Manipal Health Enterprises, a Bengaluru-based hospital chain, is scheduled to list its ₹9,275.22 crore (approximately $1.1 billion) IPO on the BSE and NSE on August 5. Market participants anticipate a cautious listing debut, with grey market trends suggesting a mild discount of ₹5 to ₹6 against the upper price band of ₹590. This indicates an estimated listing price of approximately ₹584 per share.
The IPO, which was open for subscription from July 29 to July 31, comprised a fresh issue of 13.56 crore equity shares worth ₹8,000 crore and an Offer for Sale (OFS) of 2.16 crore shares valued at ₹1,275.22 crore. The total issue size amounted to ₹9,275.22 crore, with the price band set at ₹560 to ₹590 per share. Despite the substantial size, the overall public issue was subscribed 4.92 times, primarily driven by Qualified Institutional Buyers (QIBs), whose portion was subscribed 8.25 times. The Non-Institutional Investors (NII) category saw moderate interest at 1.02 times subscription, while the Retail Individual Investors (RII) segment was subscribed 93%.
Analysts have expressed mixed views on the listing. Mahesh M. Ojha, Vice President – Research & Business Development at Kantilal Chhaganlal Securities Pvt. Ltd., noted Manipal Health Enterprises' rich valuation at an FY26 P/E multiple of 85.67x, higher than some listed hospital peers. He expects a flat-to-discount listing and advises allotted investors to consider booking profits if there are meaningful listing gains. Conversely, Tushar Badjate, Director at Badjate Stock & Shares Pvt. Ltd., highlighted the structural growth of India's healthcare sector, positioning Manipal Health Enterprises to create long-term value despite its premium valuation.
The company plans to use ₹5,378 crore of the fresh issue proceeds to repay or prepay borrowings of its subsidiary, Manipal Hospitals Pvt. Ltd., and ₹574 crore to acquire a minority stake in Sahyadri Hospitals Pvt. Ltd., with the remainder for general corporate purposes. Ojha pointed out that the company lags peers in key operating metrics like bed occupancy and declining return on capital employed (ROCE), and that the IPO proceeds are not primarily for significant capacity expansion. Darshan Rathod, COO at Multyfi, advised investors to have realistic listing expectations, suggesting limited listing gains due to the IPO's pricing already reflecting much of the company's future growth potential.
The Grey Market Premium (GMP) fluctuated significantly, from a high of ₹35 to a low of ₹-15 over 12 sessions, eventually settling at a pessimistic ₹3, which indicated an estimated listing price of ₹593, a mere 0.51% above the IPO price of ₹590. However, other sources reported a GMP of ₹-5 to ₹-6, implying a listing around ₹584. The muted GMP trend and analyst cautions suggest that while the company has strong fundamentals, immediate listing gains may be limited.
