Manipal Health Enterprises Ltd, one of the major healthcare and hospital chains in India, could be the first to raise capital in the public market for the first time. At Rs 9,275.22 crore, the mainboard public issue will be closed for investor subscription through tomorrow. The company has set a price band of Rs 560 to Rs 590 per equity share for this eagerly awaited public issue.
The public issue received 0.15 times subscription on the first day of bidding. Total bids at 13,145,250 shares against 86,604,947 shares were received. A breakdown of the initial demand shows that retail investors received 0.27 times and non-institutional investors 0.08 times while institutional investors got 0.15 times. The successful equity shares of Manipal Health Enterprises are due to be officially launched and listed on the Bombay Stock Exchange and National Stock Exchange after the bidding is closed.
Before opening their doors to public retail and institutional investors, the hospital chain attracted Rs 4,167 crore through its anchor investor round. The anchor allocated to them was supported by world financial institutions and funds such as the Abu Dhabi Investment Authority, Allianz Global Investors Fund, Morgan Stanley Asia, Natixis International Fund, Societe Generale, and Goldman Sachs Bank Europe. Local mutual fund giants such as ICICI Prudential Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, UTI Mutual Fund, and HSBC Mutual Fund also participated in the anchor book.
Price band, Lot size, and Grey market sentiment. For retail participants looking to apply, the price bracket will be Rs 560–590 per share and the market lot size of 25 shares. Retail investors will have to invest Rs 14,750 in the price band.
In the unofficial grey market, unlisted shares of the company have been at a relatively small grey market premium of around Rs 9 per share, down from Rs 10 the day before which was the highest value. If we take the upper price ceiling of Rs 590, the current grey market trend points to a listing price of around Rs 599 per share, which would translate into a tiny listing gain of around 1.53 percent. Market analysts constantly remind participants that the grey market is purely unofficial and very fluid.
Brokerage Views and Long-term outlook. Most market brokerages remain optimistic about the long-term prospects of Manipal Health Enterprises with a healthy market share, large reach, spread of the company in India, and strong infrastructure expansion plans ahead of time. Anand Rathi has given a positive 'Subscribe-Long Term' recommendation for the public issue with a favorable 'Subscribe – Long term' rating. In their review, Anand Rathi writes that the company is India’s largest multispecialty hospital network by bed capacity and is a leader in the big cities of Bengaluru, Kolkata, and Pune, and has a range of top tier two and tier three hospitals in India.
Master Capital Services, too, said that the company would be well positioned to benefit from structural tailwinds in India's expanding healthcare environment. In the current period of high elective surgeries, preventive healthcare, and outpatient services demand, the healthcare sector is experiencing strong compound annual growth. Thanks to strategic acquisitions, increased inpatient volumes, and plans to build up institutional bed capacity, financial experts view the public offering as a significant long-term investment opportunity for patient capital.
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