Manipal Health IPO: How an acquisition spree will consume most of its Rs 8,000 crore fresh issue

Manipal Health Enterprises' Rs 9,275 crore IPO (priced at Rs 560-590, opens July 29) will deploy about Rs 6,127 crore of its Rs 8,000 crore fresh issue toward repaying acquisition borrowings and buying an additional 9.84 percent stake in Sahyadri Hospitals. The IPO is effectively refinancing a debt-funded expansion; consolidated borrowings more than doubled to Rs 11,185 crore, net debt rose to 3.74 times adjusted Ebitda from 2 times, and FY26 profit fell 15.3 percent to Rs 916.52 crore despite revenue growing 25.4 percent to Rs 10,336 crore, as finance costs surged 69 percent.