Manipal Health Enterprises’ $960.4 million initial public offering (IPO) was oversubscribed on the final day of bidding on Friday (July 31), led by institutional investors, while valuation worries kept retail investors cautious.
The IPO, India’s second biggest this year after SBI Funds Management, received bids for 443.07 million shares, at the end of three days of subscription, against 90.09 million shares on offer, according to exchange data.
Qualified institutional buyers bid for 402.16 million shares, 8.25 times the number of shares on offer. The portions set aside for non-institutional investors and retail investors were subscribed 1.02 times and 0.93 times, respectively.
The Temasek-backed firm is India’s largest multispecialty hospital network by bed capacity, operating over 13,000 beds across 49 hospitals.
Its listed peers include Apollo Hospitals Enterprise, Max Healthcare and Fortis Healthcare.
Manipal Health is valued at 84.65 times its fiscal year 2026 earnings at the upper end of the IPO price band of Rs 560-590, while Apollo, Fortis and Max Healthcare are valued between 66.15x and 74.55x, brokerage Angel One said in a note.
“While (Manipal Health) has a strong pan-India hospital network, leadership in key markets and favourable long-term industry prospects, the rich valuation already factors in much of its growth potential,” Angel One added.
Prasenjit Paul, fund manager at Kolkata-based 129 Wealth, shared a similar view. “Considering the large issue size and valuations that already reflect much of the positive outlook, we are expecting a muted listing,” Paul said.
The stock will likely begin trading from August 5.
Reuters
