Summary of this article
Manipal Health shares debuted with a marginal listing premium.
The Rs 9,275 crore issue was oversubscribed 4.92 times.
IPO funds will repay debt and acquire subsidiary stakes.
Manipal Health Enterprises shares debuted on the NSE and BSE on August 5 with marginal gains. The stock’s listing price on the NSE was Rs 652 apiece, up 10.5 per cent from the issue price of Rs 590 apiece. On the other hand, the BSE's debut price was Rs 655, up 11.01 per cent compared to the issue price.
Manipal Health Enterprises Listing Day Gain
Applicants who were successfully allotted a minimum of one lot or 25 shares of Manipal Health Enterprises would have gained at least Rs 1,625 (Rs 655 - Rs 590 x 25) once the hospital chain's shares listed on the exchange. The Bengaluru-based company's total market capitalisation stood at Rs 85,762.59 crore. As many as 4.29 lakh shares of the company traded hands after the stock made its debut.
Manipal Health Enterprises IPO: Offer Size
Manipal Health Enterprises IPO was worth Rs 9,275.22 crore. The multispecialty hospital chain's issue consisted of a fresh issuance of 135.6 million shares and an offer for sale of 21.6 million shares. Manipal Health Enterprises IPO price band was fixed at Rs 560- Rs 590 per share.
Manipal Health Enterprises IPO: Subscription
The minimum lot size for application for retail investors was fixed at 1 lot or 25 shares, which aggregated to an investment of Rs 14,750. Manipal Health Enterprises IPO was oversubscribed 4.92 times in its subscription period which started on July 29 and ended on July 31. Investors across categories placed bids for over 443 million shares compared to the net offer size of 90 million shares (determined by deducting the shares allotted to anchor investors from the total offer size).
The hospital chain's non-institutional investors (NII) quota was booked 1.02 times. The Manipal Health Enterprises IPO was booked 93 per cent in the retail individual investor category. The medical services provider's issue was booked 8.25 times in the Qualified Institutional Buyers (QIB) category.
Manipal Health Enterprises: Promoters
Manipal Health Enterprises' promoters held an 81.86 per cent stake in the company before the public issue. The promoters which include Imperius Healthcare Investments., Kabru Investments, Kangto Investments, Manipal Global Health Services, Memg International and Ranjan Ramdas Pai will reduce their stake to 72.08 per cent post-IPO.
Manipal Health Enterprises: Listed Peers
Following its successful market debut, Manipal Health Enterprises will now trade alongside several established peers in the competitive Indian healthcare and multi-specialty hospital sector. The company's prominent listed competitors include industry heavyweights such as Apollo Hospitals Enterprise, Max Healthcare Institute, and Fortis Healthcare. Manipal Health's performance and valuation will be closely tracked and compared against these established players following the listing of the stock.
Manipal Health Enterprises IPO: Objective
Manipal Health Enterprises will use the funds raised via the initial public offering to repay or prepay outstanding borrowings of its subsidiary, Manipal Hospitals, acquire a minority stake in its step-down subsidiary, Sahyadri Hospitals, and for general corporate purposes.
At the time of writing, shares of Manipal Health Enterprises were trading at Rs 652.20 apiece, up by 0.2 per cent on the NSE.
