Temasek-backed Manipal Health files DRHP with SEBI to raise ₹8,000-cr. via IPO

Manipal Health Enterprise Ltd, a Bengaluru-based multi-specialty firm backed by Temasek, Singaporean state-owned investment company, has filed Draft Red Herring Prospectus (DRHP) with SEBI on Tuesday to raise ₹8,000 crore through an IPO.

The IPO, with a face value of ₹2, with fresh issue of ₹8,000 crore and offer-for-sale of upto 43,227,668 equity shares by promoters: Imperius Healthcare Investments, Manipal Education and Medial Group India and existing investors including TPG and Novo Holdings.

The proceeds from the primary raise would mainly go towards debt repayment, with ₹5,378 crore to be utilised for repayment in full or part of certain outstanding borrowings and accrued interest thereon availed by one of the company’s material subsidiaries, Manipal Hospitals Pvt Ltd, ₹574 crore for acquisition of minority stake in the company’s step down subsidiary, Sahyadri Hospitals, while the the remaining funds would be used for general corporate purposes, according to market sources.

The company, in consultation with the book-running lead managers, may consider a pre-IPO Placement for upto ₹1,600 crore.

The offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers while not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders, respectively.