Manipal Hospitals IPO: DRHP To Be Filed Soon; Size Expected To Be Over Rs 9,000 Crore

By Nimitt Dixit

Manipal Hospitals is likely to file its preliminary papers in the coming with the capital markets regulator SEBI to raise funds via an initial public offering, people in the know told NDTV Profit. The company will file for over Rs 9,000 crore ($1 billion) IPO despite the current market volatility. The IPO is setting the stage for one of the biggest such listing by a hospital operator in India.

The offer is likely to consist of offer for sale and fresh issue components, sources told NDTV. The Temasek-backed company is looking at a Rs 1.2 lakh crore ($13 billion) valuation.

Backed by Singapore's state-owned investor Temasek Holdings, Manipal could emerge as India's most valuable healthcare operator following its proposed listing, reflecting growing investor interest in the country's hospital platforms.

The listing comes at a time when the IPO market has slowed as companies delay launches amid cautious investor sentiment, weaker listing gains and geopolitical tensions.

A large pipeline of companies remains ready to list, but issuers are holding back deals while markets adjust to lower valuations and uncertain global conditions.

ALSO READ: India's IPO Engine Slows As Issuers Hold Back Deals Despite Large Pipeline — Here's Why

The company has been expanding aggressively through acquisitions, with its latest move being the purchase of Sahyadri Hospitals. In June, KKR announced a $600 million financing package to support Manipal's growth ambitions.

During the same period, Bloomberg reported that Manipal had asked bankers to temporarily pause its IPO plans as it focused on acquiring Sahyadri from Ontario Teachers' Pension Plan Board, which owns the Maharashtra-based hospital network.

Part of a diversified conglomerate with interests spanning healthcare, education and insurance, Manipal operates more than 10,500 beds across its network, according to company data.

Currently, Max Healthcare Institute holds the title of India's most valuable hospital chain. The most recent major listing in the sector was by Dr Agarwal's Health Care.