Temasek-backed Manipal Health Enterprises is likely to launch its initial public offering (IPO) early next week, according to people familiar with the matter, bringing one of India's biggest healthcare listings a step closer.
The IPO will comprise a fresh issue of shares worth around Rs 8,000 crore, along with an offer for sale (OFS) of 20-25 million equity shares by existing shareholders. The total issue size is expected to be close to $1 billion, although the final size could change depending on market conditions and investor demand.
Among the selling shareholders, Temasek is expected to offload the largest stake through the OFS. The Manipal Group and private equity firm TPG are also likely to pare their holdings. Other shareholders expected to participate include Seventy Second Investment, Novo Holdings and Phoenix Bear Investments, the people said.
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According to the sources, proceeds from the fresh issue will primarily be used to repay outstanding borrowings and fund the acquisition of the minority stake in subsidiary Sahyadri Hospitals, strengthening Manipal Health's balance sheet while increasing its ownership in the hospital chain.
Manipal Health declined to comment on the proposed listing.
The development comes days after NDTV Profit first reported that the hospital operator had received the Securities and Exchange Board of India's (SEBI) approval for the public issue. As reported on July 6, the company was targeting a market debut by the end of July, with regulatory approval expected ahead of filing an updated draft red herring prospectus (DRHP).
Manipal Health is among India's largest private hospital operators and its IPO is expected to rank among the country's biggest healthcare listings in recent years.
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