One of India’s largest hospital networks is preparing for a significant growth push, with Manipal Health Enterprises announcing plans to invest 40 billion rupees — approximately $414.38 million — to expand its patient bed capacity by more than 18% over the coming years.
The announcement was made Friday at a press conference by Dilip Jose, the company’s managing director and CEO, just days before the hospital chain is set to launch its initial public offering next week.
Jose said the Bengaluru-based company intends to add 2,400 beds to its current total of 13,037 within three to four years. Manipal Health currently operates 49 hospitals across India and competes with major players such as Apollo Hospitals Enterprise, Max Healthcare, and Fortis Healthcare.
The company, which is backed by Temasek, is targeting a valuation of as much as $8 billion through its $960.4 million IPO — making it the second-largest primary market offering in India so far this year, trailing only SBI Funds Management’s $1.03 billion issue earlier this month.
As part of the IPO, Manipal Health plans to issue new shares valued at $828.4 million. Existing investors — including Temasek’s unit Imperius Healthcare Investments and TPG Capital — will sell off shares worth $132 million.
Company officials said they expect the proceeds from the IPO to allow the firm to eliminate its net debt entirely.
Anchor investors will have the opportunity to bid on shares by July 28, with the public subscription window running from July 29 through July 31.
(Exchange rate used: $1 = 96.5725 Indian rupees)
