Prime Highlights
- Manipal Health Enterprises pursues an $8 billion valuation through its India IPO, ranking among the country’s largest hospital chain operators.
- The Temasek backed healthcare firm aims to strengthen its balance sheet and fund expansion through fresh capital and a step down subsidiary investment.
Key Facts
- Manipal Health runs 48 hospitals with 12,367 beds, priced in a band of 560 to 590 rupees per share.
- Temasek’s Imperius Healthcare Investments and TPG Capital lead the offer for sale worth 12.10 billion rupees.
Background
Manipal Health Enterprises is aiming for a valuation of as much as $8 billion through its initial public offering. The Temasek backed hospital chain has drawn strong investor interest as India’s healthcare sector continues to grow.
The Bengaluru based company set a price band of 560 to 590 rupees per share for its 92.75 billion rupee ($960.42 million) IPO. The issue ranks among India’s biggest primary market offerings this year, second only to SBI Funds Management’s $1.03 billion listing, which posted a strong debut on its market entry.
Manipal Health runs 48 hospitals with 12,367 beds across the country. This makes it one of India’s largest hospital chain operators, competing with Apollo Hospitals Enterprise, Max Healthcare, and Fortis Healthcare in a fast growing market.
Regulators have cleared the IPO, opening the path for a public listing. The company will issue new shares worth 80 billion rupees to build its capital base for future growth.
Existing investors are also selling shares as part of the offering. Temasek’s Imperius Healthcare Investments, TPG Capital and other stakeholders will offload shares worth 12.10 billion rupees.
Manipal Health will use the proceeds to repay borrowings and invest in a step down subsidiary, strengthening its finances as it expands further.
Anchor investors will bid ahead of the public subscription window. The window will then stay open for several days, giving investors a chance to join one of the year’s most watched healthcare listings.
