Temasek-backed Manipal Health Enterprises is preparing for its next growth phase with plans to add nearly 3,000 hospital beds over the next four to five years while sharply reducing its debt through its upcoming ₹9,275-crore initial public offering (IPO). The company has fixed the IPO price band at ₹560-590 per share, with the issue opening on July 29.
The expansion will be supported by a mix of greenfield and brownfield projects, backed largely by internal accruals. Around 2,400-2,500 beds are already under development, including projects in Mumbai and Raipur, while the company is also evaluating opportunities in Kerala, Hyderabad and the National Capital Region (NCR).
“As we look ahead, three factors will drive our growth — increasing occupancy from the current 65%, adding new bed capacity and unlocking the full potential of Sahyadri Hospitals,” said Dilip Jose, Managing Director and Chief Executive Officer, Manipal Hospitals.
Improving utilisation across its existing hospitals remains another key priority. With occupancy currently at about 65%, the company sees significant scope to boost operational performance before adding further capacity.
Over the past five years, Manipal has expanded its footprint by acquiring hospital networks such as Columbia Asia, Vikram Hospital, Medica and Sahyadri Hospitals. The company says its strength lies in integrating acquired hospitals into a common clinical, operational and technology framework.
“What differentiates Manipal is not only our ability to acquire hospital assets but also to integrate them into one clinical standard, one operating standard, one management process and one IT platform,” Jose said.
Manipal has integrated 31 hospitals during this period using a phased approach that begins with aligning teams and organisational culture before standardising clinical practices, operations and branding.
“We first integrate people and culture, followed by clinical programmes and operating processes. The final step is transitioning the hospitals to the Manipal brand,” said Karthik Rajagopal, Chief Operating Officer, Manipal Hospitals.
Rajagopal said Sahyadri Hospitals is expected to complete its integration within about 10 months. He added that two recently launched hospitals in Bengaluru achieved break-even within two and five months, reflecting the benefits of expanding in established markets.
“The quick break-even was driven by careful selection of micro-markets, a strong brand and operational rigour,” he said.
Strengthening the balance sheet is another major objective of the IPO. Around ₹6,500 crore from the issue will be used to repay acquisition-related debt, including borrowings linked to the Sahyadri acquisition.
“With this IPO, we practically become a net debt-zero company,” said Samir Agarwal, Chief Financial Officer, Manipal Hospitals.
Jose also highlighted growing demand for organised healthcare services beyond major cities, driven by rising incomes and greater health awareness.
“The non-metros are a key demand area. We are very well placed to tap into that opportunity. Manipal would continue to operate as a professionally managed company after listing,” he said. “This is a board-run, professionally managed enterprise. It is not a promoter-run company.”
The IPO comprises a fresh issue of ₹8,000 crore and an offer for sale of up to 2.16 crore equity shares. The company plans to use ₹5,552.8 crore from the fresh issue to repay debt at Manipal Hospitals Pvt. Ltd., while ₹574 crore will fund the acquisition of the remaining minority stake in Sahyadri Hospitals. The remaining proceeds will be used for general corporate purposes.
As of March 31, 2026, Manipal Health operated 49 hospitals with 13,037 licensed beds across 14 states and Union Territories. During FY26, the company reported revenue of ₹10,335.8 crore and a net profit of ₹916.5 crore.
With a stronger balance sheet, an expanding hospital network and a pipeline of new projects, Manipal Health is positioning itself for sustained growth. The upcoming IPO is expected to support its long-term expansion strategy while strengthening its presence across India’s healthcare sector.
(Photo credit: www.manipalhospitals.com)