Prime Highlights
- Manipal Health raised ₹4,167 crore from anchor investors before launching its ₹9,275 crore IPO.
- Most of the fresh issue proceeds will go toward debt repayment and acquiring the remaining stake in Sahyadri Hospitals.
Key Facts
- Manipal Health is a pan-India multispecialty hospital operator with hospitals across 14 states and Union Territories.
- The IPO includes a fresh issue of ₹8,000 crore and an offer for sale of up to 2.16 crore shares.
Background
Manipal Health Enterprises Ltd. has raised ₹4,167 crore from anchor investors ahead of its ₹9,275 crore initial public offering (IPO), showing strong interest from both global and domestic institutional investors. The company allotted more than 7.06 crore equity shares to anchor investors at ₹590 per share, the upper end of the IPO price band.
The IPO is priced in a ₹560-590 per share price band, valuing the Bengaluru-based hospital chain at over ₹77,600 crore at the upper end. The public issue includes a fresh issue of up to ₹8,000 crore worth of shares and an offer for sale of up to 2.16 crore equity shares by existing shareholders.
The company plans to use ₹5,378 crore from the fresh issue to repay or prepay borrowings of its subsidiary, Manipal Hospitals Pvt. Ltd. It will also spend ₹574 crore to acquire the minority stake in Sahyadri Hospitals Pvt. Ltd. The remaining amount will support general corporate needs.
Several global investors joined the anchor round, including ADIA, Allianz Global Investors Fund, Morgan Stanley Asia, Natixis International Fund, Societe Generale and Goldman Sachs Bank Europe. Domestic mutual funds such as ICICI Prudential MF, Kotak MF, Aditya Birla Sun Life MF, UTI MF and HSBC MF also participated.
Manipal Health operates a network of multispecialty hospitals across India. By the end of September, it had 38 hospitals, or 48 on a pro forma basis, with more than 10,700 licensed beds across 14 states and Union Territories. In November, the company opened its 49th hospital in Bengaluru, increasing its licensed bed capacity to 12,631 by the end of December.
