Synopsis

Manipal Health Enterprises, backed by Temasek and Ranjan Pai, will open its Rs 9,275-crore IPO for subscription on July 29 at a price band of Rs 560-590 per share. The issue comprises a fresh issue of Rs 8,000 crore and an OFS worth Rs 1,275.2 crore. The Bengaluru-based hospital chain is expected to list on August 5.

Bengaluru-based Manipal Health Enterprises, which operates the Manipal Hospitals network, is set to open its maiden public issue for subscription on July 29. The IPO has been priced in the range of Rs 560-590 per share.

Backed by Temasek and Ranjan Pai, the healthcare company aims to raise Rs 9,275 crore through the offering. The IPO comprises a fresh issue of Rs 8,000 crore and an offer for sale (OFS) of 2.16 crore equity shares worth Rs 1,275.2 crore.

Based on the prevailing grey market premium (GMP), the company's shares are expected to list at around Rs 645, implying a potential listing gain of about 9.5% over the upper issue price of Rs 590.

However, investors should note that the grey market is unofficial. The GMP is only an indicator of market sentiment and does not guarantee listing gains.

Imperius Healthcare Investments and Manipal Education and Medical Group India, along with investors TPG SG Magazine, Seventy Second Investment Company, Ammar Sdn Bhd, Novo Holdings Invest Asia and Phoenix Bear Investments, will be the selling shareholders in the offer for sale (OFS).

Also read:Manipal Health Enterprises sets price band for Rs 9,275 crore IPO, opens July 29

The anchor book will open for a day on July 28, ahead of the public issue, which will remain open for subscription from July 29 to July 31. The IPO allotment is expected to be finalised on August 3, while the company's shares are scheduled to list on the stock exchanges on August 5.

The company has reserved shares worth Rs 15 crore for its employees, who will be eligible to subscribe at a discount of Rs 56 per share to the final offer price. Other investors can bid for a minimum of 25 equity shares and in multiples of 25 thereafter.

Manipal Hospitals claims to be India's largest pan-India multispecialty hospital network by bed capacity and the second-largest hospital chain by number of hospitals. It operates 49 hospitals with more than 12,600 beds across 24+ cities.

Of the net proceeds from the fresh issue, Rs 5,378 crore will be used to repay borrowings, while Rs 574 crore will be utilised to acquire a minority stake in its step-down subsidiary, Sahyadri Hospitals. The remaining funds will be earmarked for general corporate purposes.

Read more: AI-led boom in IPOs raises concerns about a bust

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JPMorgan India, UBS Securities India and DBS Bank India are the book-running lead managers to the Manipal Hospitals IPO.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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