Manipal Hospitals files DRHP for over $1 billion IPO, biggest in sector

Temasek-backed Manipal Hospitals has filed its DRHP for a $1 billion-plus IPO, which could become the largest public issue in India's healthcare sector

Singapore-based investment firm Temasek- and Dr Ranjan Pai-backed Manipal Hospitals has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of over $1 billion, which could be among the largest in India’s health care sector.

 

The issue comprises a fresh issue of ₹8,000 crore and an offer for sale (OFS) of up to 43.2 million equity shares by promoters — Imperius Healthcare Investments and Manipal Education and Medical Group India.

 

According to Bloomberg, the company is targeting a valuation of up to $13 billion.

 

Of the proceeds from the fresh issue, ₹5,378 crore will be used to repay or prepay borrowings, including accrued interest, of its material subsidiary, Manipal Hospitals Pvt Ltd. Another ₹574 crore will be deployed towards acquiring a minority stake in step-down subsidiary Sahyadri Hospitals, with the remainder earmarked for general corporate purposes. 

The health care major may also undertake a pre-IPO placement of up to ₹1,600 crore. If completed, the size of the fresh issue will be reduced accordingly.

 

The offer is being made through the book-building process, with up to 50 per cent of the net offer allocated to qualified institutional buyers, and at least 15 per cent and 35 per cent reserved for non-institutional and retail investors, respectively.

 

Manipal Health Enterprises operates a pan-India network of multispecialty hospitals, offering services ranging from outpatient care to complex tertiary and quaternary treatments. As of September 30, 2025, it operated 38 hospitals (48 on a pro forma basis) with 10,761 licensed beds (12,367 on a pro forma basis) across 14 states and Union territories.

 

According to a Crisil report cited in the DRHP, the company has the widest hospital footprint among private hospital chains in India as of September 2025. It is also the largest pan-Indian multispecialty hospital network by bed capacity and the second-largest hospital chain by number of hospitals.

 

In November 2025, the company commenced operations at its 49th hospital in Bengaluru, taking its licensed bed capacity to 12,631 as of December 31, 2025.

 

Across its key regions — Karnataka; Maharashtra, and Goa; and eastern India (West Bengal, Odisha, Jharkhand and Sikkim) — the company had 6,040, 2,188 and 2,887 licensed beds, respectively, as of September 30, 2025 (on a pro forma basis).

 

Following the acquisition of Sahyadri Hospitals in October 2025, the firm added 1,606 licensed beds. On a pro forma basis, total licensed bed capacity stood at 12,100 as of March 31, 2025, rising to 12,367 by September 30, 2025.

 

The company served 3.94 million patients in the six months ended September 2025 and 7.19 million patients in FY25, supported by over 11,000 doctors.

 

Revenue from operations stood at ₹4,713 crore in the first half of FY26, with net profit at ₹571.8 crore. For FY25, revenue rose to ₹8,242.2 crore from ₹4,839.6 crore in FY23, while net profit increased to ₹1,081.6 crore from ₹414.2 crore.

 

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JP Morgan India, UBS Securities India, and DBS Bank India are the book-running lead managers. KFin Technologies is the registrar. The shares are proposed to be listed on the BSE and NSE.