Manipal Hospitals targets December IPO filing, ₹1 trillion-plus valuation
Listed peers of the Manipal Group include Apollo Hospitals Enterprise, with a market capitalization of ₹1.098 trillion, Max Healthcare with ₹1.104 trillion, and Fortis Healthcare with ₹77,020 crore.
Mumbai: Temasek-backed hospitals chain Manipal Health Enterprises Ltd is looking to file its draft red herring prospectus with the capital markets regulator in December. The initial public offer (IPO) will see a mix of primary and secondary fundraising of more than $1 billion, making it one of the largest healthcare IPOs in the region.
The Ranjan Pai-founded firm is aiming for a valuation of around ₹1 trillion to ₹1.2 trillion, according to three people with direct knowledge of the company’s plans. The final decision on the filing timeline, the quantum of the raise, and whether any long-term investor will be brought onto the cap table will be made at the company’s board meeting to be held next week, these people said.
“The pitches to investors range around ₹1-1.2 trillion, given the size and scale the company has achieved in the last two years," one of the persons cited above said on condition of anonymity.
In April 2023, Temasek increased its holding by acquiring a 41% stake in the company for more than $2 billion, valuing it at nearly $4.8 billion, or about ₹40,000 crore. It acquired stake from Manipal founder Ranjan Pai and other investors, including NIIF and TPG, to increase its shareholding to around 59%. Manipal Education and Medical Group Pvt. Ltd retains around 31% of the company, with TPG holding 10-11%.
Last year, the company sold up to an 8% stake to incoming investors, including Mubadala Investment Co. (Mubadala), Novo Holdings and the California Public Employees’ Retirement System (CalPERS), in a bid to derisk its holdings.
Valuation goal
The company is expected to raise around ₹8,000-10,000 crore through the IPO. Investment banks Kotak Mahindra Capital, Axis Capital, Jefferies, Goldman Sachs, JPMorgan and Motilal Oswal are among the bankers managing the issue, Mint had reported earlier.
“The IPO will see the company raise a large primary capital, and given that not many investors want to sell, the offer for sale (OFS) will be a smaller portion just to meet the regulatory requirement," the second person cited above said, requesting anonymity. The decision of who is likely to participate in the OFS will also be made at the board meeting next week.
According to the revised Securities and Exchange Board of India (Sebi) norms, for companies with a post-issue market capitalization of ₹1-5 trillion, the minimum dilution has been reduced to 2.75% of the post-issue market cap, and the public offer must be a minimum of ₹6,250 crore. “A final call on that front, too, will be taken next week," the second person cited above added.
The company does not need capital immediately, but it will boost its war chest for a large acquisition through a primary capital raise during the IPO. Some of the capital is also likely to help pare down the debt on its books.
As on 31 March 2025, the company had around ₹5,200 crore debt on a consolidated basis.
Healthcare giants
The company, which had planned to file for its IPO by June this year, had to delay its filing after agreeing to acquire Sahyadri Hospitals from Ontario Teachers’ Pension Plan (OTPP) for ₹6,400 crore. With the acquisition, the total bed count of the chain exceeded 12,000 as on date, making it one of the largest healthcare operators in Asia.
In November 2024, Quality Care India Ltd, backed by Aster DM Healthcare Ltd and Blackstone, announced that it had signed an agreement to merge with Aster DM, creating one of the top three hospital chains in India with more than 10,150 beds. The reverse merger has now created the largest listed healthcare provider in India.
Queries emailed to Manipal Health’s spokesperson did not elicit a response. A Temasek spokesperson declined to comment.
Founded in 2010 by Ranjan Pai, Manipal Hospitals Enterprises currently has a pan-India footprint comprising over 38 hospitals and more than 5,000 doctors. Its network of hospitals spans cities such as Bengaluru, Mangaluru, Mysuru, Vijayawada, Salem, Dwarka, Palam Vihar, Goa, Jaipur, Ghaziabad, Patiala, Pune and Kolkata, among others.
As per an India Ratings and Research ratings release in July, the company’s consolidated revenues as on 31 March stood at ₹8,242 crore against ₹6,144 crore in the previous year. The company reported a healthy earnings before interest, tax, depreciation and amortization (Ebitda) margin of 25.8% in fiscal year 2025, according to the release.
In the Indian healthcare sector, significant consolidation has occurred over the last five years, with the top groups acquiring or merging to create larger platforms. Some of the listed peers of the Manipal Group include Apollo Hospitals Enterprise with a market capitalization of ₹1.098 trillion; Max Healthcare with ₹1.104 trillion; and Fortis Healthcare with ₹77,020 crore as on Friday on the National Stock Exchange.
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