Bengaluru: Manipal Hospitals is set to file its draft red herring prospectus (DRHP) this week for an IPO expected to raise about Rs 10,500-11,000 crore, potentially the largest public offering in India’s healthcare sector.
The issue will include an offer-for-sale component of around Rs 2,000 crore, while a large portion of the proceeds will be used to retire about Rs 8,000 crore of debt and fund inorganic expansion opportunities, sources told TOI.
Kotak is the lead banker for the IPO. When reached out to Manipal Hospitals, the management said it has no comments to offer.
With a network of nearly 50 hospitals and around 13,000 beds, Manipal Hospitals has recently surpassed Apollo Hospitals in scale, becoming the country’s largest hospital chain by bed capacity.
The hospital chain recently acquired a 100% stake in Sahyadri Hospitals for about Rs 6,000-Rs 6,400 crore. Three years ago, Temasek Holdings acquired a majority stake in Manipal Health Enterprises for over $2 billion, then the largest deal in India’s healthcare sector, valuing the company at around $5 billion.
The group traces its origins to Udupi, where T M A Pai founded Kasturba Medical College in 1953, laying the foundation for the education hub that later became Manipal. In 1991, Ramdas Pai launched Manipal Hospitals to expand into healthcare. Manipal Hospitals has followed a “string of pearls” acquisition strategy to expand its footprint across India.
The group acquired Columbia Asia Hospitals’ India operations for over Rs 2,000 crore. In 2021, Manipal acquired Vikram Hospital from Multiples Private Equity in a deal valued at around Rs 360 crore.
In 2023, it further expanded by acquiring an 84% stake in AMRI Hospitals in Kolkata for about Rs 2,400 crore, strengthening its presence in eastern India and becoming the largest hospital chain in the region for tertiary and quaternary care. Manipal Hospitals has also signed an agreement to acquire an 87% stake in Medica Synergie.
While the financial details were not disclosed, sources told TOI the deal is estimated to be worth around Rs 1,400 crore. With new greenfield projects in Bengaluru and Mumbai, the group expects its footprint to expand to about 15,000 beds, including a planned 300-500-bed tertiary care hospital in Raipur.
