Park Medi World shares surge over 6% after listing at discount. Should you buy now?

The stock rebounded strongly on Wednesday, rising as much as 6.5% to touch an intraday high of Rs 165.75 on the BSE, from its listing price of Rs 155.50 on the BSE.

The stock made a subdued listing on the exchanges, opening at Rs 155.60 on the BSE and Rs 158.80 on the NSE, both below its issue price of Rs 162.

The listing discount of up to 4% signalled a cautious start for the hospital and healthcare-focused company despite broader market support.


The IPO had priced shares at the upper end of the price band, valuing the company at nearly Rs 7,000 crore.

However, the weak debut did not deter a bounce-back, with the stock surpassing its issue price. The recovery in the counter suggests renewed interest among investors, possibly driven by the company’s long-term prospects.

Now what should investors do?

Shivani Nyati, Head of Wealth at Swastika Investmart, commented on the post-listing performance, saying, “Park Medi World had a muted debut, indicating cautious investor sentiment. However, the company’s presence in Tier-2 and Tier-3 healthcare markets, focus on affordable medical services, and planned deleveraging make it a promising player in the healthcare space.”

Read More: Park Medi World shares list at 4% discount to IPO price on exchanges

The IPO proceeds will be used to repay debt, which is expected to make the company net cash positive and yield interest cost savings of Rs 15 crore annually. Additional funds will be directed towards medical equipment capex and general corporate purposes.

While acknowledging the weak start, Nyati believes long-term performance will depend on the company’s ability to improve operational efficiency, boost return ratios, and expand hospital utilisation.

She advised investors and traders to hold the stock from a medium-to-long-term perspective while maintaining a stop-loss below Rs 145.

The IPO saw an overall subscription of 8.52 times, with non-institutional investors leading the charge. The NII portion was subscribed nearly 16 times, while qualified institutional buyers bid for over 12 times the shares on offer. Retail participation was comparatively moderate at 3.32 times, reflecting a selective approach by smaller investors amid a crowded IPO calendar.

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(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times.)