Manipal Health Moves A Step Closer To The Markets: DRHP Filed With SEBI

Manipal Health Enterprises has taken its first formal step towards the IPO. The company has filed its draft red herring prospectus with SEBI on 23 March 2026 and is aiming to raise ₹8,000 crore through a fresh issue. The total issue size and the dates of the IPO are yet to be finalised.

With a network of this size now approaching the public markets, the structure of the issue and the usage of funds will be closely tracked.

How Is The IPO Structured And Where Will The Funds Go?

At the centre of the IPO is a fresh issue of ₹8,000 crore. Since the price band has not yet been set, the final number of shares will be determined through the book-building process. In addition, the issue includes an offer for sale of 43,227,668 equity shares by existing shareholders.

While the fresh issue will bring capital into the business, proceeds from the offer for sale will accrue to the selling shareholders.

In terms of utilisation, a substantial portion of the fresh issue has been earmarked for debt repayment. Around ₹5,378 crore will be used towards the repayment or prepayment of borrowings of its subsidiary, Manipal Hospitals Private Limited.

A further ₹574 crore is proposed to be deployed towards the acquisition of a minority stake in Sahyadri Hospitals. The balance will be used for general corporate purposes.

Taken together, the plan leans clearly towards reducing debt first, while continuing to expand where needed.

What Is Manipal Health’s Scale And Financial Profile?

Manipal Health was established in 1991 and today runs the Manipal Hospitals network.

With 49 hospitals across 24 cities, the company has a presence across both metro and non-metro markets. The network comprises over 12,600 beds and is supported by more than 11,000 doctors, covering 60+ specialities. Patient volumes are also substantial. The hospitals together touch over 7 million lives annually, including international patients.

Among its investors are Temasek Holdings (Private) Limited, TPG SG Magazine Pte. Ltd., and Novo Holdings Invest Asia A/S. The hospital’s offerings cover everything from diagnostics and outpatient care to more specialised treatments.

Financially, the direction has been consistent. Revenue rose by about 28% in FY24 and 34% in FY25. Profit growth was at 27% in FY24, followed by over 100% in FY25, with a sharper jump in earnings in the latest year.

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What Should Investors Look Out For?

While the demand for healthcare in general tends to be steady, the performance of each healthcare chain still comes down to execution and cost control.

Speaking of Manipal’s strengths, the company has its presence across multiple regions, covering both large cities and smaller markets. Its focus on specialised treatments supports revenue quality, while its ability to integrate acquired hospitals has played a role in its expansion over the years. An established brand and experienced management further support its operating model.

There are also a few associated risks while considering Manipal’s IPO. The brand is subject to a high degree of regional concentration, since a significant portion of its revenue comes from Karnataka. Also, the company’s results are closely tied to patient volumes and occupancy levels. If demand softens or new hospitals take time to scale up, it can start to show in performance. Besides that, a large share of inpatient revenue also comes from a few key specialities, which means shifts in demand in these areas could have an impact.

As with most healthcare providers, regulatory, legal, and execution-related risks also remain part of the operating landscape.

Manipal Health’s IPO comes at a time when players like Apollo Hospitals, Max Healthcare, Fortis Healthcare, and Narayana Health are already listed.

Where it fits will depend on how growth sustains and whether margins hold at current levels. For investors, the key will be occupancy trends, profitability, and how the issue is priced against these peers.

Sources:

MoneyControl

Economic Times

Manipal Health DRHP