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Manipal Hospitals seeks lower IPO valuation as markets stay cautious
The offering targets a valuation of about ₹80,000 crore and plans to raise up to ₹11,000 crore, with proceeds aimed at repaying debt and funding capex.
Manipal Health Enterprises Ltd., the operator of Manipal Hospitals, is seeking a lower valuation for its planned IPO, according to people familiar with the matter cited by LiveMint Markets.
The company is targeting about ₹80,000 crore, below the $10 billion to $12 billion valuation range floated earlier in April. The shift reflects cautious investor sentiment for large public listings as tensions in the Middle East have added turbulence to global financial markets.
The IPO, which is likely to be launched in the week starting 27 July, is planned to raise as much as ₹11,000 crore. The deal structure includes a fresh issue of shares worth about ₹8,000 crore and an offer for sale of up to 43.23 million shares by existing shareholders including TPG Inc.
Proceeds from the primary issue are set to be used to repay debt, fund capital expenditure, and support expansion plans, according to the draft prospectus. Manipal Health is working with Kotak Mahindra Capital Co., Axis Capital, and the Indian units of Goldman Sachs, JPMorgan Chase, Jefferies, UBS, and DBS Bank.