Big news for the Indian healthcare sector! Manipal Hospitals, the largest hospital chain in the country, has shortlisted top investment banks for their long pending USD 1 billion IPO. As per reports, the Temasek-backed healthcare major will file DRHP by June 2025 and list by the end of FY 2026. The banking consortium chosen to manage the IPO includes global and domestic heavyweights:
- Goldman Sachs
- Kotak Mahindra Capital
- Axis Capital
- JP Morgan
- Jefferies
While mandates are not yet issued, these banks are in advanced talks. This is a big moment for the company as it goes public, with growing investor appetite for large healthcare investments.
Manipal Hospitals – Valuation and Fundraising Plans
The IPO is expected to value Manipal Hospitals between USD 8 to 10 billion. The company will raise around INR 5,000-6,000 crores through fresh issue of shares and offer for sale by existing investors. Sources say the company doesn’t have any immediate funding requirements but is building a corpus for strategic acquisitions and debt repayment. Experts believe the IPO will strengthen their balance sheet and open up new healthcare verticals.
Ownership and Recent Investments
Manipal Hospitals has received huge investments. In April 2023, Temasek increased their stake to around 59% after buying a 41% stake for over USD 2 billion from founder Ranjan Pai and other investors like NIIF and TPG. Manipal Education and Medical Group has around 31% and TPG has around 10-11%. Last year, Temasek reduced risk by selling 8% of its holding to new investors Mubadala Investment Co., Novo Holdings, and CalPERS. The changing ownership structure reflects global institutional investor confidence and long-term growth story.
Operational Footprint and Growth
Founded by Ranjan Pai in 2010, Manipal Hospitals has grown to a pan-India network of over 30 hospitals, with over 9,500 beds and 5,000 doctors. It has a presence in key cities like Bengaluru, Mangalore, Mysore, Vijayawada, Salem, Dwarka, Palam Vihar, Goa, Jaipur, Ghaziabad, Patiala, Pune and Kolkata. The company has made strategic acquisitions in recent years to strengthen its presence in Tier-2 and Tier-3 cities.
According to India Ratings & Research, Manipal Hospitals’ consolidated revenue grew to INR 4,800 crore in FY23 from INR 4,000 crore in FY22, with EBITDA margins improving to 26.6% from 23.2%. Occupancy levels moderated to 58% due to bed additions in Whitefield, Goa, and Jaipur, while average revenue per occupied bed grew 14% y-o-y. The company has already clocked consolidated revenue of INR 2,619 crore and EBITDA of INR 741 crore in H1 FY24. Analysts expect these numbers to improve post-IPO as capital inflows support infrastructure development and service diversification.
Sector Impact
If Manipal Hospitals IPO succeeds, it could be one of the biggest listings in the Indian healthcare space after the merged Aster and Blackstone-backed Quality Care. The healthcare sector is seeing a lot of consolidation and Manipal’s listing could further increase interest in hospital chains and medical services. Experts say this IPO could set a new benchmark for hospital IPO valuations in India.
As Manipal Hospitals gets ready to go public, all eyes are on what it does next — in terms of strategic acquisitions and expansion and how it uses its scale and financials to stay ahead in India’s growing healthcare market. The IPO will be watched by competitors and investors alike for clues on sector trends and future listing opportunities.