Manipal Health Prepares ₹9,200 Crore IPO, Sets Price Band at ₹560-₹590
Manipal Health's IPO aims to raise ₹9,275 crore, opening on July 29 with plans for major expansion.
Manipal Health Enterprises, supported by Temasek, is set to launch its Initial Public Offering (IPO) on July 29, aiming to raise approximately ₹9,275 crore. The IPO involves a fresh issue of ₹8,000 crore and an offer for sale (OFS) of up to 21 crore shares, valued at ₹1,275 crore. The price band for the IPO has been established between ₹560 and ₹590 per share.
Strategic Financial Moves
Of the ₹8,000 crore from the fresh issue, Manipal intends to allocate ₹5,500 crore towards debt reduction, moving closer to becoming debt-free. Additionally, ₹574 crore will be used to acquire a minority stake in Sahyadri Hospitals, a step-down subsidiary.
The offering will also allow existing investors, including Temasek's Imperius Healthcare Investments and TPG Capital, to partially or fully exit their investments. The anchor investor bidding starts on July 28, with public subscriptions open from July 29 to July 31. Share allotment is expected by August 3, with the company listing on stock exchanges on August 5.
Expansion and Growth Plans
Dilip Jose, Managing Director and CEO of Manipal Health Enterprises, highlighted the company's ambitious expansion plans during a press briefing in Mumbai. The firm plans to add 2,426 beds to its current 13,037-bed capacity across 14 states by the fiscal year 2030. This includes a new 603-bed hospital in Juhu, Mumbai, and a 360-bed facility in Raipur, marking Manipal's entry into Central India.
Further expansions are planned in existing locations such as Nashik, Pune, Ahilya Nagar, and Bengaluru. Manipal also holds land banks in Rajarhat and Asansol, West Bengal, and is exploring opportunities to expand in Kerala, Hyderabad, and the Delhi-NCR region.
Position in the Market
The IPO is expected to be one of India's largest healthcare public offerings, positioning Manipal among the top 150 listed companies in terms of market capitalization. This move is seen as a significant step in Manipal's strategy to enhance its market presence and operational capabilities across the country.