Manipal Health Enterprises shares list at 11% premium to IPO price, beat estimates

Manipal Health Enterprises made a positive debut on the domestic bourses on Wednesday, with shares of the multispecialty hospital operator listing at a 11% premium to the issue price amid a firm broader market.

Manipal Health shares listed at ₹655 on the BSE, a premium of 11.02% over its IPO price of ₹590, taking the company's market capitalisation to ₹86,157.21 crore. On the NSE, the stock debuted at ₹652, up 10.51% from the issue price.

Meanwhile, the equity benchmarks – Sensex and Nifty50 – were trading higher by 0.5% each, tracking firm cues from global peers.

Beats Street estimates

The listing significantly exceeded grey market expectations. Ahead of its debut, Manipal Health shares were commanding a grey market premium (GMP) of around ₹3, implying an expected listing price of about ₹593 per share, or a marginal premium of 0.51%.

Manipal Health Enterprises' ₹9,275-crore initial public offering (IPO), which was open for subscription between July 29 and July 31, sailed through after qualified institutional buyers (QIBs) rescued the issue on the final day of bidding. The IPO was subscribed 4.92 times overall, after receiving subscriptions of 0.15 times on Day 1 and 0.47 times on Day 2.

The IPO received bids for 44.30 crore equity shares against 9.01 crore shares on offer, according to exchange data. Institutional investors emerged as the biggest drivers of the issue, with the QIB portion subscribed 8.25 times. Within this category, 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 applications 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 reservation portion was subscribed 2.19 times.

The IPO comprised 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 were among the selling shareholders, along with investors including TPG SG Magazine, Novo Holdings Invest Asia, Seventy Second Investment Company LLC, Ammar Sdn Bhd and Phoenix Bear Investments.

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 attracted 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 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 balance will be used for general corporate purposes.

According to its prospectus, Manipal Health is India's largest pan-India multispecialty hospital network by bed capacity and the country's 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, the company reported revenue from operations of ₹10,329.8 crore, which stood at ₹10,933.6 crore on a pro forma basis.

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