Manipal Health IPO: Rs 9,275 Cr Issue Opens July 29

Manipal Health Enterprises, which operates the Manipal Hospitals network, is set to launch its Initial Public Offering (IPO) for subscription on July 29. The offering aims to raise up to Rs 9,275 crore, with shares priced between Rs 560 and Rs 590 each.

Key IPO Figures

• IPO Launch Date: July 29
• Target Raise: Rs 9,275 crore
• Price Band: Rs 560 – Rs 590 per share
• Fresh Issue Value: Rs 8,000 crore
• Offer For Sale (OFS) Value: Rs 1,275.2 crore
• OFS Equity Shares: 2.16 crore
• Market Capitalization (upper band): Rs 77,607.26 crore

The anchor book opens on July 28, with the public issue closing on July 31. Share allotment is expected by August 3, leading to a stock exchange listing on August 5.

OFS Details and Shareholder Structure

The Offer For Sale includes shares from promoters Imperius Healthcare Investments and Manipal Education and Medical Group India. Other selling investors include TPG SG Magazine, Seventy Second Investment Company, Ammar Sdn Bhd, Novo Holdings Invest Asia, and Phoenix Bear Investments.

Manipal Health Enterprises has reserved shares worth Rs 15 crore for its employees. These employees will receive a discount of Rs 56 per share from the final offer price. Allocation is set at 50% for qualified institutional investors, 15% for non-retail investors, and 35% for retail investors.

Manipal Hospitals’ Market Position

Manipal Hospitals is India’s largest pan-India multispecialty hospital network based on bed capacity. It ranks as the second-largest hospital chain by the number of hospitals operated. The network includes 49 hospitals and over 12,600 beds across more than 24 cities.

Fund Utilization Strategy

Proceeds from the fresh issue are primarily earmarked for debt repayment. A significant portion, Rs 5,378 crore, will go towards this. Additionally, Rs 574 crore is allocated for acquiring a minority stake in its subsidiary, Sahyadri Hospitals, with remaining funds for general corporate purposes.

Merchant bankers managing the issue include Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JP Morgan India, UBS Securities India, and DBS Bank India. KFin Technologies is serving as the registrar for the IPO, which will list on both the BSE and NSE.