Manipal Health shares listed at a decent premium of 11 percent on the exchanges on Wednesday, following a 4.92 times subscription to its initial public offering (IPO) in the primary market between July 29-31.

Shares of Manipal Health Enterprises were listed at Rs 652 per share on the NSE, a premium of 10.51 percent. The Rs 9,275.22-crore issue had a price band of Rs 560-590 per share.

On BSE, the shares of the Bengaluru-based company were listed at Rs 655 per share, a premium of 11.02 percent. The company's market capitalisation post listing of shares stood at Rs 86,157.21-crore.

Manipal Health Enterprises market debut was better than the expectations in the grey market, which had anticipated a flat listing.

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Prasenjit Paul, Fund Manager at 129 Wealth & Head of Research at Paul Asset, said " The longer-term case needs to be evaluated differently. Manipal’s borrowings increased from Rs 4,767 crore in FY25 to Rs 10,553 crore in FY26 following its acquisition-led expansion. Approximately Rs 5,553 crore or nearly 69% of the fresh issue is earmarked for debt repayment, while another Rs 574 crore will be used to acquire the remaining minority interest in Sahyadri Hospitals. The resulting reduction in leverage and finance costs could improve earnings quality after listing."

"Operationally, FY26 revenue increased 25.4% to Rs 10,336 crore, but profit declined approximately 15% to Rs 916.5 crore. Occupancy fell from 67.1% to 64.5%, adjusted EBITDA margin moderated from 26.27% to 25.58%, and growth was partly supported by an approximately 9% increase in ARPOB to Rs 68,938. Therefore, the investment case is not simply about rising healthcare demand. It depends on whether Manipal can integrate its acquisitions, raise occupancy, convert deleveraging into stronger profit growth and execute its planned addition of approximately 2,400 beds. Investors seeking listing gains may find the risk-reward unfavourable at the issue price."

Earlier, the company garnered Rs 4,167 crore from anchor investors, including Abu Dhabi Investment Authority and Allianz Global Investors Fund.

The company proposes to utilise Rs 5,378 crore from the fresh issue towards repayment or prepayment of borrowings of its subsidiary, Manipal Hospitals Pvt Ltd.

It has earmarked Rs 574 crore for acquiring the minority stake in step-down subsidiary Sahyadri Hospitals Pvt Ltd, while the remaining funds will be used for general corporate purposes.

Manipal Health operates a pan-India network of multispecialty hospitals offering services ranging from outpatient care to tertiary and quaternary interventions.