Manipal Health IPO subscribed 4.92x on final day; GMP slips to zero

Manipal Health Enterprises' ₹9,275-crore initial public offering (IPO) managed to sail through as qualified institutional buyers (QIBs) rescued the issue on the final day of bidding. The public issue of the multi-specialty hospital chain operator was subscribed 4.92 times by the close of bidding, after receiving subscriptions of 0.15 times on Day 1 and 0.47 times on Day 2.

The Manipal Health IPO, which opened on July 29 and closed on July 31, received bids for 44.30 crore equity shares against 9.01 crore shares on offer at an issue price of ₹590 apiece, according to exchange data.

The institutional portion emerged as the biggest driver of the issue, with the QIB category subscribed 8.25 times. Within this segment, foreign institutional investors (FIIs) bid for 14.66 crore shares, mutual funds applied for 14.02 crore shares, domestic financial institutions sought 2.71 crore shares, while other institutional investors bid for 8.83 crore shares.

The non-institutional investor (NII) category was subscribed 1.02 times. The portion reserved for applicants bidding above ₹10 lakh was subscribed 1.08 times, while the category for bids between ₹2 lakh and ₹10 lakh remained undersubscribed at 0.90 times.

Retail participation remained subdued, with the retail individual investor (RII) segment subscribed 0.93 times. Meanwhile, the employee quota was subscribed 2.19 times.

GMP drops to zero

Despite the healthy overall subscription, sentiment in the grey market weakened considerably. The Manipal Health IPO's grey market premium (GMP), which stood at ₹9 per share when the issue opened and fell to ₹6 on the second day, dropped to zero by the close of bidding on Friday.

Based on the upper price band of ₹590 per share, the estimated listing price now stands at ₹590, implying no listing premium, compared with an estimated premium of 1.5% at the start of the issue.

Ahead of the IPO, Manipal Health raised ₹4,167 crore from 133 anchor investors by allotting 7.06 crore equity shares at ₹590 apiece, the upper end of the price band. The anchor book saw participation from several marquee global and domestic investors, including Abu Dhabi Investment Authority, Norway's Government Pension Fund Global, Fidelity, Templeton, Allianz Global Investors, and multiple domestic mutual funds. Indian mutual funds alone were allotted 2.83 crore shares across 55 schemes managed by 21 fund houses.

The IPO comprises a fresh issue of equity shares worth ₹8,000 crore and an offer for sale (OFS) of up to 2.16 crore equity shares by existing shareholders. Promoters Imperius Healthcare Investments and Manipal Education and Medical Group India are among the selling shareholders, along with investors such as TPG SG Magazine, Novo Holdings Invest Asia, Seventy Second Investment Company LLC, Ammar Sdn Bhd, and Phoenix Bear Investments.

The company plans to utilise ₹5,552.7 crore from the fresh issue proceeds to repay borrowings of its subsidiary, Manipal Hospitals Private Limited. Another ₹574 crore will be used to acquire the minority stake in Sahyadri Hospitals Private Limited, while the remaining proceeds will be used for general corporate purposes.

According to the company's prospectus, Manipal Health is India's largest pan-India multispecialty hospital network by bed capacity and the second-largest hospital chain by the number of hospitals. As of March 31, 2026, it operated 49 hospitals with 13,037 licensed beds across 14 states and Union Territories. For FY26, it reported revenue from operations of ₹10,329.8 crore, which increased to ₹10,933.6 crore on a pro forma basis.

The basis of allotment is expected to be finalised next week, with Manipal Health's shares scheduled to list on the BSE and NSE on August 5, 2026.