Manipal Health Enterprises sets price band for Rs 9,275 crore IPO, opens July 29

Bengaluru-based Manipal Health Enterprises, which runs the Manipal Hospitals network, will open its maiden public issue for subscription on July 29. The IPO has been fixed in the price band of Rs 560-590 per share.

Backed by Temasek and Ranjan Pai, the healthcare company plans to raise Rs 9,275 crore through the IPO. The issue comprises a fresh issue of Rs 8,000 crore and an offer-for-sale (OFS) of 2.16 crore equity shares worth Rs 1,275.2 crore.

Imperius Healthcare Investments and Manipal Education and Medical Group India, along with investors TPG SG Magazine, Seventy Second Investment Company, Ammar Sdn Bhd, Novo Holdings Invest Asia and Phoenix Bear Investments, will sell shares through the OFS.


The anchor book will open for one day on July 28, ahead of the public issue, which will remain open until July 31. The IPO share allotment is expected to be finalised by August 3, with Manipal Health Enterprises scheduled to list on the stock exchanges on August 5.

The company has reserved shares worth Rs 15 crore for its employees. Eligible employees will be offered the shares at a discount of Rs 56 per share to the final offer price. The minimum bid size for other investors is 25 equity shares, with bids thereafter allowed in multiples of 25 shares.

Manipal Hospitals describes itself as the largest pan-India multispecialty hospital network by bed capacity and the second largest hospital chain by number of hospitals. The network operates 49 hospitals with more than 12,600 beds across over 24 cities.

Of the net proceeds from the fresh issue, Rs 5,378 crore will be used to repay loans. Another Rs 574 crore has been earmarked for the acquisition of a minority stake in its step-down subsidiary, Sahyadri Hospitals. The remaining funds will be used for general corporate purposes.

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JP Morgan India, UBS Securities India and DBS Bank India have been appointed as merchant bankers to manage the Manipal Hospitals IPO.

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