Manipal Health Enterprises made a strong debut on the stock market on Wednesday, listing at a premium of 11% to its IPO price. The stock opened at Rs 652 on the NSE which is a 10.51% rise from the IPO price of Rs 590. On the BSE, it began trading at Rs 655 per share which marks a 11.02% premium.
The IPO which is priced in the range of Rs 590 per share, values the company at more than Rs 77,600 crore at the upper end of the price band.
Manipal Health Enterprises' initial public offering (IPO) was subscribed 4.92 times on the final day of bidding on Friday, reflecting strong demand from institutional investors. According to NSE data, the issue received bids for 44.3 crore shares against 9 crore shares on offer.
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The Qualified Institutional Buyers (QIB) segment was subscribed 8.25 times, while the non-institutional investors' (NII) portion saw 1.02 times subscription. The retail investor category was subscribed 93%.
Ahead of the issue, the Bengaluru-based hospital chain raised Rs 4,167 crore from anchor investors, including Abu Dhabi Investment Authority and Allianz Global Investors Fund.
The public issue comprises a fresh issue of equity shares worth up to Rs 8,000 crore and an offer-for-sale (OFS) of up to 2.16 crore shares by existing shareholders.
Of the proceeds from the fresh issue, Manipal Health plans to use Rs 5,378 crore to repay or prepay borrowings of its subsidiary, Manipal Hospitals Pvt Ltd. Another Rs 574 crore has been earmarked for acquiring the minority stake in step-down subsidiary Sahyadri Hospitals Pvt Ltd, with the balance allocated for general corporate purposes.
Manipal Health operates a nationwide network of multispecialty hospitals, providing services across the healthcare spectrum, from outpatient consultations to tertiary and quaternary care.
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