Managing Director & CEO Dilip Jose said, “We have about 3,000 beds coming on stream through green fields and brownfield expansions, acquisitions would be opportunistic. Over the next three years, the primary focus would be the beds underway to get commissioned, and to also ensure that Sahyadri, which we acquired about nine months ago, fully realises its potential.”
Manipal Health Enterprises’ initial public offering (IPO) will open for subscription on July 29 and close on July 31. The issue is valued at ₹9,275 crore, comprising a fresh issue of ₹8,000 crore and an offer for sale (OFS) of ₹1,275 crore.
While the company has delivered strong revenue growth in recent years through acquisitions, Jose refrained from giving a forward revenue guidance, saying execution and identifying the right opportunities will remain the immediate priorities.
On hospital utilisation, the company said it is not working towards a fixed timeline to raise occupancy from the current 65% to its long-term target of 75-78%. Instead, it plans to increase patient volumes by adding more services and expanding its network. Management believes lower occupancy also reflects shorter patient stays, allowing faster bed turnover.
Manipal Hospitals also expects average revenue per occupied bed (ARPOB) to continue benefiting primarily from treating more complex cases rather than relying on price increases. Historically, ARPOB has grown by around 9-10% annually, with only 3-4% coming from pricing and the balance driven by a richer case mix.
Group CFO Samir Agarwal said the IPO was not driven by the need to finance the Sahyadri acquisition, noting that the listing process had started before the deal and was temporarily paused to complete the acquisition.
Most of the fresh issue proceeds will be used to repay debt, leaving the company with a stronger balance sheet and sufficient cash to fund ongoing expansion and future strategic acquisitions.
Following the primary issue, Manipal expects to become a net debt-zero company, while retaining flexibility to use low-cost borrowing for future growth if required.
For the entire discussion, watch the accompanying video
