Manipal Hospitals IPO Allotment Today: 4.92x Oversubscribed

The employee segment emerged as the strongest performer with 2.18 times subscription, receiving bids for 6.50 lakh shares against the reserved 2.80 lakh shares. As per The Financial Express, employees are being offered shares at a discount of ₹56 per share to the final offer price. The retail individual investor portion achieved 0.93 times subscription, receiving bids for 1.52 crore shares against the 1.64 crore shares reserved. The non-institutional investor segment subscribed 1.02 times, with bids received for 2.50 crore shares against the 2.46 crore offer. The Qualified Institutional Buyers portion subscribed 8.25 times, receiving bids for 40.21 crore shares against its ask of 4.87 crore shares. The grey market premium stands at negative ₹9, reflecting an estimated listing price of ₹581 based on the upper end of the price band, translating to gains of nearly 1.53% per share. Retail investors can apply in lots of 25 shares, requiring a minimum investment of ₹14,750 at the upper price band. The IPO has reserved 75% of the issue for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors, with KFin Technologies as the registrar and Kotak Mahindra Capital, Axis Capital, Goldman Sachs India, Jefferies India, JP Morgan India, UBS Securities India and DBS Bank India managing the public offer.

As reported by CNBC TV18, Manipal Hospitals achieved consolidated net profit of ₹916.5 crore and sales of ₹10,520.5 crore for the twelve months ended March 31, 2026, representing a 26% year-on-year increase in total income. The company's EBITDA rose to ₹2,795.9 crore from ₹2,247.1 crore a year earlier, while net profit declined from ₹1,081.7 crore in the previous year. The return on equity stands at 7% on the enlarged post-issue net worth of ₹16,426 crore, with return on capital employed at 11.3% against borrowing costs of approximately 9%. The interest costs consumed the entire operating profit growth in the previous year, rising ₹352 crore against a ₹312 crore increase in operating profit. The company's debt-to-equity ratio is 1.5 times as of FY26. As of March 2026, the company had total borrowings of ₹11,185 crore, with the proposed debt repayment expected to reduce outstanding debt by nearly 47.5%. The ₹8,000 crore fresh capital leaves only ₹1,900 crore for expansion plans, with the company needing additional funding for its planned 2,400 more beds by 2030. The company's revenue from operations increased from ₹6,171.63 crore in FY24 to ₹8,242.25 crore in FY25, before rising further to ₹10,335.75 crore in FY26, highlighting healthy growth driven by capacity additions, acquisitions and higher patient volumes.

According to CNBC TV18, Manipal Hospitals demonstrates strong operational metrics with average revenue per occupied bed (ARPOB) increasing from ₹61,742 in FY24 to ₹68,938 in FY26, growing 5.7% annually over FY24-26. The company maintains the fastest bed turnover in the industry with average length of stay at 2.8 days compared to 3.2 days at Apollo, 4.1 days at Max, and 4.2 days at Fortis. The occupancy rate stands at 64.5%, which is the lowest among the four major hospital chains, with inpatient revenue from complex specialties comprising 64.3% of total revenue. The company operates 13,037 licensed beds across its network, though only 6,227 beds are operational on a full-year basis. As per Live Mint, Manipal Health Enterprises claims to have the largest multi-specialty hospital network in India by bed capacity and is the country's second-largest hospital chain by number of facilities, operating 49 hospitals with more than 12,600 beds across 24+ cities. According to Crisil report, the company derives over 64% of revenue from cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics, and renal sciences (CONGO-R) specialties. As of March 31, 2026, the company operated 49 hospitals with 13,037 licensed beds and 21 clinics across India, employing over 24,000 people, including more than 11,000 nurses and 6,300 paramedics. The company has built a strong presence in Karnataka, Maharashtra, Goa and eastern India, while also becoming the only private hospital operator to lead Bengaluru, Kolkata and Pune in terms of licensed bed capacity, with nearly 47% of its beds located in metro cities.

As reported by CNBC TV18, around 46% of the company's revenue comes from Karnataka, signalling significant geographic concentration risk. The Sahyadri Hospitals acquisition continues to underperform with 62% occupancy and ₹40,555 per bed daily revenue, which is approximately 40% below the group average. The acquisition cost ₹5,841 crore and is expected to take two to three years to turn around. The OFS includes stake sales by Imperius Healthcare Investments, Manipal Education and Medical Group India, TPG SG Magazine, Seventy Second Investment Company, Ammar Sdn Bhd, Novo Holdings Invest Asia, and Phoenix Bear Investments. The company carries ₹8,121 crore of goodwill on its balance sheet, representing close to half of net worth, with a history of writing off ₹114 crore on its HealthMap diagnostics arm in FY24. The promoter group's stake will decrease to 61.84% from 69.87% after the IPO, with the company needing additional funding for its planned expansion. Following the issue, the company plans to use ₹574 crore to acquire the remaining 9.84% stake in Sahyadri Hospitals and ₹574 crore for acquiring a minority stake in its step-down subsidiary, Sahyadri Hospitals, while the remaining funds will be deployed for general corporate purposes and future growth initiatives.

The ₹9,275 crore IPO received strong anchor investor support with ₹4,167 crore raised on Tuesday, a day before the public issue launch, making it the second-largest IPO by issue size after SBI Funds Management. Prominent anchor investors included Goldman Sachs, Morgan Stanley, Franklin Templeton, Invesco, Nomura, Mirae Asset, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Life Insurance, Axis Mutual Fund, Motilal Oswal Mutual Fund, and HDFC Life Insurance. The grey market premium stands at negative ₹9, indicating an estimated listing price of ₹581 against the upper price band of ₹590, representing a potential discount of 1.53% per share. According to Business Standard, the healthcare provider's ₹9,275-crore IPO was subscribed 4.92 times on the final day, with qualified institutional buyers bidding 8.25 times their quota, demonstrating strong institutional confidence in the company's growth prospects. Domestic brokerage Master Capital Services Ltd has assigned an "Invest Now" rating to the Manipal Health IPO, citing the company's leadership position in India's organised healthcare sector, robust hospital network and favourable long-term industry outlook. The brokerage believes Manipal Health is well placed to benefit from rising healthcare spending, increasing insurance penetration, ageing demographics and growing demand for specialised medical care across the country. The public issue 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, taking the total issue size to ₹9,275.22 crore with the price band fixed at ₹560-590 per share.