Manipal Health IPO Bids See Subdued Response; Grey Market Suggests Potential Listing Gain as Healthcare Demand Rises

Manipal Health IPO Bids See Subdued Response; Grey Market Suggests Potential Listing Gain as Healthcare Demand Rises​

The initial public offering (IPO) of Manipal Health Enterprises witnessed a measured response on Day 2 of bidding. As of 10:30 am on July 30, the issue stood at 16 percent subscription on the National Stock Exchange (NSE). This multi-specialty healthcare provider offers an opportunity to investors following steady business expansion and a strong operational footprint.

IPO Subscription Details and Market Reception​

The public offer for Manipal Health Enterprises has been set with a price band ranging from Rs 560 to Rs 590 per equity share. The total offering amounts to Rs 9,275 crore. Investor allocation shows that Retail Individual Investors (RIIs) have driven the early demand, subscribing 33 percent of their allotted quota. Non-Institutional Investors (NIIs) followed closely behind, recording a 9 percent subscription in their segment.

Grey Market Sentiment and Estimated Listing Price​

In the unlisted market, sentiment remains relatively quiet. According to Investorgain and IPO Watch data, the grey market premium (GMP) for Manipal Health Enterprises shares stood at Rs 10 per share on the morning of July 30. When calculated against the upper price band of Rs 590, these grey market trends imply an estimated listing price of Rs 600 per share. This suggests a potential listing gain of approximately 1.69 percent.

Investors must note that these grey market premiums are unofficial and speculative, and they do not guarantee actual listing gains or reflect the company’s inherent fundamentals.

Structure of the Book-Built Issue​

This large scale book-built issue comprises two main components. A substantial fresh issue component totals 13.56 crore shares, aggregating to Rs 8,000 crore. Additionally, there is an offer for sale (OFS) comprising 2.16 crore equity shares from the existing promoter group and external investors like TPG and Novo Holdings.

The OFS size was originally planned at 4.32 crore equity shares in the Draft Red Herring Prospectus (DRHP). A retail applicant must bid for a minimum of one lot consisting of 25 equity shares, requiring an initial outlay of Rs 14,750 at the ceiling price. The subscription window is slated to close on July 31, with an intended listing date on both the BSE and NSE set for August 5.

Company Fundamentals and Growth Trajectory​

Manipal Health Enterprises operates a pan-India network, including hospitals, clinics, and diagnostic centers under the prominent Manipal Hospitals chain. As of March 2026, the company managed 49 hospitals with 13,037 licensed beds across 14 states and union territories. The company's financial health reflects steady expansion.

For the fiscal year ended March 31, 2026, Manipal Health recorded an operational revenue of Rs 10,335.75 crore, a marked improvement from Rs 8,242.25 crore in the previous fiscal year. Net profit for FY26 stood at Rs 892.32 crore. The IPO proceeds are intended primarily to repay borrowings of its subsidiary, Manipal Hospitals Private Ltd., acquire a minority stake in Sahyadri Hospitals Private, and meet general corporate purposes.

Expert Opinions on Valuation and Investment Thesis​

Brokerage firms offer varied yet generally supportive views on the issue. Master Capital Services has assigned a favorable outlook, highlighting the company's strategic capabilities and operational footprint. The firm noted that Manipal Health Enterprises is well positioned to benefit from growing healthcare demand through its pan-India network and focus on tertiary and quaternary care.

Anand Rathi provided a detailed assessment, stating that while the IPO appears fully priced at the upper end of the band, it recommends a "Subscribe-Long Term" rating. This brokerage firm calculated the company’s valuation at the upper price band to be 85.4 times FY26 earnings, resulting in a post-issue market capitalization of Rs 77,605.6 crore.