Manipal Hospitals IPO: Rs 9,275 Cr Launch Amidst Falling GMP

Manipal Health Enterprises launched its Initial Public Offering on July 29, aiming to raise Rs 9,275 crore. The IPO’s price band is set between Rs 560 and Rs 590 per share.

Despite the issue size, the grey market premium (GMP) has dropped to Rs 10, indicating subdued expectations. Based on the upper price band, the estimated listing price is Rs 600, predicting a 1.69% gain per share.

IPO Structure and Minimum Investment

The book-built issue includes both a fresh issuance and an offer-for-sale. Retail investors are required to subscribe to a minimum of one lot.

• Fresh issue: 13.56 crore shares, valued at Rs 8,000 crore
• Offer-for-sale (OFS): 2.16 crore shares
• Minimum retail lot: 25 shares, totaling Rs 14,750 at the upper price band

Kotak Mahindra Capital Co. Ltd. acts as the book running lead manager, with Kfin Technologies Ltd. serving as the registrar for the issue.

Financial Performance and Objectives

Manipal Health Enterprises reported a 26% year-on-year increase in total income for FY25. The company’s profit after tax, however, saw a decrease.

• FY25 Total Income: Rs 10,520.52 crore (up from Rs 8,362.79 crore in previous year)
• FY25 EBITDA: Rs 2,795.94 crore (up from Rs 2,247.07 crore)
• FY25 Profit After Tax: Rs 916.52 crore (down from Rs 1,081.67 crore)

The funds raised from the IPO are designated for specific corporate objectives. These include debt repayment and strategic acquisitions.

• Repay outstanding borrowings of subsidiary: Manipal Hospitals Private Ltd.
• Acquire a minority stake in: Sahyadri Hospitals Private
• General corporate needs

Key Dates for Investors

The subscription window for the Manipal Hospitals IPO will remain open for three days. Key dates for allotment and listing have been set.

• Subscription window: July 29 to July 31
• Final allotment of shares: August 3
• Tentative listing on NSE and BSE: August 5