Manipal Health Enterprises, operating as Manipal Hospitals, is preparing to formally market its planned initial public offering (IPO) to raise over $1 billion. Investor meetings have already begun, with the company targeting a valuation of approximately $12 billion during two weeks of discussions with both domestic and international investors. Some reports indicate a valuation target ranging from $8 billion to $13 billion.
The IPO includes a fresh issue of shares worth approximately 80 billion rupees (around $960 million to $1.1 billion) and a secondary offering of up to 43.23 million shares, representing about a 3.66% stake, by existing investors. These selling shareholders include TPG, Temasek, Ammar Sdn Bhd, Novo Holdings Invest Asia, Phoenix Bear Investments, Seventy Second Investment Company, and Manipal Education and Medical Group India.
Manipal Hospitals filed its draft prospectus with India's market regulator in March. The proceeds from the fresh issue are largely designated for debt repayment, with about 5,378 crore rupees ($645 million) aimed at repaying borrowings. Additionally, 574 crore rupees ($69 million) will be used to acquire a minority stake in Sahyadri Hospitals. The company, backed by Temasek, is working with several advisors, including Kotak Mahindra Capital, Axis Bank, Goldman Sachs Group, JPMorgan Chase, Jefferies Financial Group, UBS Securities, and DBS.
