Manipal Health IPO fully subscribed as institutional demand outweighs retail caution

Manipal Health Enterprises’ $960.4 million initial public offering was fully subscribed on the final day of bidding on Friday, led by institutional investors, while valuation worries kept retail investors on the sidelines.

The IPO, India’s second biggest this year after SBI Funds Management, received bids for 229 million shares, as of 1:54 p.m. IST, against 90.09 million shares on offer, according to exchange data.

Qualified institutional buyers bid for 211.15 million shares, 4.3 times the number of shares on offer. The portions set aside for non-institutional investors and retail investors were subscribed 29% and 62%, respectively.

The Temasek-backed firm is India’s largest multispecialty hospital network by bed capacity, operating over 13,000 beds across 49 hospitals. Its listed peers include Apollo Hospitals Enterprise, Max Healthcare and Fortis Healthcare.

Manipal Health is valued at 84.65 times its fiscal year 2026 earnings at the upper end of the IPO price band of 560–590 rupees, while Apollo, Fortis and Max Healthcare are valued between 66.15x and 74.55x, brokerage Angel One said in a note.

“While (Manipal Health) has a strong pan-India hospital network, leadership in key markets and favorable long-term industry prospects, the rich valuation already factors in much of its growth potential,” Angel One added.

Prasenjit Paul, fund manager at Kolkata-based 129 Wealth, shared a similar view.

“Considering the large issue size and valuations that already reflect much of the positive outlook, we are expecting a muted listing,” Paul said.