New Delhi, July 30 -- A host of domestic and foreign institutional investors including private equity firms and pension funds are betting on a healthcare provider that is set for a major capital event.
Abu Dhabi-based Lunate, a $115 billion asset manager that counts sovereign unit ADQ as an anchor investor, along with other institutional investors such as sector-focussed private equity firm Orbimed and homegrown PE firm Creaegis, has picked up a small stake in hospital operator Manipal Health Enterprises Ltd.
The operator of Manipal Hospitals, which filed its red herring prospectus (RHP) last week and set a price band ahead of the planned initial public offering (IPO), has raised Rs 4,167 crore (around $435.5 million) from the anchor investors, according to a disclosure.
Manipal Health is looking to raise Rs 8,000 crore (around $836 million) in a fresh issue from the IPO, while its offer-for-sale (OFS) has been reduced to around 21.61 million shares from the 43.23 million shares proposed in its draft red herring prospectus (DRHP) filed in March.
According to a disclosure, billionaire Azim Premji's family office Premji Invest put in Rs 109.7 crore and Abu Dhabi's Lunate Capital invested around Rs 160 crore.
Meanwhile, healthcare-focussed private equity firm Orbimed invested around Rs 15 crore and homegrown PE firm Creaegis invested Rs 5 crore via their public markets funds.
Other notable investors included pension funds such as Canada's Public Sector Pension Investment Board (PSP Investments) and sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA).
In the IPO, Singapore's sovereign wealth fund Temasek, along with US private equity firm TPG, two other sovereign wealth funds, a US-based pension fund, a Danish investment firm and the Manipal Group, will pare their stakes.
Last week, Manipal Health set the price band at Rs 560-590 per share. The IPO size now is Rs 9,275 crore (about $960 million). At the upper end of the price band, it is eyeing a post-listing market capitalisation of Rs 77,606 crore ($8.04 billion), VCCircle reported.
The company plans to use Rs 5,552 crore from the fresh issuance to repay debt, Rs 574 crore to buy a minority stake in step-down subsidiary Sahyadri Hospitals Pvt Ltd, and the balance for general corporate purposes. It also plans to add 3,000 licenced beds in the next four-five years.
Published by HT Digital Content Services with permission from VC Circle.