fees. They source medical consumables and drugs from third party vendors and profitability of company depends on achieving favorable prices from vendors. If company unable to pass on any rise in above cost to patients, business, results of operations and financial conditions may negatively affected.
Consultancy-Based Model
Park Media Ltd. has agreement with certain doctors on a consultancy basis, as at September 30, 2024 Company engaged with 480 consultants who are not full time employee of company and work under consultancy agreements. The duration of this consultancy agreement is valid for one year and after one year such agreement are subject to renewable from both parties. The reduction of consultant’s number who is specialist in their area may lead to reduce patient footfall and operations of company.
Regulatory risk
The healthcare industry in which company operates is subjected to government, state and environment laws where company intends to expand their business. The company may incur substantial costs in order to comply with current rules and regulations, and sometimes company not able to maintain full compliance with such laws and guidelines which may adversely affect company profit, operations and financial condition.
Grey Market Premium of Park Medi World Ltd IPO
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Park Medi World Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
