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14 Jun, 2025
Metro Hospital and Heart Institute, a leading private hospital chain in North India, has announced plans to launch an initial public offering (IPO) worth ₹1,000 crore. The move comes as the company seeks to bolster its expansion strategy, upgrade its facilities, and strengthen its presence in the rapidly growing Indian healthcare sector.
Metro Hospital’s decision to go public is backed by impressive financial growth. The company’s profits surged by 85 percent to ₹235.16 crore in the last fiscal year, while its topline has grown at a compounded annual growth rate (CAGR) of 22 percent over recent years. This robust performance has provided the confidence and capital base necessary to embark on a significant expansion drive.
According to sources close to the development, the IPO will comprise a fresh issue of shares aimed at raising new capital, along with an offer-for-sale (OFS) component by existing shareholders. The fresh issue is expected to account for the majority of the ₹1,000 crore target, with proceeds earmarked for expanding hospital infrastructure, increasing bed capacity, and entering new markets.
The company currently operates over 2,500 beds across 12 hospitals in key cities such as Delhi, Noida, and Meerut. With the funds raised, Metro Hospital aims to increase its bed count to 4,000 over the next three years, focusing on underserved regions and tier-2 cities. Additionally, a portion of the proceeds will be used to reduce debt and meet working capital requirements, thereby strengthening the company’s balance sheet for future growth.
The Indian healthcare sector has experienced a surge in investor interest, especially following the pandemic, which highlighted the need for quality medical infrastructure. Metro Hospital’s IPO comes on the heels of successful listings by other hospital chains, such as Rainbow Children’s Hospital and Medanta, both of which saw strong demand from institutional and retail investors.
Industry experts note that the sector’s growth is being driven by rising incomes, increased health awareness, and government initiatives to expand access to healthcare. This has created a favorable environment for hospital chains to raise capital and expand their reach.
Dr. Purshotam Lal, Chairman and Managing Director of Metro Hospital, expressed optimism about the company’s future. “Our IPO marks a significant milestone in our journey. The funds raised will enable us to bring world-class healthcare to more people and strengthen our position as a leader in affordable, quality healthcare,” he said.
The company’s expansion strategy is not limited to increasing bed capacity. Metro Hospital also plans to invest in advanced medical technology, upgrade existing facilities, and enhance its service offerings to cater to a broader patient base. This holistic approach is expected to position the chain as a preferred choice for patients seeking high-quality, affordable healthcare.
While the exact timeline for the IPO has not been disclosed, market watchers anticipate that the company will file its draft red herring prospectus (DRHP) with SEBI in the coming months. The IPO is expected to attract significant attention from both domestic and international investors, given the company’s strong financials and clear growth trajectory.
ICICI Securities, Axis Capital, and JM Financial have been appointed as the lead book-running managers for the issue, underscoring the scale and seriousness of the offering.
Metro Hospital’s planned ₹1,000 crore IPO represents a pivotal moment for the company and the broader Indian healthcare sector. With a proven track record of growth, a clear expansion roadmap, and a favorable market environment, the hospital chain is well-positioned to capitalize on the opportunities ahead. Investors and industry observers will be closely watching the IPO’s progress as Metro Hospital aims to set new benchmarks in accessible and quality healthcare delivery.
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