Manipal Health Enterprises IPO off to slow start, subscribed 15% on opening day; retail portion booked 27%

Manipal Health Enterprises, which operates one of India's largest networks of multi-specialty hospitals, received a muted response from investors on the first day of its initial public offering (IPO), which opened for subscription on Wednesday.

By the end of Day 1, the issue was subscribed 0.15 times, with bids received for 1.31 crore shares against the 8.66 crore shares on offer, according to exchange data.

Among investor categories, the retail portion was subscribed 0.27 times, while the employee quota was booked 0.95 times. The non-institutional investor (NII) category saw 0.08 times the subscription, while the qualified institutional buyers (QIB) portion was subscribed 0.15 times.

Ahead of the IPO, the company raised ₹4,167 crore from anchor investors, including the Abu Dhabi Investment Authority and Allianz Global Investors Fund.

Manipal Hospitals claims to have the largest multi-specialty hospital network in India by bed capacity and is the country's second-largest hospital chain by the number of facilities. It operates 49 hospitals with more than 12,600 beds across 24+ cities.

Manipal Health Enterprises IPO details

The Manipal Health Enterprises IPO comprises a fresh issue of equity shares worth ₹8,000 crore and an offer for sale (OFS) of 2.16 crore equity shares aggregating ₹1,275.2 crore, taking the total issue size to ₹9,275 crore.

The company has fixed the price band at ₹560-590 per equity share with a face value of ₹2.

The Temasek- and Dr. Ranjan Pai-backed healthcare major's OFS includes share sales by promoters Imperius Healthcare Investments and Manipal Education and Medical Group India, along with existing investors TPG SG Magazine, Seventy Second Investment Company, Ammar Sdn Bhd, Novo Holdings Invest Asia, and Phoenix Bear Investments.

Notably, the OFS size has been halved from the 4.32 crore equity shares proposed in the draft red herring prospectus (DRHP) filed in March 2026. The Securities and Exchange Board of India (SEBI) approved the company's IPO proposal earlier this month.

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

Meanwhile, the grey market premium (GMP) for Manipal Health Enterprises stood at ₹10 per share, indicating that the stock could list at a 1.7% premium over the upper end of the price band of ₹590.

Allotment and listing details

Tentatively, the basis of allotment for the Manipal Health Enterprises IPO is expected to be finalised on Monday, August 3. The company is likely to initiate refunds on Tuesday, August 4, while shares will be credited to the demat accounts of successful bidders on the same day.

The shares of Manipal Health Enterprises are scheduled to be listed on the BSE and NSE on Wednesday, August 5.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.