The company used a portion of the proceeds from its Initial Public Offering (IPO) for the redemption, in line with the objects outlined in its prospectus dated July 31, 2026. The redemption included the outstanding NCD principal, accrued interest and applicable prepayment or early redemption costs.
IPO proceeds put towards debt repayment
The repayment forms part of Manipal Health’s post-listing financial strategy and is aimed at reducing its debt and interest burden, the company said.Commenting on the redemption, Sameer Agarwal, Chief Financial Officer, Manipal Health Enterprises, said, “By deploying the IPO proceeds towards debt repayment as planned, we are strengthening our balance sheet, reducing our interest burden and creating greater financial headroom to support our growth plans.”
He added, “This gives us greater flexibility to continue investing in capacity, technology and talent while remaining focused on delivering quality and affordable healthcare.”
The company said the debt reduction is expected to provide greater financial flexibility for expansion and investment, while supporting its focus on profitable growth and operational efficiency.
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Manipal Hospitals has a network of 50 multispecialty hospitals with more than 13,000 licensed beds across 14 states and union territories, according to the company. The network is supported by more than 11,000 doctors and 25,000 employees and serves over 7 million patients annually.
In Q1 FY27, Manipal Health Enterprises reported a 7.7% year-on-year decline in net profit to ₹231 crore, compared with ₹250 crore in the corresponding quarter last year. Revenue, however, rose 38.1% year-on-year to ₹3,091 crore from ₹2,238 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25.6% to ₹736.5 crore from ₹586.5 crore, while the EBITDA margin narrowed to 23.8% from 26.2% a year earlier.
Shares of Manipal Health Enterprises closed at ₹736.55, up 2.08% from its previous close on the National Stock Exchange.
