Manipal Health Enterprises shares to debut on D-Street today; here's what GMP signals

Shares of Manipal Health Enterprises are set to make their stock market debut on the BSE and NSE on Wednesday, August 5, with the grey market indicating a muted listing despite healthy demand for the IPO.

According to market observers, the shares were commanding a grey market premium (GMP) of around ₹2.5 over the issue price, suggesting a largely flat debut. However, the GMP is an unofficial indicator of investor sentiment and may change before listing.

The ₹9,275-crore initial public offering (IPO), which was open for subscription between July 29 and July 31, was subscribed 4.92 times overall.

The qualified institutional buyers (QIB) portion was booked 8.25 times, while the non-institutional investor (NII) category was subscribed 1.02 times. The retail investors' quota remained undersubscribed at 0.93 times.

Mahesh M Ojha of Kantilal Chhaganlal Securities expects Manipal Health's listing to remain muted, with the possibility of a flat-to-discount debut.

Considering the company's rich valuation, subdued operating metrics, limited use of IPO proceeds for growth, and the weak subscription trend, particularly the under-subscription in the retail investor category, Ojha has advised allotted investors to consider booking profits if the stock sees any meaningful listing gains.

He added that fresh investors should wait for one to two quarters for better visibility on earnings growth, operational improvements and a more attractive valuation before considering an entry.

Ahead of the issue opening, the company raised ₹4,167 crore from 133 anchor investors at the upper end of the price band of ₹590 per share.

The IPO comprised a fresh issue of ₹8,000 crore and an offer for sale (OFS) of 2.16 crore shares by existing shareholders. At the upper end of the price band, Manipal Health is valued at around ₹77,607 crore.

Following the issue, the promoters' stake will decline to 61.84% from 69.87%.

The company plans to utilise ₹5,552.7 crore from the fresh issue proceeds to repay debt, primarily borrowings taken for the acquisition of Sahyadri Hospitals. Another ₹574 crore will be used to acquire the remaining 9.84% stake in Sahyadri Hospitals.

As of March 2026, Manipal Health had total borrowings of ₹11,185 crore. The proposed repayment is expected to reduce its debt by nearly 47.5%.

Manipal Health is India's largest private hospital chain by licensed bed capacity, operating 49 hospitals with 13,037 licensed beds across 14 states and Union Territories as of March 31, 2026. It is also the country's second-largest private hospital network by the number of hospitals and the second-largest by revenue.

The company has a market-leading presence among private hospital operators in Bengaluru, Kolkata and Pune, making it the only hospital chain with leadership positions across all three cities. Over the years, it has expanded through acquisitions, including Columbia Asia, AMRI Hospitals, Medica Synergie, Sahyadri Hospitals and a standalone hospital in Bengaluru.

For FY26, the company reported a 26% year-on-year rise in total income to ₹10,520.5 crore. EBITDA increased to ₹2,795.9 crore from ₹2,247.1 crore a year ago, while net profit declined to ₹916.5 crore from ₹1,081.7 crore.

Kotak Mahindra Capital is the book-running lead manager to the issue, while KFin Technologies is the registrar.

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