Manipal Health soars 10.5% in India trading debut after IPO

The hospital operator raised 92.75 billion rupees, or about $973 million, in India's second-largest IPO this year, with institutional buyers driving demand and proceeds earmarked mainly for debt reduction.

Summary

Manipal Health Enterprises shares rose as much as 11% and opened 10.5% above their offer price in Mumbai on Wednesday, valuing India's largest multispecialty hospital network by bed capacity at about 857.63 billion rupees after the country's second-biggest IPO this year. The company raised 92.75 billion rupees, or about $973 million, through a fresh issue and an offer for sale priced at 590 rupees a share, with the deal subscribed 4.92 times overall as qualified institutional buyers bid 8.25 times their allocation. Proceeds from the fresh issue are slated mainly for debt repayment and the purchase of a minority stake in step-down subsidiary Sahyadri Hospitals, while Manipal plans to add 2,400 beds over the next three to four years. The debut outpaced a muted grey-market premium and comes as India's IPO market shows signs of reviving amid renewed investor interest in healthcare.

Terms & Concepts
  • IPO: An initial public offering, when a company sells shares to public investors for the first time.
  • Offer for sale: A portion of an IPO in which existing shareholders sell their shares rather than the company issuing new ones.
  • Grey-market premium: An unofficial price indication for IPO shares before they start trading on an exchange.