Manipal Hospitals Fast-Tracks IPO Plan After Buying Sahyadri, Eyes Higher Valuation

Dr Ranjan Pai-led Manipal Hospitals has reportedly accelerated its plan to list on stock exchanges after acquiring Pune-based rival Sahyadri Hospitals. The company, majority owned by Singapore’s sovereign wealth fund Temasek, became India’s largest hospital chain by bed capacity with this acquisition.

According to a Moneycontrol report, Manipal has asked investment banks to submit a revised valuation for its initial public offering (IPO). The IPO was first planned last year but was delayed as the company bid for the Maharashtra-based hospital chain.

In July, Manipal announced the acquisition of Sahyadri Hospitals from the Ontario Teachers’ Pension Plan (OTPP) in a deal reportedly worth over ₹6,000 crore. With this, Manipal’s capacity rose to about 12,000 beds, well above its largest listed rival, Apollo Hospitals, which has 10,187 beds.

The report adds that Manipal Hospitals is now preparing to fast-track its IPO after securing CCI approval for the Sahyadri acquisition. The Bengaluru-based chain has engaged leading investment banks, including Kotak Mahindra Capital, Axis Capital, Jefferies, Goldman Sachs, JP Morgan and Motilal Oswal.

While a final valuation is yet to be determined, the IPO could target over ₹1 lakh crore ($11.3 billion), qualifying under Sebi’s newly relaxed norms for large issuers. The listing, expected by mid-2026, is likely to attract strong investor interest, putting Manipal in direct competition with Apollo, Max and Fortis.

Since 2021, Manipal has pursued an aggressive acquisition strategy. Prior to Sahyadri, it acquired Vikram Hospitals, Columbia Asia’s India operations, and Emami Group’s AMRI Hospitals.

In April 2023, Temasek made the largest-ever private equity investment in the Indian healthcare sector by raising its stake to become Manipal’s controlling shareholder. The transaction, valued at around ₹16,000 crore, placed Manipal’s worth at ₹40,000–42,000 crore. Following the Sahyadri acquisition, Business Standard reported that the group’s valuation had surged to $13 billion (over ₹1.1 lakh crore).

Last week, Sebi introduced revised norms for large issuers after its board meeting. It noted that steep mandatory stake dilutions through IPOs could overwhelm the market, discourage listings, and create an overhang from further equity sales required to meet minimum public shareholding (MPS) norms.

Under the revised rules, large issuers will be allowed to list with a lower initial public float and given more time to gradually meet the 25% MPS requirement. Sebi added that even with reduced dilution, IPOs of this scale would still ensure adequate retail participation and liquidity.

The amended framework sets different minimum public offer and dilution thresholds for issuers with post-issue market capitalisations of ₹50,000 crore to ₹1 lakh crore, ₹1–5 lakh crore, and above ₹5 lakh crore.