Barely weeks after ringing the opening bell, Park Medi World announced back-to-back acquisitions of three hospitals as part of its strategy to emerge as North India’s largest and most integrated hospital chain. In an exclusive interaction with Fortune India, Dr Sanjay Sharma, Chief Executive Officer of Park Medi World, and Sudesh Sharma, Chief Strategy Officer and OSD (Finance), outlined the company’s expansion roadmap.

The healthcare provider, which listed on December 17, 2025, has moved swiftly to translate its IPO narrative into execution. Within weeks of listing, Gurugram-based Park Medi World completed the acquisitions of KP Institute of Medical Sciences in Agra, Krishna Super-Speciality Hospital in Bathinda, and Febris Multispeciality Hospital in North Delhi (Narela), reinforcing its presence in key North Indian micro-markets that the management believes remain underserved.

“For us, the IPO journey was not just about capital raising,” says Sudesh Sharma. “What stood out was the opportunity to engage deeply with investors and clearly articulate our growth roadmap. I’m pleased that within weeks of listing, we have taken concrete and confident steps fully aligned with what we communicated during the IPO.”

Park Medi World raised ₹920 crore through its IPO, comprising a fresh issue of ₹770 crore and an offer for sale (OFS) of ₹150 crore by the promoter. The proceeds from the fresh issue are proposed to be used to strengthen the balance sheet through debt repayment, fund expansion by building new hospitals and upgrading existing facilities, invest in advanced medical equipment such as robotic surgery systems, and support future acquisitions.

Healthcare provider eyes pan-India expansion

Park Medi World currently operates 14 hospitals with an operational capacity of around 3,250 beds, largely concentrated across North India. According to Dr Sanjay Sharma, the company’s expansion strategy is deliberately cluster-driven, aimed at unlocking operational and clinical synergies.

“North India remains significantly underserved in healthcare,” he says. “Our focus is to deepen presence through cluster-based expansion—hospitals located close to one another, enabling clinical, operational, and logistical efficiencies.”

With the Agra acquisition, Park has entered its fifth state. The company now plans to replicate this cluster-led approach across Uttar Pradesh, followed by calibrated expansion into southern, eastern, and western India. “While our long-term vision is pan-India, consolidation comes first,” Sharma notes. “EBITDA and PAT protection are non-negotiable as we grow.”

Management estimates that the three recent acquisitions together serve a captive population of 35–38 lakh, with an effective area of influence nearly double that number, aligned with Park’s focus on delivering affordable, high-quality healthcare at scale.

Targets 5,260 beds by FY28

Park Medi World is currently the second-largest healthcare provider in North India, with 3,250 operational beds. In the current financial year, the company aims to add two facilities—one in Agra with 360 beds, and a greenfield project in Panchkula with over 300 beds, expected to commence operations by mid-March.

“We plan to make Febris, our hospital in the North Delhi–Narela area, operational in FY27. In the next two months, we will be adding approximately 660 beds to our existing capacity of 3,250 beds. In the following financial year, we plan to add a further 500 beds, primarily through developments in Kanpur and Delhi. Beyond this, we have three additional hospitals in the pipeline,” says Dr Sanjay Sharma.

He adds that the company plans to add another 850 beds through three new facilities—400 beds in Gorakhpur, 200 oncology-dedicated beds in Ambala, and 250 beds in Rohtak, the latter being a greenfield project. “With these additions, our total bed capacity is expected to increase to approximately 5,260 beds by FY28.”

Acquisitions to be funded through internal accruals

A defining feature of Park’s post-IPO expansion has been its sharp focus on capital efficiency. The Bathinda and Narela acquisitions were funded entirely through internal accruals, while the Agra hospital, acquired at an enterprise value of ₹245 crore, will be financed through a balanced mix of internal accruals, equity, and modest debt.

“The Narela asset, acquired under the IBC framework, serves a captive population of nearly 10–12 lakh and comes at an all-in capex of about ₹34–35 lakh per bed,” says Sudesh Sharma. “Bathinda is even more capital-efficient, with total capex of around ₹25–26 lakh per bed. These metrics are fully in line with—or better than—our historical benchmarks.”

Agra, though more capital-intensive at roughly ₹68 lakh per operational bed, is viewed as a strategic investment. “Agra is a pivot,” Sharma explains. “It allows us to scale quickly in western Uttar Pradesh and anchor future expansion into Kanpur and Gorakhpur, effectively spanning the state from west to east.”

Despite the rapid pace of acquisitions, management maintains that Park’s balance sheet remains robust. As part of its IPO, the company raised ₹252 crore for general corporate purposes and has since retired a significant portion of its debt.

“We are very comfortably capitalised,” says Sudesh Sharma. “Excluding Agra, the remaining growth pipeline requires around ₹328 crore of capex, which can be funded entirely through internal accruals.”

In addition, Park holds approximately ₹305 crore in unencumbered fixed deposits and about ₹50 crore in current accounts. Factoring in strong free cash flows, available debt headroom, and IPO proceeds, management estimates overall capital access of ₹3,500–4,000 crore, even before accounting for future equity dilution to meet minimum public shareholding norms.

Growth beyond beds

Expansion, however, is not just about adding beds. Sudesh Sharma outlines four key growth levers for the next 12–24 months: ramping up occupancy in relatively younger hospitals; expanding high-end quaternary care services in mature units; brownfield expansions; and selective greenfield developments.

“In hospitals already operating at 75–80% occupancy, we are shifting laterally into complex procedures—robotic surgeries, transplants, and advanced cardiac and neuro-interventions,” he says. “These initiatives enhance profitability without proportionate capital intensity.”

Stock yet to cheer investors

Despite the aggressive expansion plan, the stock has so far failed to excite investors. Since listing, Park Medi World shares have declined about 6% from the IPO price of ₹162, trading around ₹152 on January 21, 2026, with a market capitalisation of ₹6,578 crore. The stock touched a high of ₹165.75 on listing day before slipping to a low of ₹138.15 in the subsequent session.

Management, however, remains unfazed by near-term stock movements. “Execution is our answer,” says Sudesh Sharma. “As capacity ramps up and new hospitals mature, we believe the fundamentals will speak for themselves.”