One of the largest hospital networks in India, Manipal Health Enterprises, is set to launch a massive initial public offering (IPO) that could bring in almost USD 1 billion (~INR 8,200 crore). With the backing of Temasek Holdings in Singapore, this IPO may potentially value Manipal Health at more than USD 7.5 – 8 billion (INR 61,500 – 65,600 crore), establishing it as a major player in the healthcare industry.
Manipal Health’s IPO – Structure
The OFS allows existing owners to cash out a portion of their holdings, and the additional funds will support:
- Strategic Partnerships and Acquisitions: Providing Manipal with the strength to play in a market where competitors are acquiring one another.
- Debt-reduction to improve the balance sheet’s appearance and lay the groundwork for future expansion free from financial constraints.
Manipal Health’s IPO – Timeline and Market Buzz
With ambitions to go public within the next year, the company is contacting bankers to make a pitch in February 2025. This IPO may rank among the largest healthcare IPO in India, showcasing Manipal’s impressive growth trajectory and robust market position. Over 61,500 crore rupees will definitely draw attention both domestically and internationally.
Through a USD 2 billion acquisition back in April 2023, Temasek acquired a major stake with 59% ownership. The shares are divided as follows:
- Temasek Holdings: ~59%
- Manipal Education and Medical Group Pvt. Ltd.: ~31%
- TPG Asia: ~10-11%
To maintain control while diversifying their stake, Temasek also wisely sold off up to 8% to major investors including Mubadala, Novo Holdings, and CalPERS.
Manipal Health’s Wide Reach
Manipal was founded by Ranjan Pai in 2010, at present it has more than 30 hospitals, 9,500 beds, and 5,000 doctors scattered across 14 Indian states. By making investments in the newest medical technology and growing its facilities, the company has established itself as a trusted healthcare provider from Bengaluru to Kolkata.
Financials At a Glance
Manipal’s financials speak volumes:
- FY23 Revenue: Up to INR 4,800 crore from INR 4,000 crore the year before.
- EBITDA Margin: Climbed to 26.6% from 23.2% in FY22.
- H1 FY24 Revenue: Hit INR 2,620 crore, with an EBITDA of INR 741 crore.
In FY23, occupancy slightly declined to 58%. However, the company smartly increased revenue per bed by 14% to compensate for the drop. For example, new beds in Jaipur, Goa, and Whitefield help them stay ahead of the demand curve.
The tendency of Indian healthcare corporations to scurry to public markets for expansion is reflected in this IPO, which is not just about Manipal. Manipal is poised to benefit from the surge in healthcare demand brought on by increased knowledge and insurance coverage.
Wrapping Up
The largest IPO by Manipal Health is noteworthy for the company as well as the healthcare industry as a whole. This money will be used by the company to expand and maintain its position as the industry leader in healthcare. Global investors are undoubtedly keeping an eye on them as Manipal set a new benchmark for healthcare listings in India with its financial clout and strategic vision.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
