Manipal Health sets terms for ₹9,275 cr IPO

Manipal Health Enterprises has outlined the key terms of its upcoming initial public offering, setting a price band of ₹560–590 per share with a lot size of 25 equity shares. The total issue size is ₹9,275 crore, which is roughly equivalent to about $1 billion. This comprises a fresh issue of equity shares aggregating ₹8,000 crore and an offer-for-sale (OFS) component of ₹1,275.2 crore, representing 2.16 crore equity shares.

At the upper end of the price band, the implied market capitalisation of Manipal Health would be around ₹77,607.26 crore. On this basis, the company is targeting a valuation of about $8 billion through the IPO. The structure places greater emphasis on primary fundraising through the fresh issue, with a smaller secondary sale by existing shareholders via the OFS.

The IPO timetable has been set with the anchor book scheduled to open on July 28, 2026. The public subscription window will then run from July 29 to July 31, 2026, giving investors three days to place bids within the announced price band. The company expects its shares to list on stock exchanges on August 5, 2026, following completion of the allocation and settlement process.

The defined lot size of 25 equity shares sets the minimum application quantity for retail and other investors. Together with the price band, these parameters frame the ticket sizes for various investor categories and help determine overall demand during the book-building process.

The offer-for-sale component will be conducted by a group of existing shareholders. These include promoter-related entities Imperius Healthcare Investments and Manipal Education and Medical Group India. Other selling shareholders named in the offer are TPG SG Magazine, Seventy Second Investment Company, Ammar Sdn Bhd, Novo Holdings Invest Asia and Phoenix Bear Investments.

Temasek is expected to be the largest seller within the OFS portion of the IPO. Overall, the OFS in the public offering has been reduced to 2.16 crore equity shares, half of the 4.32 crore equity shares that had been proposed in the company’s draft red herring prospectus. This change increases the relative share of primary capital being raised for the company compared with secondary share sales.

Manipal Health plans to deploy a substantial part of the net proceeds from the fresh issue towards strengthening its balance sheet. The company intends to use ₹5,378 crore to repay or prepay borrowings, which would reduce its outstanding debt obligations. This allocation underscores a focus on deleveraging and improving financial flexibility.

In addition, Manipal Health has earmarked ₹574 crore from the fresh issue to acquire a minority stake in its step-down subsidiary Sahyadri Hospitals. The remaining funds from the primary capital raise are designated for general corporate purposes. Together, these planned uses indicate a mix of debt reduction and targeted expansion within the group’s existing hospital network.