Manipal Health IPO Day 2: Subscription at 15%, GMP Declines; Investment Insights

The initial public offering (IPO) of Manipal Health Enterprises Ltd, a prominent player in India's healthcare sector, is currently in its second day of bidding, which commenced on July 30 and will conclude on July 31. The IPO, valued at Rs 9,275.22 crore, has set its price range between Rs 560 and Rs 590 per share. As of now, the subscription rate stands at a mere 15%, with only 1,31,45,250 shares bid against the total of 8,66,04,947 shares available. The retail segment has seen a subscription of 0.27 times, while the non-institutional investors (NII) category is at 0.08 times, and qualified institutional buyers (QIB) are at 0.15 times. The shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 5, 2023.

Prior to the public offering, Manipal Health successfully raised Rs 4,167 crore from various anchor investors, which included notable global entities such as Abu Dhabi Investment Authority (ADIA), Allianz Global Investors Fund, and Goldman Sachs Bank Europe, among others. The company has established a minimum application lot size of 25 shares, requiring retail investors to invest at least Rs 14,750 at the upper price point. Market analysts have noted a decline in the grey market premium (GMP) for Manipal Health shares, which fell to approximately Rs 9 per share, down from Rs 10 the previous day. This indicates a potential listing price of around Rs 599 per share, reflecting a modest gain of 1.53%. However, investors are reminded that the grey market is unofficial and subject to fluctuations based on market sentiment.