Manipal Health Enterprises Limited Files DRHP for INR 8,000 Cr IPO

Temasek-backed Manipal Health Enterprises Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to raise funds through an Initial Public Offering (IPO), marking one of the significant public issue plans in India’s healthcare sector.

The IPO consists of a fresh issue of equity shares worth INR 8,000 crore and an offer-for-sale (OFS) of up to 43.2 million equity shares by existing promoters and investors. The promoters participating in the OFS include Imperius Healthcare Investments Pte. Ltd and Manipal Education and Medical Group India Private Limited.

Several global investors, including TPG SG Magazine Pte. Ltd, Seventy Second Investment Company LLC, Ammar Sdn Bhd, Novo Holdings Invest Asia A/S, and Phoenix Bear Investments, LLC, will also offload shares as part of the offering.

The company stated that proceeds from the fresh issue will primarily be used to strengthen its balance sheet and expand its holdings. Around INR 5,378 crore will go toward repayment or prepayment of borrowings and accrued interest of its subsidiary, Manipal Hospitals Private Limited.

Another INR 574 crore is earmarked for acquiring minority stakes in its step-down subsidiary, Sahyadri Hospitals Private Limited. The remaining funds will be allocated for general corporate purposes.

Manipal Health Enterprises also indicated that it may consider a pre-IPO placement of up to INR 1,600 crore in consultation with its book-running lead managers. If such a placement is completed, the size of the fresh issue will be reduced accordingly.

The IPO will follow a book-building process, where not more than 50% of the net offer will be reserved for qualified institutional buyers. Retail individual bidders and non-institutional investors will be allocated at least 35% and 15% of the offer, respectively.

The company operates a wide network of multispecialty hospitals across India, offering services ranging from outpatient care to advanced tertiary and quaternary treatments. As of September 30, 2025, it operated 38 hospitals, which rises to 48 on a pro forma basis, with a licensed bed capacity of 10,761, or 12,367 beds on a pro forma basis, spread across 14 states and union territories.

Following its acquisition of Sahyadri Hospitals in October 2025, the company added 1,606 beds to its network. It further expanded its capacity with the launch of its 49th hospital in Bengaluru in November 2025, taking total licensed beds to 12,631 as of December 31, 2025.

In terms of operations, the company served 7.19 million patients in FY25 and 3.94 million patients in the six months ended September 30, 2025. It had over 11,000 doctors across its network during this period.

Financially, the company reported revenue from operations of INR 4,713 crore in the six months ended September 2025, with a net profit of INR 571.8 crore. For the full financial year FY25, revenue stood at INR 8,242.2 crore, compared to INR 4,839.6 crore in FY23, while net profit rose to INR 1,081.6 crore from INR 414.2 crore over the same period.

The IPO is being managed by a consortium of investment banks, including Kotak Mahindra Capital Company Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, J.P. Morgan India Private Limited, UBS Securities India Private Limited, and DBS Bank India Limited. KFin Technologies Limited has been appointed as the registrar for the issue.

The company plans to list its equity shares on both the BSE and NSE.