In a significant development for India's healthcare sector, Manipal Health Enterprises Ltd, backed by Singapore's sovereign wealth fund Temasek, is preparing to file its draft red herring prospectus (DRHP) with capital markets regulator Sebi in December. The initial public offering (IPO) is expected to be one of the largest in the Indian healthcare space, targeting fundraising of more than $1 billion through a mix of primary and secondary share sales.
Valuation and Investor Interest
The Ranjan Pai-founded hospital chain is aiming for a substantial valuation between ₹1 trillion to ₹1.2 trillion, according to sources familiar with the company's plans. This valuation pitch to investors reflects the significant scale the company has achieved over the past two years through strategic expansions and acquisitions.
The final decision on the filing timeline, fundraising quantum, and potential inclusion of long-term investors will be determined at the company's board meeting scheduled for next week. The IPO is expected to raise approximately ₹8,000-10,000 crore, with the primary capital component being substantially larger than the offer for sale (OFS) portion.
Ownership Structure and Recent Transactions
Temasek currently holds approximately 59% stake in Manipal Health Enterprises after increasing its ownership in April 2023 by acquiring a 41% stake for more than $2 billion. This transaction valued the company at nearly $4.8 billion (approximately ₹40,000 crore) at that time.
The current ownership structure shows Manipal Education and Medical Group retaining around 31%, while global investment firm TPG holds 10-11%. Last year, the company strategically sold up to 8% stake to incoming investors including Mubadala Investment Co., Novo Holdings, and the California Public Employees' Retirement System (CalPERS) to derisk its holdings.
Strategic Expansion and Market Position
Manipal Hospitals had initially planned to file for its IPO by June this year but delayed the process after agreeing to acquire Sahyadri Hospitals from Ontario Teachers' Pension Plan (OTPP) for ₹6,400 crore. This acquisition has been transformative, pushing the chain's total bed count beyond 12,000 and establishing it as one of the largest healthcare operators in Asia.
The company, founded in 2010 by Ranjan Pai, now operates a pan-India network comprising over 38 hospitals and more than 5,000 doctors across major cities including Bengaluru, Mangaluru, Mysuru, Vijayawada, Pune, Kolkata, and Jaipur, among others.
Financial Performance and Sector Context
According to financial data, Manipal Health Enterprises reported consolidated revenues of ₹8,242 crore for the fiscal year ending March 31, 2025, showing significant growth from ₹6,144 crore in the previous year. The company maintained a healthy EBITDA margin of 25.8% in FY25, demonstrating strong operational efficiency.
The Indian healthcare sector has witnessed substantial consolidation in recent years, with major players acquiring or merging to create larger platforms. The recent reverse merger of Quality Care India Ltd with Aster DM Healthcare created the largest listed healthcare provider in India with over 10,150 beds.
When compared to listed peers, Manipal's targeted valuation of ₹1-1.2 trillion positions it competitively against Apollo Hospitals Enterprise (market cap of ₹1.098 trillion) and Max Healthcare (₹1.104 trillion), while significantly larger than Fortis Healthcare (₹77,020 crore).
The IPO will be managed by a consortium of investment banks including Kotak Mahindra Capital, Axis Capital, Jefferies, Goldman Sachs, JPMorgan, and Motilal Oswal. While the company doesn't require immediate capital, the primary raise will strengthen its war chest for potential large acquisitions and help reduce its consolidated debt of approximately ₹5,200 crore as of March 31, 2025.
