Summary:
Manipal Health Enterprises’ ₹960.4 million IPO was oversubscribed, driven primarily by strong demand from institutional investors, while retail participation remained subdued due to valuation concerns. The country’s second-largest IPO this year received bids for 443.07 million shares against 90.09 million shares on offer, with qualified institutional buyers subscribing 8.25 times their quota. Analysts noted that the hospital chain’s premium valuation already reflects much of its future growth potential, leading to expectations of a modest stock market debut when the shares are listed on August 5.
Manipal Health Enterprises’ ₹960.4 million initial public offering (IPO) attracted subscriptions exceeding the shares on offer by the close of bidding on Friday, driven largely by strong participation from institutional investors, while retail interest remained relatively subdued amid concerns over the company’s valuation.
The IPO, the second-largest in India this year after SBI Funds Management, received bids for 443.07 million shares over the three-day subscription period, compared with 90.09 million shares available for sale, according to stock exchange data.
Qualified institutional buyers (QIBs) subscribed to 402.16 million shares, representing 8.25 times their allocated quota. Meanwhile, the non-institutional investor category was subscribed 1.02 times, whereas the retail portion saw subscriptions of 0.93 times.
Backed by Temasek, Manipal Health is India’s largest multi-specialty hospital chain by bed capacity, operating more than 13,000 beds across 49 hospitals nationwide.
The company competes with listed healthcare providers such as Apollo Hospitals Enterprise, Max Healthcare, and Fortis Healthcare.
According to brokerage firm Angel One, Manipal Health is valued at 84.65 times its projected FY2026 earnings at the upper end of its IPO price band of ₹560–590 per share. In comparison, Apollo Hospitals, Fortis Healthcare, and Max Healthcare are currently valued between 66.15 and 74.55 times earnings.
Angel One noted that although Manipal Health benefits from a strong nationwide hospital network, leadership in several key markets, and favourable long-term industry prospects, its premium valuation appears to have already priced in much of its anticipated future growth.
Prasenjit Paul, Fund Manager at Kolkata-based 129 Wealth, echoed this assessment, saying the large issue size and valuation leave limited room for upside, which could result in a modest stock market debut.
The company’s shares are expected to be listed on the stock exchanges on August 5.
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