Paras Healthcare’s initial public offering (IPO) closed with a subscription of 2.23 times on October 23, as institutional investors stepped up their participation on the final day of bidding. The ₹1,450-crore issue attracted bids for approximately 2.69 crore shares against 1.21 crore shares offered to investors, excluding the anchor allocation.
The response marked a turnaround from the opening days, when overall demand remained below the shares available. Qualified institutional buyers (QIBs) emerged as the strongest category, while retail investors also subscribed to their reserved portion. Demand from non-institutional investors, however, remained below full subscription.
The public issue gives investors an opportunity to participate in Paras Healthcare, a hospital operator with a presence in northern and eastern India. Its listing will also offer an indication of investor appetite for healthcare companies amid growing demand for specialised medical services.
According to final subscription figures, the IPO was subscribed 2.23 times overall. The QIB category recorded 3.09 times subscription, while the retail investor portion was subscribed twice. The non-institutional investor category received bids for 0.66 times its reserved shares.
Institutional demand accounted for the largest share of bids on the final day. QIBs include mutual funds, banks, insurance companies and other eligible institutional investors. Their participation is often closely watched during an IPO because it provides one indication of demand from large investors, although it does not guarantee strong listing gains.
Retail participation also improved as the issue progressed. The retail portion, which had not been fully subscribed on the opening day, finished at twice the shares reserved for individual investors. Non-institutional investors, including high-net-worth individuals and certain corporate applicants, showed comparatively weaker demand.
Paras Healthcare launched its IPO on October 21 with a price band of ₹660 to ₹693 per share. The issue comprised a fresh share sale of ₹500 crore and an offer for sale (OFS) worth ₹950 crore.
The distinction matters because proceeds from the fresh issue go to the company, while money raised through the offer for sale goes to existing shareholders selling their holdings. Paras Healthcare plans to use the fresh issue proceeds primarily for debt repayment and general corporate purposes.
Before the public issue opened, the company raised approximately ₹652.5 crore from 39 anchor investors. Anchor investors are institutional buyers who receive an allocation before the IPO opens for public subscription.
The minimum application size for retail investors was 21 shares. At the upper end of the price band, an application for one lot required an investment of ₹14,553, excluding any applicable charges.
The allotment of shares is tentatively scheduled for October 26. Refunds for unsuccessful applicants and the transfer of allotted shares to demat accounts are expected on October 27. Paras Healthcare shares are scheduled to list on the BSE and NSE on October 28, 2026.
Paras Healthcare operates eight hospitals with a reported capacity of 2,211 beds. Its network provides services across multiple medical specialities, positioning the company in a healthcare market where demand for organised hospital care continues to grow.
The company’s recent financial performance offers another point of interest for prospective shareholders. In the financial year 2025-26, Paras Healthcare reported a net profit of ₹43.83 crore, compared with a loss of ₹57.98 crore in the previous financial year. Revenue increased 24.1% to ₹1,605.95 crore.
The improvement in profitability and revenue growth may attract investors looking for businesses that are expanding their operations while strengthening their financial position. However, hospital operators also face significant costs related to medical equipment, staffing, infrastructure, technology and regulatory compliance.
Debt levels, the utilisation of hospital beds, expansion plans and the ability to maintain profit margins will remain important factors in assessing the company after listing. Healthcare demand may be resilient, but that does not remove business risks or guarantee future earnings growth.
The IPO’s final subscription figures also underline the difference between demand across investor categories. While institutional and retail portions were oversubscribed, the non-institutional category remained undersubscribed. The overall issue nevertheless received bids for more shares than were available.
Investors should also distinguish between IPO subscription levels and potential listing performance. A fully subscribed or oversubscribed issue does not necessarily translate into a premium on the stock market debut. Listing prices depend on broader market conditions, company valuation and buying interest once shares begin trading.
With allotment expected on October 26 and listing scheduled for October 28, attention will now shift to the share allocation process and the stock’s market debut. Paras Healthcare’s ability to sustain revenue growth, improve profitability and manage debt will be central to how investors assess its longer-term prospects.