Manipal Health Enterprises, India's largest multispecialty hospital network, experienced a positive market debut on Wednesday, with its shares opening at ₹655 on the BSE, an 11.02% increase from the IPO issue price of ₹590. On the NSE, shares opened at ₹652, marking a 10.51% jump. This strong performance exceeded grey market expectations, which had predicted a flat-to-negative listing, and valued the Bengaluru-based company at an impressive $9.03 billion (₹86,157.21 crore).
The company's $960 million IPO was India's second-largest this year, following SBI Funds Management's July listing. The offering, which included a fresh issue of up to ₹8,000 crore and an Offer-for-Sale of 2.16 crore equity shares, was subscribed nearly five times, primarily driven by Qualified Institutional Buyers (QIBs) who subscribed 8.25 times their allocated portion. Non-institutional investors subscribed 1.02 times, while the retail investor portion was undersubscribed at 93%. Ahead of the IPO, Manipal Health raised ₹4,167 crore from anchor investors, including global players like Abu Dhabi Investment Authority (ADIA) and Morgan Stanley Asia, as well as Indian mutual funds such as ICICI Prudential MF.
Manipal Health plans to use ₹5,378 crore from the fresh issue 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 remaining funds allocated for general corporate purposes. The company, which operates over 13,000 beds across 49 hospitals, is betting on increasing demand for specialized healthcare. Analysts noted its valuation at 84.65 times its fiscal 2026 earnings at the upper end of the IPO price band, higher than competitors like Apollo, Fortis, and Max Healthcare.
While the strong listing reflects healthy investor demand, Shivani Nyati, head of wealth at Swastika Investmart, suggested that the premium valuation leaves limited near-term upside. She advised existing allottees to hold the stock, while fresh investors should await better entry levels or signs of further debt reduction. Manipal Health aims to add 2,400 beds, an over 18% increase, within the next three to four years, investing ₹40 billion in expansion. Its closest listed rival, Apollo Hospitals, has a market capitalization of approximately ₹1.3 trillion and nearly 10,000 beds.
