The much-awaited Manipal Health IPO is all set to open for bidding today. The hospital chain operator will raise Rs 9,272 crore via the issue and will close for subscription on July 31. The issue, which has fixed its share price band at Rs 560-590, has seen its grey market premium decline over the past few sessions. 

So far, the IPO has been subscribed 0.04 times, with the employee category receiving the maximum subscription at 0.57 times, followed by the retail investor at 0.15 times. The non-institutional investor segment has been subscribed 0.05 times, and the Qualified Institutional Buyers (QIBs) portion has been marginally subscribed.

In case you wish to subscribe to the issue, here are five key factors you should know

#1 Manipal Health IPO: Offer Size and BRLM

The total offer size for the Manipal Health IPO stands at Rs 9,275.22 crore, of which the company will raise fresh equity worth Rs 8,000 crore via the issuance of 13.56 crore shares. The remaining Rs 1,275.22 crore will be raised through the OFS route as shareholders will offload 2.16 crore shares of Rs 2 each. 

The investment bankers for the IPO are Kotak Mahindra Capital, Axis Capital, Goldman Sachs India, Jeffries India, JP Morgan India, UBS Securities India, and DBS Bank India. The registrar to the issue is KFin Technologies. 

#2 Manipal Health IPO: Subscription timeline

The IPO will open for public bidding today, i.e., July 29, remain open for three days, and close on Friday, July 31. Share allotment will be completed by Monday, August 3, and beneficiaries will receive their shares along with the requisite refunds by Tuesday, August 4. 

The company will list on NSE and BSE on August 5. 

#3 Manipal Health IPO: Lot Size and GMP

Retail applicants can bid for a minimum of one lot comprising 25 shares, translating into an investment of Rs 14,750, while the maximum they can bid for is 13 lots. For small high net worth investors, the minimum lot size is 14, and the maximum is 67. While big HNIs need to subscribe to a minimum of 68 lots. 

As per the latest update, the company’s shares were trading in the unlisted markets at a premium of 1.7% or Rs 10 per share, translating into an estimated listing price of Rs 600, based on the upper end of the price band. This implies a gain of Rs 250 on one lot. 

However, readers must note that GMP is an unofficial metric to determine the listing price and fluctuates based on market mood and sentiment.

#4 Manipal Health IPO: Utilisation of proceeds 

The majority of fresh proceeds will be used by Manipal Health to pay off its debt, according to its RHP. Of the total Rs 8,000 crore, the company will deploy capital worth Rs 5,552.7 crore towards the repayment and prepayment of its outstanding borrowings. 

This also includes the accrued interest availed by its subsidiary, Manipal Hospitals Private. The healthcare company will utilise proceeds worth Rs 574 crore for acquiring a minority stake in one of its stepdown subsidiaries, and the remaining amount will be diverted towards general corporate purposes.  

#5 Manipal Health IPO: Expert take 

Giving the IPO a ‘Subscribe-Long Term’ rating, Anand Rathi Research Team in a report said, “At the upper price band company is valuing at PE of 85.4x to its FY26 earnings with market cap of Rs 7,76,056 million post issue of equity shares.”