Manipal Health IPO Subscribed 15% on Day 1

Manipal Health Enterprises’ IPO saw a 0.15 times overall subscription on its opening day, July 29, aiming to raise Rs 9,275.22 crores. The book-built issue combines a fresh issue with an Offer For Sale (OFS).

Subscription Snapshot

Individual categories recorded varying subscription rates by the close of the first day. Retail investors showed the strongest interest among the public categories.

• Overall subscription: 0.15 times
• Retail category: 0.27 times
• Qualified Institutional Buyers (QIBs): 0.15 times
• Non-Institutional Investors (NIIs): 0.08 times

Pricing and Market Premium

The Grey Market Premium (GMP) offered a modest indication of potential listing performance. This unofficial metric suggests a slight premium over the issue price.

• Grey Market Premium (GMP) on July 29: Rs 9
• Issue price: Rs 590.00
• Estimated listing price: Rs 599
• Potential listing gain: 1.53%

The IPO’s price band is set between Rs 560 and Rs 590 per share. Retail investors are required to bid for a minimum of 25 shares, costing Rs 14,750 at the upper price band.

Allocation and Management

Manipal Health Enterprises, one of India’s largest hospital chains with 49 hospitals, secured significant anchor investments. They raised Rs 4,167 crore from global and domestic anchor investors prior to the bidding process.

• Allocation for QIBs: 75%
• Allocation for NIIs: 15%
• Allocation for retail investors: 10%
• Shares reserved for employees: up to Rs 15 crore (with a discount of Rs 56 per share)

The issue’s lead managers include Axis Capital, Kotak Mahindra Capital Company, Goldman Sachs (India) Securities, Jefferies India, J.P. Morgan India, UBS Securities India, and DBS Bank India. KFin Technologies serves as the registrar.

Financial Performance Overview

The company’s financial records show consistent growth in total income over the past three fiscal years, alongside fluctuations in profit after tax and EBITDA. Total borrowing, however, saw a significant jump in the most recent fiscal year.

• Total income FY26: Rs 10,520.52 crore
• Total income FY25: Rs 8,362.79 crore
• Total income FY24: Rs 6,265.17 crore
• Profit After Tax (PAT) FY26: Rs 916.52 crore
• Profit After Tax (PAT) FY25: Rs 1,081.67 crore
• Profit After Tax (PAT) FY24: Rs 533.20 crore
• Operating profits (EBITDA) FY26: Rs 2,795.94 crore
• Operating profits (EBITDA) FY25: Rs 2,247.07 crore
• Operating profits (EBITDA) FY24: Rs 1,776.60 crore

Rising Debt and Key Risks

Manipal Health Enterprises’ total borrowing increased sharply in FY26, a move attributed to funding acquisitions for rapid expansion. This surge in debt also impacted the company’s profitability.

• Total borrowing FY26: Rs 10,553.43 crore
• Total borrowing FY25: Rs 4,766.83 crore
• Total borrowing FY24: Rs 3,943.98 crore
• Reason for increased borrowing: funding acquisitions for rapid expansion

A significant risk factor for the company is its substantial reliance on revenue from Karnataka, which accounts for approximately 50% of its total income. This makes Manipal Health highly susceptible to regulatory or pricing changes within that state.