Postal Ballot Notice · capex
Amending certain objects of Initial Public Offer
(“IPO”) proceeds
The Company had undertaken an Initial Public Offer (“IPO”)
in the Financial Year 2025-26 which consisted of a Fresh Issue
of equity shares by the Company aggregating up to INR 7,700
million and sale of equity shares by promoter selling shareholder
aggregating up to INR 1,500 million.
The net proceeds received by the Company from the fresh issue
component of the IPO after deduction of expenses in relation to
the fresh issue from the IPO Proceeds was INR 7,132.77 million.
The Company had outlined the following items as the objects
towards which the IPO Proceeds (excluding issue related
expenses) would be utilised in the section “Objects of the Offer”
in the prospectus dated December 12, 2025 (“Prospectus”) in
connection with the IPO:
1.
Repayment/ prepayment, in full or in part, of outstanding
borrowings availed by our Company and our Subsidiaries.
2.
Funding capital expenditure for development of new
hospital by our Subsidiary Park Medicity (NCR).
3.
Funding capital expenditure for purchase of medical
equipment by our Company and our Subsidiaries, Blue
Heavens and Ratangiri.
4.
Unidentified
inorganic
acquisitions
and
general
corporate purposes.
The Company has fully utilised the IPO Proceeds allocated
towards object nos. 1 and 4 in accordance with the terms set out
in the Prospectus. The Company has also partially utilised the
amounts allocated towards object nos. 2 and 3. As on the date
of this Notice, an amount of INR 409.81 million and INR 238.51
million aggregating INR 648.32 million remains unutilised under
object nos. 2 and 3, respectively.
In view of the imminent opportunity to acquire V3 Healthcare
Private Limited, which owns and operates ‘The Medicity Hospital,
Rudrapur’, the Board believes that it would be in the best interests
of the Company and its stakeholders to vary the terms of the
Objects of the Issue as disclosed in the Prospectus and deploy
the aforesaid unutilised amount towards a new object, (Object 5)
viz. funding the acquisition of V3 Healthcare Private Limited.
The proposed variation would enable the Company to pursue a
strategically important inorganic acquisition while maintaining a
prudent capital structure, with term borrowings remaining at a
minimal level (INR 282 million as at March 31, 2026). Further,
it would provide the Company with the financial flexibility to
fund the construction of its proposed Rohtak hospital and future
medical equipment upgrades through internal accruals and
operating cash flows, thereby optimising capital allocation and
enhancing long-term shareholder value.
The Medicity Hospital, Rudrapur, is a well-established multi-super
speciality healthcare institution with a total capacity of 330 beds.
As the largest hospital in the Kumaon region, the facility spanning
over ~7,000 square meters of land with approximately 1.64 lakh
square feet of covered area. Notably, the hospital is among the
select NABH-accredited institutions in the region, reflecting
commitment to the highest standards of clinical governance,
patient safety, and operational quality. The hospital is equipped
with advanced multi-disciplinary capabilities and modern medical
infrastructure, staffed by a distinguished clinical team comprising
specialists drawn from premier institutions of national repute. The
facility operates with a strong patient-centric ethos, underpinned
by a commitment to delivering superior clinical outcomes and
enhancing the quality of care across the communities it serves.
The Board of Directors of the Company at their meeting held
on August 03, 2026, approved the aforesaid proposal to vary
the objects for unutilised amounts of Objects 2 and 3, as also
detailed hereinbelow, subject to approval of the shareholders by
way of a special resolution.
The details required under the Rule 7 of the Companies (Prospectus and Allotment of Securities) Rules and Rule 32 of the Companies
(Incorporation) Rules, 2014 are as follows:
1.
The original purpose or object of the issue as per Prospectus and total money raised
The Company had outlined the following items as the objects towards which the IPO Proceeds (excluding issue related expenses)
would be utilised in the section “Objects of the Offer” in the Prospectus, in connection with the IPO:
(INR in million)
Sr.
No.
Objects
Amount raised
Estimated utilisation of the
Net Proceeds
Fiscal 2026
Fiscal 2027
1.
Repayment/ prepayment, in full or in part, of outstanding borrowings
availed by our Company and our Subsidiaries
3,800.00
3,800.00
-
2.
Funding capital expenditure for development of new hospital and
expansion of existing hospital by our Subsidiary, Park Medicity (NCR)
605.00
-
605.00
3.
Funding capital expenditure for purchase of medical equipment by
our Company and our Subsidiaries, Blue Heavens and Ratangiri
274.59
229.59
45.00
8
Postal Ballot Notice
4.
Unidentified inorganic acquisitions and general corporate purposes
2,453.18
500.00
1,953.18
Total (excluding issue related expenses)
7,132.77
4,529.59
2,503.18
Further details in respect of the Objects of the Offer were provided in the section titled “Details of the Objects” of the Prospectus.
2.
The money utilised for the original objects of the Company stated in the Prospectus, the extent of achievement of
proposed objects and the unutilised amount out of the money so raised through prospectus
(INR in million)
Sr.
No.
Objects
Amount
raised
Amount
utilised
Extent of achievement
of proposed objects in
terms of percentage
Amount
unutilized
1.
Repayment/ prepayment, in full or in part, of
outstanding borrowings availed by our Company
and our Subsidiaries
3,800.00
3,800.00
100%
Nil
2.
Funding capital expenditure for development of
new hospital and expansion of existing hospital by
our Subsidiary, Park Medicity (NCR)
605.00
195.19
32.26%
409.81
3.
Funding capital expenditure for purchase of
medical equipment by our Company and our
Subsidiaries, Blue Heavens and Ratangiri
274.59
36.08
13.14%
238.51
4.
Unidentified inorganic acquisitions and general
corporate purposes
2,453.18
2,453.18
100%
Nil
Total (excluding issue related expenses)
7,132.77
6,484.45
90.91%
648.32
Issue related expenses
567.23
567.23
100%
Nil
Total (including issue related expenses)
7,700.00
7,051.68
91.58%
648.32
3.
The particulars of the proposed variation in the objects for which the Prospectus was issued
(INR in million)
S.
no.
Original objects of the IPO as stated in the Prospectus
Total
amount
raised
Details of Variation
Revised timeline
for utilisation
1.
Repayment/ prepayment, in full or in part, of outstanding
borrowings availed by our Company and our Subsidiaries
3,800.00
No Change
Not Applicable
2.
Funding capital expenditure for development of new
hospital by our Subsidiary Park Medicity (NCR)
605.00
INR 409.81 mn
allocated to Object 5
Nil
3.
Funding capital expenditure for purchase of medical
equipment by our Company and our Subsidiaries, Blue
Heavens and Ratangiri
274.59
INR 238.51 mn
allocated to Object 5
Nil
4.
Unidentified inorganic acquisitions and general corporate
purposes
2,453.18
No change
Not Applicable
5.
Funding capital expenditure regarding acquisition of The
Medicity Hospital, Rudrapur
Nil
Unutilised amounts of
Object 2 and 3, totalling
to INR 648.32 mn
allocated to Object 5
FY 2026-27
Total (excluding issue related expenses)
7,132.77
Not applicable
FY 2026-27
Issue related expenses
567.23
Not applicable
Not applicable
Total (including issue related expenses)
7,700.00
Not applicable
Not applicable
Park Medi World Ltd
Postal Ballot Notice
9
4.
The Justification for seeking variation in the objects
of the IPO
The Company has utilised more than 91% of the IPO
Proceeds towards the objects stated in the Prospectus by
employing them towards repayment of borrowings (INR
3,800.00 million), acquiring a 360-bed hospital in Agra
(INR 2,453.18 million), while partially utilising the proceeds
earmarked for the development of the new hospital at
Rohtak (INR 195.19 million) and the purchase of medical
equipment (INR 36.08 million). The balance amount
allocated towards these objectives (INR 648.32 million) is
proposed to be utilised for funding the acquisition of V3
Healthcare Private Limited, which owns and operates ‘The
Medicity Hospital, Rudrapur’.
The proposed acquisition represents an imminent strategic
opportunity for the Company to expand its healthcare
network through the acquisition of an operational hospital
with an established clinical infrastructure, patient base
and experienced medical professionals. The acquisition
is expected to strengthen the Company's presence in
the region, accelerate revenue and profit generation and
support its long-term growth strategy.
The Board is of the view that deploying the unutilised
IPO proceeds towards the proposed acquisition would
constitute a more efficient allocation of capital at this
stage and deliver superior value to shareholders over
the medium to long term. The proposed variation would
also enable the Company to maintain a prudent capital
structure by keeping its term borrowings at a minimal
level (INR 282.00 million as on March 31, 2026), while
preserving the flexibility to fund the construction of the
proposed Rohtak hospital and future medical equipment
upgrades through internal accruals and operating cash
flows as these projects progress.
The proposed variation in the utilisation of IPO proceeds
is therefore considered to be in the best interests of
the Company and its stakeholders and is expected to
create sustainable long-term value while supporting the
Company's strategic expansion plans.
5.
The proposed time limit within which the proposed
varied objects would be achieved
The Company proposes to use the unutilised IPO Proceeds
in accordance with the varied objects (as set out above)
within Fiscal Year 2026-27.
6.
The estimated financial impact of the proposed
alteration on the earnings and cash flow of the
company
The proposed reallocation is expected to have a positive
impact on the Company’s financial position, earnings
profile and cash flows for the following reasons:
a.
the Company anticipates achieving operational and
administrative synergies through the integration
of
the
acquired
business
with
its
existing
operations, resulting in improved efficiencies and
optimisation of costs;
b.
the deployment of funds towards a revenue-
generating asset is expected to accelerate the
realisation of economic benefits compared to the
original object, the expenditure for which can be
funded through internal accruals at a later stage.
The management of the Company is of the view that the
proposed variation will ensure optimum utilisation of IPO
Proceeds and maximize shareholders’ wealth.
7.
The clause-wise details as specified in sub-rule
(3) of rule 3 as was required with respect to the
originally proposed objects of the issue
Not applicable as the said rule has been omitted with effect
from May 7, 2018.
8.
The risk factors pertaining to the new objects
We have a track record of acquiring hospitals and growing
our network, having acquired ten hospitals in North India
and adding 2,510 beds to our network through such
initiatives as of June 30, 2026. As part of our growth
strategy, we will continue to evaluate new acquisition
opportunities and expand our network. However, the
success of such acquisitions or any other acquisition that
we may undertake in the future will depend, in part, on
our ability to realize the anticipated growth opportunities
and
synergies
from
combining
these
businesses.
Integrating new business or another entity into ours could
be a task that will require substantial time, expense and
effort from our management. If there are any difficulties
associated with integrating these businesses, our results of
operations, cash flows and reputation could be adversely
affected. Even if we are able to successfully combine the
business operations, it may not be possible to realize the
full benefits of the integration opportunities, the synergies
10
Postal Ballot Notice
and other benefits that we currently expect will result from
such acquisitions, or realize these benefits within the time
frame that we currently expect. Further, any business that
we acquire may have unknown or contingent liabilities,
ongoing legal actions and we may become liable for the
past activities of such businesses. We may be subject
to undisclosed risks and liabilities from any historic
non-compliances which may exist in relation to such
businesses. Although we would typically seek to obtain
indemnities and other forms of buyer protections from the
sellers of our acquired businesses, assets and companies,
these protections may not be adequate or we may not be
able to successfully make claims to cover all losses that
we may suffer in connection with these liabilities. Also, we
may be unable to find suitable companies to acquire, or
find suitable assets to purchase in the future. Any failure to
identify suitable opportunities or to realize the anticipated
benefits of any acquisition, in a timely manner, or at all,
could have an adverse effect on our business, results of
operations and financial condition.
All statements contained in this Explanatory Statement that
are not statements of historical fact, constitute “forward-
looking statements”. All such statements are based on our
current plans, estimates, presumptions and expectations
and are subject to risks, uncertainties and assumptions.
Regulatory overhaul, timely receipt of receivables due,
unforeseen circumstances in spite of best efforts are the
major risk factors that might affect the Company despite
best efforts taken by it.
9.
The place from where any interested person may
obtain a copy of the notice of resolution to be passed
The copy of the resolution can be accessed from the
website of the Company at https://www.parkhospital.in and
the website of BSE and National Stock Exchange of India
(“NSE”), the Stock Exchanges where the securities of the
Company are listed.
10. Any other relevant information which is necessary
for the members to take an informed decision on the
proposed resolution
The Company has utilised more than 75% of the IPO
Proceeds towards the objects of the IPO, therefore,
the conditions for applicability of the exit offer under
Regulation 59 read with Schedule XX of the Securities
and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2018 (“SEBI ICDR
Regulations”) do not apply to this proposed variation.
In terms of Section 27 of the Act and rules made thereunder
and applicable provisions of SEBI ICDR Regulations,
the aforesaid proposal of variation of objects is being
placed before the shareholders for approval by way of a
special resolution.
None of the Directors, Key Managerial Personnel of the
Company, or their relatives are concerned or interested,
financially or otherwise, in the proposed resolution.
The Board recommends the resolution for the approval of
the Members as a Special Resolution.
By order of the Board
For Park Medi World Limited
Sd/-
(Abhishek Kapoor)
August 03, 2026
Company Secretary & Compliance Officer
Gurgaon, Haryana
No answer was attributed to this question in the transcript.
