Manipal Health Enterprises, the Bengaluru-based healthcare chain, has secured market regulator Sebi's approval for an initial public offering (IPO) worth up to Rs 8,000 crore, according to a report by Business Today. The IPO is one of the largest in India's pipeline, alongside the National Stock Exchange's planned Rs 30,000-crore listing.
IPO Structure
The IPO comprises a fresh issue of shares worth up to Rs 8,000 crore and an offer for sale (OFS) of up to 4.3 crore equity shares by promoters and existing investors, Business Today reported. Promoters selling shares include Imperius Healthcare Investments and Manipal Education and Medical Group India. Other selling shareholders are TPG SG Magazine, Seventy Second Investment Company, Ammar, Novo Holdings Invest Asia A/S, and Phoenix Bear Investments.
Use of Proceeds
According to the draft red herring prospectus (DRHP), a significant portion of the fresh issue proceeds will be deployed to reduce debt. Out of the Rs 8,000 crore, Rs 5,378 crore will be used to repay or prepay borrowings and accrued interest of its material subsidiary, Manipal Hospitals. Another Rs 574 crore will go toward acquiring a minority stake in a step-down subsidiary, Sahyadri Hospital.
| Use of Proceeds | Amount (Rs crore) |
|---|---|
| Repayment of borrowings of Manipal Hospitals | 5,378 |
| Acquisition of minority stake in Sahyadri Hospital | 574 |
| Remaining proceeds | 2,048 |
Other Offerings in Pipeline
The IPO pipeline is gathering momentum, Business Today noted. The National Stock Exchange (NSE) is targeting a Rs 30,000-crore IPO in September that could value the exchange at over Rs 5 lakh crore. Separately, furniture and appliance rental platform Rentomojo also received Sebi's nod on Monday for its IPO, which comprises a fresh issue of shares worth up to Rs 150 crore and an OFS of up to 2.8 crore shares.
Key Selling Shareholders
The OFS involves promoters and existing investors reducing their stakes. Imperius Healthcare Investments and Manipal Education and Medical Group India are among the promoters selling shares. Other notable selling shareholders include private equity funds TPG SG Magazine and Novo Holdings Invest Asia A/S, as well as Seventy Second Investment Company, Ammar, and Phoenix Bear Investments.
The approval marks a milestone for Manipal Health Enterprises as it seeks to strengthen its balance sheet and expand its hospital network. The company operates under the Manipal Hospitals brand and is one of India's leading healthcare providers. The IPO is expected to launch in the coming months, subject to further regulatory and market conditions.
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