Mumbai: India’s leading hospital chain Manipal Health Enterprises is all set to raise about $960 million through its upcoming IPO, with shares priced between ₹560-590. According to widely published reports, this IPO will be a combination of an offer for sale (OFS) by existing promoters and investors and a fresh issue, though there is no mention of the exact proportions. For the corporate hospital chain, a big chunk of the money raised will go towards paying back acquisition-related debt, after the company spent ₹6,400 crore to acquire Maharashtra-based Sahyadri Hospitals last year, besides its ₹2,400 crore acquisition of Kolkata-based AMRI Hospitals as well. This has made the Temasek-backed company one of the largest hospital chains in the country, managing about 12,000 beds across a network of 49 hospitals. For the company, the IPO represents the easiest way out to address this debt, with demand for high-quality healthcare remaining robust from all sections of society.
The OFS component will see about 16.45 crore shares being sold by existing investors, including TPG SE Magazine, Medical Group India, Manipal Education and Imperius Healthcare Investments, amongst others. The IPO is expected to value the operator of Manipal Hospitals at about $8 billion dollars.
The IPO is expected to open on July 29 and close by July 31, with the company choosing to seek a lower valuation due to cautious investor sentiment as the Middle East tensions continue to affect the global markets.
This would be the second-largest IPO in India this year, after SBI Mutual Fund’s AMC raised $1 billion earlier this month.
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