Manipal Health Enterprises raises Rs 4,167 crore from anchor investors ahead of Rs 9,275-crore IPO
- Manipal Health Enterprises raised Rs 4,167 crore from anchor investors before its IPO.
- The IPO totals Rs 9,275 crore and opens for public subscription on July 29.
- Minority shareholders have raised complaints, but the company has denied the allegations.
Anchor book closes successfully
Manipal Health Enterprises, the parent company of Manipal Hospitals, has raised Rs 4,167 crore from anchor investors. The allocation was completed on July 27, a day before the company's initial public offering (IPO) opens for public subscription.
The IPO is set to open on July 29 and will close on July 31. The total issue size is Rs 9,275 crore, making it one of the largest healthcare IPOs in India this year.
IPO details and price band
The company has fixed a price band for the IPO. Retail investors can bid in lots, with the minimum investment set at a specified amount. The grey market premium (GMP) has been fluctuating, reflecting investor sentiment.
Brokerages have given mixed reviews on the subscription. Some recommend subscribing for long-term gains, citing the company's strong presence in the healthcare sector. Others advise caution due to the high valuation.
Minority shareholder complaints surface
Just ahead of the IPO, some minority shareholders have raised complaints against Manipal Health Enterprises. The nature of the complaints has not been fully detailed, but sources indicate they relate to corporate governance issues.
The company has issued a denial, stating that the allegations are baseless. Officials have not yet confirmed whether any regulatory action has been initiated. The development has not impacted the anchor book allocation.
What brokerages say
Analysts at leading brokerages have published notes on the IPO. Some highlight the company's robust hospital network and revenue growth as positives. Others point to the competitive landscape and regulatory risks.
Most brokerages suggest that investors with a high-risk appetite may consider subscribing. The strong anchor book is seen as a vote of confidence from institutional investors.
The IPO proceeds will be used for expansion and debt reduction. The company plans to add more beds and upgrade existing facilities across its network.
Market observers are watching the subscription numbers closely. The response from retail investors will determine the overall success of the issue.
The anchor book raising of Rs 4,167 crore indicates strong institutional interest. However, the minority shareholder complaints could weigh on sentiment in the coming days.