Manipal Health Enterprises IPO opens on July 29: Check price band, issue size & more

 Bengaluru-based Manipal Health Enterprises, which operates the Manipal Hospitals network, will open its maiden public issue for subscription on July 29. The IPO has been priced in the range of Rs 560-590 per share, and the Temasek- and Dr Ranjan Pai-backed company plans to raise Rs 9,275 crore through the issue.

The IPO comprises a fresh issue of shares worth Rs 8,000 crore and an offer-for-sale of 2.16 crore equity shares worth Rs 1,275.2 crore. At the upper end of the price band, the company’s market capitalisation would be around Rs 77,607.26 crore, lower than its earlier planned valuation of about Rs 1 lakh crore.

The one-day anchor book will open on July 28, while the public issue will close on July 31. Manipal Health Enterprises is scheduled to finalise the share allotment by August 3 and list on the bourses on August 5. Investors can bid for a minimum of 25 equity shares and in multiples of 25 shares thereafter.

Promoters 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, are the selling shareholders in the offer-for-sale (OFS). The OFS size has been reduced from 4.32 crore equity shares planned earlier .

The company has reserved shares worth Rs 15 crore for employees, who will get them at a discount of Rs 56 per share to the final offer price. It has allocated 50 per cent shares for qualified institutional investors, while non-retail investors have a 15 per cent allocation in the IPO. Retail investors will get 35 per cent shares in the issue.

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

Of the net proceeds from the fresh issue, the company will use Rs 5,378 crore to repay loans and Rs 574 crore for the acquisition of a minority stake in its step-down subsidiary, Sahyadri Hospitals. The remaining amount 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 are the merchant bankers for the issue, while KFin Technologies is the registrar. The shares will be listed on both the BSE and NSE.