Manipal Health Enterprises Ltd, the Temasek-backed hospital chain, has said it is looking to expand its presence through acquisitions in Kerala, Hyderabad and the National Capital Region (NCR) as it prepares to launch its INR 9,275 crore initial public offering (IPO). 
The Bengaluru-based healthcare provider currently operates 49 hospitals with around 13,000 beds across 24 cities. The company has announced a price band of INR 560-590 per equity share for its IPO, which is scheduled to open on July 29. The public issue comprises a fresh issue of equity shares worth up to INR 8,000 crore and an Offer for Sale (OFS) of up to 2.16 crore equity shares by existing shareholders. 
Manipal Health Enterprises Managing Director and Chief Executive Officer Dilip Jose said the company expects the IPO to value the business at around INR 78,000 crore at the upper end of the price band. He said the primary objective of raising fresh capital is to reduce the company's debt burden. 
According to Jose, the company currently has gross debt of around INR 10,000 crore and cash reserves of about INR 2,500 crore, resulting in a net debt of nearly INR 7,500 crore. He said a substantial portion of this debt arose from the acquisition of Sahyadri Hospitals, which was financed through borrowings. He added that the IPO proceeds would largely be utilised for early repayment or prepayment of these loans. 
As per the company's IPO plans, around INR 5,378 crore from the issue proceeds will be used to repay or prepay borrowings of its subsidiary, Manipal Hospitals Pvt Ltd. Another INR 574 crore has been earmarked to acquire the minority stake in step-down subsidiary Sahyadri Hospitals Pvt Ltd, while the remaining funds will be utilised for general corporate purposes. 
The hospital chain also plans to invest around INR 3,560 crore over the next three to four years to expand its healthcare network. The expansion strategy includes a combination of brownfield expansions at existing facilities and greenfield developments, with approximately 3,000 additional beds expected to become operational over the next three years. 
Speaking about future growth plans, Jose said the company is actively evaluating acquisition opportunities in Kerala and Hyderabad. He added that NCR remains another priority market, where Manipal currently operates only three hospitals and sees significant scope to expand its healthcare services and strengthen its regional presence. 
In Maharashtra, the company is continuing to build on its acquisition of Sahyadri Hospitals, which added around 1,300 beds to its network and strengthened its presence in western India, making it the region's largest private healthcare network. Alongside this, the company is developing a greenfield hospital in Mumbai. Jose said construction work is already underway and the facility is expected to be commissioned in about 18 months. 
The company currently records an occupancy level of around 65 per cent across its hospitals. Jose noted that occupancy could increase to nearly 75-78 per cent over time, although he clarified that achieving a specific occupancy level is not the company's immediate focus. 
He also pointed to long-term structural factors supporting the healthcare sector, including India's population of over 1.4 billion, a rising elderly population, and the increasing prevalence of non-communicable diseases over communicable illnesses. He said these trends continue to drive demand for quality healthcare services, while expanding health insurance coverage is helping improve affordability and access to medical treatment. 
Referring to industry estimates, Jose said India's healthcare sector has grown by around 12-15 per cent annually over the past seven years and is expected to maintain a similar growth trajectory. He added that the sector offers significant opportunities for healthcare providers, including Manipal Health, to expand their operations. 
The company also continues to invest in medical technology, information technology infrastructure and physical healthcare facilities to improve patient services. Jose said artificial intelligence is already being deployed across several functions within Manipal Hospitals to support healthcare delivery and operational efficiency. 
Source PTI