Manipal Health to meet bankers in Feb for $1 bn IPO

Temasek-backed hospitals chain Manipal Health Enterprises Ltd has sought banker pitches for a likely $1-billion initial public offering (IPO), valuing the Ranjan Pai-founded firm at over $7.5-8 billion, according to two people aware of the development.

- Sneha Shah & Ranjani Raghavan

"The idea is to take the company public over the next 12 months and bankers have been asked to make formal pitches early next month," said one of the persons on the condition of anonymity.

The IPO will likely include a secondary offer for sale (OFS) and a "large" primary capital raise, the person said. The company does not need capital immediately, but it will boost its war chest for a large acquisition through a primary capital raise during the IPO.

The second person quoted above said that the existing shareholders will be diluting their stake as part of the OFS.

"The company will also be looking to raise primary capital," the person added.

Some of the capital is also likely to be used to pare debt.