According to The Economic Times, Manipal Health Enterprises will launch its ₹9,275 crore IPO on July 29 with a price band of ₹560-590 per share. The price band announcement was made on July 24, as previously scheduled, making it one of the largest healthcare sector offerings in recent years. The offering comprises a fresh issue of shares worth ₹8,000 crore and an offer for sale (OFS) of ₹1,275.21 crore. This follows SBI Funds Management's successful large IPO earlier this year, which raised ₹9,813 crore and was subscribed 41.66 times. The ₹560-590 price band represents the final pricing structure after market consultations and regulatory approvals, with the company targeting a valuation of $8 billion. The ₹9,275 crore issue size represents approximately 164.5 million shares being offered to investors. As per Business Standard, the company will start taking investor orders on July 29 and plans to close bidding on July 31, with the one-day anchor book part opening on July 28.
As reported by The Economic Times, among the selling shareholders, Temasek-backed entities Imperius Healthcare Investments Pte., Manipal Education and Medical Group India Pte., and TPG SG Magazine Pte. are expected to offload their stakes through the OFS. Other major shareholders participating include existing investors TPG SG Magazine, Seventy Second Investment Company LLC, Ammar Sdn Bhd, Novo Holdings Invest Asia A/S and Phoenix Bear Investments LLC. The Manipal Group and private equity firm TPG are also likely to pare their holdings, with the total issue size expected to be close to $1 billion. The ₹560-590 price band represents the final pricing structure after market consultations and regulatory approvals. The offer-for-sale size has been reduced from 4.32 crore equity shares planned earlier as per the DRHP filing in March 2026. According to Business Standard, Temasek's holding will decline from 50% to about 44% after the IPO, while the promoter group's combined stake will fall from nearly 70% to around 62%. However, the nine-member board and existing governance structure will remain unchanged.
According to Business Standard, MD & CEO Dilip Jose reveals that the hospital chain will use the ₹8,000 crore fresh issue largely to repay debt, while pursuing organic expansion and selective acquisitions. As of March 31, 2026, the company had gross borrowings of about ₹10,553 crore and around ₹2,969 crore in cash and liquid investments, implying net debt of about ₹7,585 crore excluding lease liabilities. With the ₹8,000 crore fresh issue, the company can theoretically become net-debt zero. The ₹5,552.76 crore earmarked to repay or prepay borrowings at subsidiary Manipal Hospitals represents 47.47% of Manipal's consolidated borrowings as of May 31. Another ₹574 crore will finance the acquisition of an additional minority stake in Sahyadri Hospitals. The company plans to retain some debt or cash on the balance sheet to pursue acquisition opportunities, ensuring very low and comfortable leverage even after debt repayment. Group CFO Samir Agarwal confirmed that the IPO was not driven by the need to finance the Sahyadri acquisition, noting that the listing process had started before the deal and was temporarily paused to complete the acquisition.
As reported by CNBC TV18, Manipal Health plans to add 3,000 beds organically over the next three years, bringing total capacity to 16,000 beds. MD & CEO Dilip Jose stated that the company will focus on adding around 3,000 beds through greenfield and brownfield projects over the next three years, while pursuing acquisitions only when suitable opportunities arise. The expansion includes Juhu in Mumbai, Raipur, Pune and Bengaluru, with a large part of incremental capacity outside southern India. In Kolkata, the company has land at Rajarhat intended for a hospital that could reach around 2,000 beds. In Pune, the Wakad greenfield will add around 475 beds, while some Sahyadri hospitals and existing Manipal facilities are being expanded. The company currently operates 49 hospitals nationwide with 13,000 beds, including 19 in Karnataka contributing 43.85% of pro forma FY26 revenue. The company is also interested in adding two hospitals in the National Capital Region through acquisition. According to Business Standard, organic additions were just under 1,000 beds during the past five years, while acquisitions added about 5,548 beds across 31 hospitals. While the company has delivered strong revenue growth in recent years through acquisitions, Jose refrained from giving forward revenue guidance, saying execution and identifying the right opportunities will remain the immediate priorities.
According to CNBC TV18, Manipal Hospitals expects average revenue per occupied bed (ARPOB) to continue benefiting primarily from treating more complex cases rather than relying on price increases. Historically, ARPOB has grown by around 9-10% annually, with only 3-4% coming from pricing and the balance driven by a richer case mix. On hospital utilisation, the company said it is not working towards a fixed timeline to raise occupancy from the current 65% to its long-term target of 75-78%. Instead, it plans to increase patient volumes by adding more services and expanding its network. Management believes lower occupancy also reflects shorter patient stays, allowing faster bed turnover. The company invests ₹7.5-8 lakh per bed annually in maintenance capital expenditure, covering medical equipment, robotics, AI, and digital systems. Manipal Health has about 50 robotic systems across the network, including orthopaedic and surgical robots, and continues to add to them. The company has achieved significant turnarounds in acquired hospitals, with Columbia Asia's EBITDA margin improving from 30.51% in FY24 to 33.78% in FY26, while AMRI's rose from 21.27% to 23.79%.
