Manipal Health Enterprises Ltd Seeks Pitches for $1-Billion IPO Valued at Over $7.5 Billion
Bengaluru-based Manipal Health Enterprises Ltd, a hospitals chain backed by Temasek, has sought pitches from bankers for its planned $1-billion initial public offering (IPO), which values the company at over $7.5-8 billion.
According to two people aware of the development, the IPO, expected to take place in the next 12 months, will include a secondary offer for sale (OFS) and a "large" primary capital raise. The firm does not need immediate capital but aims to boost its war chest for a large acquisition through a primary capital raise during the IPO.
"The idea is to take the company public over the next 12 months and bankers have been asked to make formal pitches early next month," said one person on condition of anonymity.
Manipal Health, founded by Ranjan Pai in 2010, currently has a pan-India footprint of more than 30 hospitals with 9,500-plus beds and over 5,000 doctors. The company's revenue grew significantly in the first half of FY24 to ₹26.2 billion, with an Ebitda of ₹7.41 billion at the consolidated level.
The impending IPO would make Manipal Health one of the largest IPOs from the healthcare industry in India at this scale. Last year, Aster and Blackstone-backed Quality Care signed an agreement to merge, creating the largest listed healthcare provider in India with more than 10,150 beds.
Temasek acquired a significant stake in Manipal Health in April 2023 for more than $2 billion, valuing it at nearly $4.8 billion or ₹40,000 crore.
If successful, the IPO would mark another significant milestone for Ranjan Pai's empire, which previously saw Temasek sell up to 8% of the company to Mubadala Investment Company (Mubadala), Novo Holdings, and California Public Employees’ Retirement System (CalPERS).
Manipal Education and Medical Group Pvt. Ltd retains around 31% of the company, with TPG owning 10-11%. The upcoming IPO will also see existing shareholders diluting their stake as part of the OFS.
The exact timeline for the IPO remains unclear, but bankers have been asked to make formal pitches early next month.