Park Medi World Ltd IPO

The company certain contingent liabilities that has been disclosed in the company financial statements. As of September 30, 2025, its contingent liabilities (excluding corporate guarantees) constituted 11.66% of the company net worth, while corporate guarantees given by the Company and Subsidiaries constituted 71.58% of our net worth. If these liabilities materialize, they may adversely affect the company results of operations, cash flows and financial condition.

A significant portion of our revenue from operations is derived from our hospitals located in Haryana, which comprised 74.62%, 76.92%, 83.91% and 84.98% of our revenue from operations in the six months ended September 30, 2024 and Fiscals 2024, 2023 and 2022, respectively. Any adverse developments at these hospitals or in this state could have an adverse effect on our business, results of operations and financial condition.

The nature of our business involves certain high costs including our cost of materials purchased, employee benefit expenses and professional and consultancy fees, and a failure to pass on such costs to patients could adversely affect our business, results of operations and financial condition.

We may not be able to complete or achieve the expected benefits from current or future acquisitions or successfully integrate new hospitals with our network, which could adversely affect our business and prospects.

We may not be successful in developing our proposed hospitals and may not achieve operating capacities that we anticipate, any of which could adversely affect our business, results of operations, financial condition and prospects.

Our arrangements with certain of our doctors are on a consultancy basis. If such doctors discontinue their association with us or are unable to provide their services at our hospitals, our business and results of operations may be adversely affected.

Certain of our Subsidiaries have experienced losses during the six months ended September 30, 2024 and the last three Fiscals. We cannot guarantee that these Subsidiaries will generate profits or avoid losses in the future.

We generate a significant portion of our revenues from certain key specialties such as internal medicine, neurology, urology, gastroenterology, cardiology, general surgery and orthopedics, which together contributed 92.17%, 92.87%, 92.42% and 90.39% of our revenue from operations for the six months ended September 30, 2024 and Fiscals 2024, 2023 and 2022, respectively. Any adverse developments in the demand or income from such specialties may adversely affect our business, results of operations and financial condition.

We are dependent on revenue generated from our in-patient department. If we are unable to maintain or increase our hospital occupancy rates at sufficient levels and generate adequate returns on our capital expenditure, our operating efficiencies and profitability may be adversely affected.

A significant portion of our revenue is derived from payments made by government agencies and insurance providers under various healthcare schemes. Delays in receiving payments or the rejection of claims raised by us could adversely impact our business, results of operations, financial condition and cash flows.

Our Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and members of Senior Management are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on our business, financial condition, cash flows and results of operations.

We have been and may in the future be subject to various operational, reputational, medical and legal claims or other actions arising from the prevision of healthcare services and may be subject to liabilities arising from claims of medical negligence which could have a material adverse impact on our business, cashflows and results of operations.

We operate in a highly regulated industry and any non-compliance with applicable safety, health and allied governmental regulations may adversely affect our business, results of operations and financial condition.

Any failure to obtain or renew approvals, licenses, registrations and permits required to operate our business in a timely manner, or any failure to maintain certain accreditations, may adversely affect our business, results of operations and financial condition.

We are required to provide performance guarantees to government authorities in accordance with their standard contractual terms for empanelment of their customers. In the event such guarantees are invoked, our business and cash flows may be adversely affected.

Two of our hospitals are located on leased premises and one of our hospitals is operated on a revenue share basis pursuant to operations and management agreements. An adverse development in our relationships with the relevant counterparties could affect our ability to operate these hospitals.

Our funding requirements and proposed deployment of Net Proceeds of the Offer are based on management estimates and have not been independently appraised by a bank or a financial institution and if there are any delays or cost overruns, our business, financial condition and results of operations may be adversely affected.

We have not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Offer and the costs to be incurred in relation to such Objects are based on the quotations received from the vendors.

Our business depends on the strength of our `Park` brand and reputation and any negative publicity or allegations including in the media against us, may adversely affect the level of trust in our services and have an adverse effect on our business, financial condition, results of operations and prospects.

We have engaged third party service providers to provide certain services in our hospitals. If these arrangements are terminated, our business, cash flows and operations may be adversely affected.

We rely on our information technology systems for the operation of our business and to protect our patients` personal information, and any disruption to our systems, or failure to protect such confidential information, could adversely affect our business and reputation and result in litigation.

We have availed certain borrowings from banks and financial institutions and are subject to certain covenants under their respective financing agreements. In the event that we are unable to comply with such covenants, our business, results of operations, cash flows and financial conditions may be adversely affected.

Any downgrade in our credit ratings could increase borrowing costs, which could in turn adversely affect our borrowing cost, our business, results of operations, financial condition and cash flows.

Our Company has availed an unsecured loan which may be recalled at any time.

We have been delayed in paying certain statutory dues in the past. Any failure or delay in payment of such statutory dues in the future may expose us to statutory and regulatory action, as well as significant penalties, and may adversely affect our business, results of operations, cash flows and financial condition.

An inability to continually enhance our offerings with new technology and medical equipment may lead to a decline in demand for our services and adversely affect our business and prospects.

We rely on third party vendors for certain of our supplies and equipment and the provision of certain services at our hospitals. Failure to procure such supplies and equipment or obtain such services from third parties on a timely basis, or failure of such third parties to meet their obligations to us, could adversely affect our business, results of operations and cash flows.

Regulatory reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing including any regulation to provide uniform pricing and discounted pricing for all patients could adversely affect our business, results of operations and financial condition.

Our advertisement and business promotion expenses represented 1.25%, 0.64%, 0.83% and 0.75% of our total expenses in the six months ended September 30, 2024 and Fiscals 2024, 2023 and 2022, respectively. If we fail to maintain and improve our brand and reputation, our business, results of operations and prospects may be adversely affected.

We have certain contingent liabilities that have been disclosed in our financial statements, which if materialize, may adversely affect our results of operations, cash flows and financial condition.

Any failure to protect our intellectual property rights could adversely affect our competitive position, business, financial condition and results of operation.

If we are unable to recruit and retain senior management, qualified and skilled personnel, our business and our ability to operate or grow our business may be adversely affected.

We face competition from other hospitals, pharmacies, diagnostic chains and healthcare services providers and our inability to compete effectively may adversely affect our business, results of operations and financial condition.

We may face challenges in launching new specialties or clinical programs at our hospitals, which could adversely affect our business and prospects.

The number of operational beds in our hospitals is lower than our total bed capacity. We cannot assure you that we will be able to increase the number of operational beds to effectively utilize our total bed capacity.

Our Statutory Auditors have included certain matters of emphasis in the notes to the Restated Consolidated Financial Information.

While we do not have any obligations to subsidize our services, any imposition by state governments to provide healthcare at subsidized prices may adversely affect our business and results of operations.

Our hospitals are susceptible to risks arising on account of fire, natural disasters such as floods or other incidents and man made incidents such as law and order situations.

Failure or malfunction of our medical or other equipment, could adversely affect our ability to conduct our operations.

Employee misconduct or failure to establish and maintain an effective internal controls and compliance system, our business and reputation could be adversely affected.

We may be subject to labour unrest, slowdowns and work stoppages, which could affect our business and reputation.

An inability to maintain sufficient insurance coverage to cover material risks may adversely affect our business and operations.

We have entered into related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with other shareholders.

Our Promoters will continue to retain control over our Company after completion of the Offer, which will allow them to influence the outcome of matters submitted for approval of our shareholders.

Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval. While our Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale.

Industry information included in this Draft Red Herring Prospectus has been derived from an industry report commissioned by us, and paid for by us for such a purpose.

The emergence and effects related to a pandemic, epidemic or outbreak of an infectious disease could adversely affect our operations.

Our quarterly results may fluctuate for a variety of reasons and may not fully reflect the underlying performance of our business.

Our ability to pay dividends in the future will depend on our earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements.

Certain of our Promoters, Directors, and Key Managerial Personnel may be interested in our Company and our Subsidiaries other than in terms of remuneration, perquisites or benefits and reimbursement of expenses.

Any downgrade in the company credit ratings could increase borrowing costs, which could in turn adversely affect its borrowing cost, the company business, results of operations, financial condition and cash flows.

The company witnessed a decline in its revenue from operations and restated profit after tax, as well as an increase in its cost of materials consumed / services rendered, in Fiscal 2024 as compared to Fiscal 2023. A similar decline in revenue from operations and restated profit after tax or increase in costs may adversely affect its business, financial condition, results of operations and cash flows.

The company highly dependent on doctors, nurses, medical professionals and support staff. As of September 30, 2025, the attrition rate of its doctors was 33.72%. If the company unable to retain or attract such professionals, the company business, results of operations and financial condition may be adversely affected.

A significant portion of its revenue from operations is derived from the company hospitals located in Haryana, which comprised 69.06%, 74.62%, 73.43%, 76.92%, and 83.91% of the company revenue from operations in the six months ended September 30, 2025 and September 30, 2024, and Fiscals 2025, 2024 and 2023, respectively. Any adverse developments at these hospitals or in this state could has an adverse effect on the company business, results of operations and financial condition.

The nature of the company business involves high costs including its cost of materials purchased, employee benefit expenses and professional and consultancy fees, and a failure to pass on such costs to patients could adversely affect the company business, results of operations and financial condition.

Its may not be able to complete or achieve the expected benefits from current or future acquisitions or successfully integrate new hospitals with our network, which could adversely affect the company business and prospects.

Its may not be successful in developing the company proposed hospitals and may not achieve operating capacities that the company anticipate, any of which could adversely affect the company business, results of operations, financial condition and prospects.

Its arrangements with certain of the company doctors are on a consultancy basis. If such doctors discontinue their association with it or are unable to provide their services at the company hospitals, its business and results of operations may be adversely affected.

The company has entered into related party transactions in the past and may continue to does so in the future, which may potentially involve conflicts of interest with other shareholders.

Its Subsidiary, Blue Heavens, has recently received the NCLT Order approving the Resolution Plan for the company acquisition of Durha Vitrak (operating as Febris Multi Specialty Hospital, Narela, New Delhi). its presently in the process of completing this acquisition. However, the comapny cannot yet determine whether the company will achieve the expected benefits from this acquisition, which may adversely affect the company business, results of operations, cash flows and financial condition.

Certain of its Subsidiaries has experienced losses during the six months ended September 30, 2025 and September 30, 2024 and the last three Fiscals. the company cannot guarantee that these Subsidiaries will generate profits or avoid losses in the future.

The company generate a significant portion of its revenues from certain key specialties such as internal medicine, neurology, urology, gastroenterology, cardiology, general surgery and orthopedics, which together contributed 86.13%, 92.18%, 88.34%, 92.87% and 92.42% of the company revenue from operations in the six months ended September 30, 2025 and September 30, 2024, and Fiscals 2025, 2024 and 2023, respectively. Any adverse developments in the demand or income from such specialties may adversely affect its business, results of operations and financial condition.

Its dependent on revenue generated from the company in-patient department. its bed occupancy rate has decreased from 75.13% in Fiscal 2023 to 59.81% in Fiscal 2024, and subsequently increased to 61.63% in Fiscal 2025. If its unable to maintain or increase the company hospital occupancy rates at sufficient levels and generate adequate returns on the company capital expenditure, the company operating efficiencies and profitability may be adversely affected.

A significant portion of the company revenue is derived from payments made by government agencies and insurance providers under various healthcare schemes. Delays in receiving payments or the rejection of claims raised by it could adversely impact the company business, results of operations, financial condition and cash flows.

Intensive Softshare Private Limited ("Intensive Softshare"), a promoter group of Intensive Fiscal Services Private Limited, one of the BRLMs to the Offer, holds equity shares in the Company.

The Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and members of Senior Management are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may has an adverse effect on the company business, financial condition, cash flows and results of operations.

Any failure to obtain or renew approvals, licenses, registrations and permits required to operate the company business in a timely manner, or any failure to maintain certain accreditation`s, may adversely affect its business, results of operations and financial condition.

Its may experience delays, disruptions or cost overruns in the construction of new hospital building in Rohtak, ("New Hospital") by its Subsidiary, Park Medicity NCR in case of failure to obtain or renew the approvals, licenses and permits required for development of New Hospitals.

Three of its hospitals are located on leased premises and two of the company hospitals are operated on a revenue share basis pursuant to operations and management agreements. An adverse development in the company relationships with the relevant counterparties could affect its ability to operate these hospitals.

One of the company hospital and our Registered Office premises are located on leased premises with a short- term lease period. An adverse development in the company relationships with the relevant counter parties could affect its ability to operate these hospitals.

The company has been and may in the future be subject to various operational, reputational, medical and legal claims or other actions arising from the provision of healthcare services and may be subject to liabilities arising from claims of medical negligence which could has a material adverse impact on the company business, cash flows and results of operations.

Its operate in a highly regulated industry and any non-compliance with applicable safety, health and allied governmental regulations may adversely affect the company business, results of operations and financial condition.

The company required to provide performance guarantees to government authorities in accordance with their standard contractual terms for empanelment of their customers. In the event such guarantees are invoked, its business and cash flows may be adversely affected.

The company witnessed a decline in certain key financial metrics in Fiscal 2024, namely EBITDA, EBITDA Margin, PAT Margin, return on capital employed and earnings per share. There is no assurance that these financial metrics will not continue to decline in the future.

Its funding requirements and proposed deployment of Net Proceeds of the Offer are based on management estimates and has not been independently appraised by a bank or a financial institution and if there are any delays or cost overruns, the company business, financial condition and results of operations may be adversely affected.

the company has not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Offer and the costs to be incurred in relation to such Objects are based on the quotations received from the vendors.

Its business depends on the strength of the company `Park` brand and reputation and any negative publicity or allegations including in the media against it, may adversely affect the level of trust in the company services and has an adverse effect on its business, financial condition, results of operations and prospects.

The company has engaged third party service providers to provide services in its hospitals. If these arrangements are terminated, the company business, cash flows and operations may be adversely affected.

Its rely on the company information technology systems for the operation of the company business and to protect its patients` personal information, and any disruption to the company systems, or failure to protect such confidential information, could adversely affect its business and reputation and result in litigation.

The company has availed certain borrowings from banks and financial institutions and are subject to certain covenants under their respective financing agreements. In the event that its unable to comply with such covenants, the company business, results of operations, cash flows and financial conditions may be adversely affected.

The Company has availed an unsecured loan which may be recalled at any time.

The company has been delayed in paying statutory dues in the past. Any failure or delay in payment of such statutory dues in the future may expose it to statutory and regulatory action, as well as significant penalties, and may adversely affect the company business, results of operations, cash flows and financial condition.

An inability to continually enhance its offerings with new technology and medical equipment may lead to a decline in demand for the company services and adversely affect its business and prospects.

Its rely on third party vendors for the company supplies and equipment and the provision of services at the company hospitals. Failure to procure such supplies and equipment or obtain such services from third parties on a timely basis, or failure of such third parties to meet their obligations to it, could adversely affect its business, results of operations and cash flows.

Regulatory reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing including any regulation to provide uniform pricing and discounted pricing for all patients could adversely affect its business, results of operations and financial condition.

The company advertisement and business promotion expenses represented 0.88%, 1.25%, 1.48%, 0.64% and 0.83% of its total expenses in the six months ended September 30, 2025 and September 30, 2024, and Fiscals 2025, 2024 and 2023, respectively. If its fail to maintain and improve the company brand and reputation, its business, results of operations and prospects may be adversely affected.

Any failure to protect the company intellectual property rights could adversely affect its competitive position, business, financial condition and results of operation.

If its unable to recruit and retain senior management, qualified and skilled personnel, the company business and its ability to operate or grow the company business may be adversely affected.

The company face competition from other hospitals, pharmacies, diagnostic chains and healthcare services providers and its inability to compete effectively may adversely affect the company business, results of operations and financial condition.

Its may face challenges in launching new specialties or clinical programs at the company hospitals, which could adversely affect its business and prospects.

The number of operational beds in its hospitals is lower than our total bed capacity. the company cannot assure you that its will be able to increase the number of operational beds to effectively utilize its total bed capacity.

The company Statutory Auditors have included certain matters of emphasis in the notes to the Restated Consolidated Financial Information.

While Its does not has any obligations to subsidize the company services, any imposition by state governments to provide healthcare at subsidized prices may adversely affect its business and results of operations.

The company hospitals are susceptible to risks arising on account of fire, natural disasters such as floods or other incidents and man made incidents such as law and order situations.

Failure or malfunction of the company medical or other equipment, could adversely affect its ability to conduct the company operations.

Employee misconduct or failure to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.

Its may be subject to labour unrest, slowdowns and work stoppages, which could affect the company business and reputation.

An inability to maintain sufficient insurance coverage to cover material risks may adversely affect its business and operations.

Its Promoters will continue to retain control over the Company after completion of the Offer , which will allow them to influence the outcome of matters submitted for approval of the company shareholders.

The company Promoters Dr. Ajit Gupta and Dr. Ankit Gupta has received increased salaries in Fiscal 2025.

Any variation in the utilization of the Net Proceeds would be subject to compliance requirements, including prior shareholders` approval. While the Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale.

Industry information included in this Red Herring Prospectus has been derived from an industry report commissioned by it, and paid for by it for such a purpose.

The emergence and effects related to a pandemic, epidemic or outbreak of an infectious disease could adversely affect its operations.

The company quarterly results may fluctuate for a variety of reasons and may not fully reflect the underlying performance of its business.

Our ability to pay dividends in the future will depend on our earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements.

Its Promoters, Directors, and Key Managerial Personnel may be interested in the Company and its Subsidiaries other than in terms of remuneration, perquisites or benefits and reimbursement of expenses.