Manipal Health Enterprises IPO shares listing: Check latest GMP before stock market debut

Shares of Manipal Health Enterprises shall make their stock market debut on Wednesday, August 05. The leading hospital chain is headed for a muted listing at Dalal Street considering subdued bidding, weak grey market premium (GMP) and expectations from analysts, who it is listing close to its issue price.

Ahead of its listing, Manipal Health Enterprises shares saw a sharp correction in their grey market premium (GMP), despite the improving market sentiments Last heard, it was commanding a GMP of Rs 3-5 per share, suggesting a flat listing for the investors. Its GMP stood around Rs 10 apiece, during the bidding period, which had once slipped into disocunt.

The IPO of Manipal Health Enterprises ran for subscription between July 29 and July 31. It had offered its shares in the price band of Rs 560-590 per share with a lot size of 25 shares. The company eyed to raise a total of Rs 9,275 crore via IPO, which included a fresh share sale of Rs 8,000 crore and an offer-for-sale (OFS) of up to 2,16,13,834 equity shares worth Rs 1,275 crore.

Considering the rich valuation, subdued operating metrics, limited growth use of IPO proceeds, and the weak subscription trend—particularly the under-subscription in the retail investor category—we expect the listing performance to remain muted, with the possibility of a flat-to-discount listing, said Mahesh M. Ojha, VP of Research at Kantilal Chagganlal Securities.

"Allotted Investors may consider booking profits on any meaningful listing gains. Fresh investors are advised to wait for 1–2 quarters to gain better visibility on earnings growth, operational improvements, and a more attractive valuation before considering an entry," he added.

The issue was overall subscribed nearly 4.92 times with nearly 3.60 lakh applications, fetching bids for more than Rs 26,000 crore. The portion for qualified-institutional bidders (QIBs) was subscribed 8.25 times. The quotas for non-institutional investors (NIIs) and Employees quota were booked at 1.02 times and 2.19 times, respectively. Retail portion was booked 93 per cent only.

Prasenjit Paul, Fund Manager at 129 Wealth & Head of Research at Paul Asset said, "We continue to expect a muted listing for Manipal Health IPO.  Investors seeking listing gains may find the risk-reward unfavourable at the issue price. Those with a two-to-three-year horizon can monitor these execution triggers, because the present valuation leaves little margin for disappointment."

Incorporated in 2010, Bengaluru-based Manipal Health Enterprises is a healthcare service provider, operating a large network of multi-specialty hospitals, clinics, and diagnostic centres across the country. It offers a wide range of healthcare services including tertiary and quaternary care, organ transplants, oncology, cardiology, neurology, orthopaedics, and preventive healthcare.

Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JP Morgan India, UBS Securities India and DBS Bank were the book running lead managers of Manipal Health IPO and Kfin Technologies Ltd was appointed as the registrar of the issue. Shares of the company shall be listed on both BSE Ltd and NSE.