Abu Dhabi Fund Joins Paras Healthcare IPO Investors Arabian Post

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Arabian Post Staff -Dubai

A unit of Abu Dhabi Investment Authority has secured shares in Paras Healthcare's Rs 14.5 billion initial public offering, placing the emirate's sovereign wealth capital among the hospital operator's institutional backers.

The Gurugram-based company opened its public subscription on Wednesday, October 21, with bidding scheduled to close on Friday. Its anchor placement, completed on October 19, raised Rs 6.525 billion from domestic and overseas institutions ahead of the public offer.

Exchange disclosures show that Paras Healthcare allocated 9,415,584 shares to anchor investors at Rs 693 each, the upper end of its offer price range of Rs 660 to Rs 693. The allocation included Abu Dhabi Investment Authority, alongside BlackRock, Eastspring Investments and Norway's Government Pension Fund Global.

An allocation identified as Abu Dhabi Investment Authority – Stable accounted for approximately Rs 700 million in the anchor book. The placement establishes the fund's participation before trading begins, although the eventual performance of the shares will depend on demand and market conditions after listing.

Paras Healthcare is seeking Rs 14.5 billion through the flotation, comprising Rs 5 billion in newly issued equity and Rs 9.5 billion in shares sold by existing investors. Only proceeds from the fresh issue will be received by the hospital company; money raised through the secondary sale will go to the selling shareholders.

Founder and promoter Dharminder Kumar Nagar is offering shares worth Rs 3 billion, while Commelina, an investment vehicle associated with private equity group Creador, is selling shares valued at Rs 6.5 billion. The offering was reduced from an earlier proposed size of Rs 18 billion.

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The distinction between the two components is significant for the company's finances. Paras Healthcare has identified debt repayment and general corporate purposes among the uses for the capital raised through new shares, while the offer for sale provides existing shareholders with an opportunity to realise part of their investments.

The anchor placement drew participation from domestic mutual funds, insurers and international asset managers. Nine domestic mutual fund houses received allocations across 24 schemes, with shares valued at approximately Rs 3.85 billion, reflecting the substantial role of local institutional investors in the fundraising.

Among the domestic participants were funds associated with SBI, HDFC, ICICI Prudential, Kotak Mahindra, WhiteOak Capital, Motilal Oswal and Edelweiss. Insurance participants included ICICI Prudential Life Insurance, Edelweiss Life Insurance and Canara HSBC Life Insurance, which collectively acquired shares worth approximately Rs 450 million.

The institutional allocation was priced at the ceiling of the announced band, but that does not establish the final public subscription level or guarantee a premium when the shares begin trading. Retail and other eligible investors can submit applications during the three-day bidding period.

Paras Healthcare operates eight hospitals under the Paras Health brand, with a combined capacity of 2,211 beds. Its facilities serve patients in Haryana, Bihar, Uttar Pradesh, Rajasthan, Jharkhand and Jammu and Kashmir, covering a mix of large urban centres and other regional markets.

The group provides tertiary and quaternary care, including specialised hospital services requiring advanced clinical facilities. Its planned expansion includes a 300-bed hospital in Gurugram and a 500-bed facility in Ludhiana, according to the company's offer documents.

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Those additions are expected to increase its total bed capacity to 3,011 by March 2028, subject to the commissioning of the proposed facilities. The expansion plans sit alongside the company's stated intention to reduce borrowings using part of the fresh issue proceeds.

The proposed listing will provide investors with a publicly traded hospital operator whose operations span several states and one Union Territory. The company's prospectus sets out its operating performance, financial position and risks for prospective shareholders assessing the offer.

The public issue is structured as a book-built offering, with the final offer price to be determined within the stated band. The anchor investors received their allocation before ordinary subscriptions opened, under a separate institutional process governed by existing applicable market regulations.

The issue is being managed by JM Financial, BofA Securities India and Nuvama Wealth Management. MUFG Intime India is acting as registrar, overseeing the processing of applications and share allotments under the offering timetable.

Shares are expected to list on the BSE and National Stock Exchange on October 28, following the scheduled completion of bidding on October 23 and the allotment process. Applications are being accepted within the announced price band during the subscription window.

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