Manipal Health clears ₹5,310 crore debt using IPO proceeds, eyes expansion & technology push

Manipal Health Enterprises, which runs Manipal Hospitals, has repaid ₹5,310 crore of debt using money raised through its IPO. The repayment is expected to reduce the company’s interest costs and give it more room to invest in expansion, technology and talent, CNBC TV 18 reported on Saturday.

The company has fully redeemed listed non-convertible debentures (NCDs) worth ₹5,310 crore issued by its wholly owned subsidiary, Manipal Hospitals Private Limited.

The repayment included the outstanding NCD principal, accrued interest and applicable prepayment or early redemption costs.

IPO money used to repay debt

Manipal Health said the repayment was carried out as part of the plan outlined in its IPO prospectus dated July 31, 2026.

The company said the move will help reduce its debt and interest burden and provide greater financial flexibility for expansion and other investments.

Commenting on the redemption, Sameer Agarwal, Chief Financial Officer, Manipal Health Enterprises, said, “By deploying the IPO proceeds towards debt repayment as planned, we are strengthening our balance sheet, reducing our interest burden and creating greater financial headroom to support our growth plans.”

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He added, “This gives us greater flexibility to continue investing in capacity, technology and talent while remaining focused on delivering quality and affordable healthcare.”

The company said the debt reduction is expected to provide greater financial flexibility for expansion and investment, while supporting its focus on profitable growth and operational efficiency.

Manipal Hospitals has a network of 50 multispecialty hospitals with more than 13,000 licensed beds across 14 states and union territories, according to the company. The network is supported by more than 11,000 doctors and 25,000 employees and serves over 7 million patients annually.

Manipal Health Q1 performance

In Q1 FY27, Manipal Health Enterprises reported a 7.7% year-on-year decline in net profit to ₹231 crore, compared with ₹250 crore in the corresponding quarter last year.

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Revenue, however, rose 38.1% year-on-year to ₹3,091 crore from ₹2,238 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25.6% to ₹736.5 crore from ₹586.5 crore. The EBITDA margin narrowed to 23.8% from 26.2% a year earlier.

Shares of Manipal Health Enterprises closed at ₹736.55, up 2.08% from its previous close on the National Stock Exchange.