India’s largest hospital chain by bed capacity, Manipal Hospitals, is gearing up to enter the capital markets with a massive public issue. The company is expected to file its draft red herring prospectus (DRHP) this week, aiming to raise around ₹10,500–₹11,000 crore—potentially the biggest IPO in India’s healthcare space so far.
The offering will include an offer-for-sale (OFS) component of nearly ₹2,000 crore. A significant share of the funds is likely to go toward reducing debt—estimated at about ₹8,000 crore—while also supporting future acquisitions and expansion plans.
Kotak Mahindra Bank is acting as the lead banker for the issue. The company has declined to comment on the development.
Over the years, Manipal Hospitals has rapidly scaled up its presence and now operates close to 50 hospitals with around 13,000 beds, overtaking Apollo Hospitals in terms of capacity.
Its growth has largely been driven by acquisitions. Recently, it bought a 100% stake in Sahyadri Hospitals for approximately ₹6,000–₹6,400 crore. Earlier, Temasek Holdings acquired a majority stake in its parent company for over $2 billion, valuing the business at about $5 billion at the time.
The group’s roots trace back to Udupi, where T. M. A. Pai established Kasturba Medical College in 1953. The healthcare arm was later launched in 1991 by Ramdas Pai.
Following a “string of pearls” strategy, the group has expanded nationwide through multiple deals. It acquired the India operations of Columbia Asia Hospitals for over ₹2,000 crore, followed by the purchase of Vikram Hospital in 2021.
In eastern India, Manipal strengthened its footprint by acquiring an 84% stake in AMRI Hospitals in 2023 for around ₹2,400 crore. It has also signed an agreement to buy an 87% stake in Medica Synergie, with the deal estimated at about ₹1,400 crore.
Looking ahead, the company is investing in new greenfield projects in Bengaluru and Mumbai, along with plans for a 300–500 bed tertiary care hospital in Raipur. These expansions are expected to take its total capacity to nearly 15,000 beds in the coming years.
(Photo courtesy: manipalhospitals.com)