Manipal Health Enterprises Ltd. is anticipated to have a flat stock market debut in Mumbai following its $960 million initial public offering. This expectation stems from grey market trading, which suggests a cooling of investor sentiment.
The initial public offering (IPO) had a price band of ₹560 to ₹590 per share, valuing the company at over ₹77,600 crore ($9.2 billion) at the upper end. However, the grey market premium (GMP) was indicating a muted listing, with some analysts expecting a flat to discount debut. For example, the GMP was observed at around ₹2.5 over the issue price, and at times even at a discount of ₹5 to ₹6, pointing towards an estimated listing price of approximately ₹584 per share compared to the upper price band of ₹590.
Mahesh M. Ojha, Vice President – Research & Business Development at Kantilal Chhaganlal Securities Pvt. Ltd., advised allotted investors to consider booking profits if there were meaningful listing gains and new investors to wait for one to two quarters for better visibility on earnings and operations. He noted the company's rich valuation with an FY26 P/E multiple of 85.67x and an EV/EBITDA multiple of 29.4x, which he found relatively reasonable but still higher than some listed peers. The company also lagged in key operating metrics such as lower bed occupancy and declining return on capital employed (ROCE).
The IPO, which aimed to raise ₹9,275.22 crore, saw an overall subscription of 4.92 times. Qualified Institutional Buyers (QIBs) subscribed 8.25 times, Non-Institutional Investors (NIIs) subscribed 1.02 times, but the Retail Individual Investors (RIIs) segment was undersubscribed at 93%. The proceeds from the fresh issue, amounting to ₹8,000 crore, were primarily intended to repay debt ($640 million) and acquire a minority stake in Sahyadri Hospitals ($69 million), not for significant capacity expansion.
Despite the cautious outlook, Tushar Badjate, Director at Badjate Stock & Shares Pvt. Ltd., highlighted that India's healthcare sector is structurally underpenetrated and poised for long-term demand growth due to an aging population, positioning Manipal Health Enterprises to potentially create long-term value for patient investors.
