Manipal Health Enterprises IPO Day 2: GMP Steady at 2% as Subscription Hits 15%—Is It Time to Subscribe or Skip?

Manipal Health Enterprises began its Rs 9,275-crore IPO with Day 2 of bidding exhibiting a subdued response from investors. The issue has received a total subscription of 15%, with bids for 15% of the 9 crore shares offered. The retail segment showed a relatively better appetite, subscribing at 25% against the reserved 1.64 crore shares. Notably, well-known investors such as Temasek and healthcare entrepreneur Ranjan Pai are backing this IPO, although cautious participation has raised questions about its value proposition for investors.

As of today, the grey market premium (GMP) for the Manipal Health IPO stands at around Rs 9, suggesting a potential listing price of Rs 599, which is approximately 2% above the upper price band of Rs 590. This modest GMP reflects cautious optimism among investors, though it’s essential to note that the grey market operates unofficially and may not accurately predict the stock’s performance on listing day. The subscription status varies across categories, with Retail Individual Investors (RIIs) at 25%, Non-Institutional Investors (NIIs) at just 5%, and Qualified Institutional Buyers (QIBs) at 14%—indicative of a cautious approach overall.

The capital raised from the IPO is intended for important uses, including repaying debt and strengthening the company’s balance sheet, with Rs 5,378 crore allocated for this purpose. Brokerages are divided in their recommendations; while some, like SBI Securities and Anand Rathi Research, advocate a ‘Subscribe’ for long-term growth, others such as Arihant Capital suggest a ‘Neutral’ stance, citing that the potential growth is already priced in. For Indian investors, this IPO represents both an opportunity in a growing healthcare market and a need for cautious evaluation given the current subscription trends and the valuation premium.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)