Manipal Health IPO Closes with Low Subscription, GMP at 1%: Should Investors Apply?

The initial public offering (IPO) of Manipal Health Enterprises Ltd, a prominent player in India's healthcare sector, is set to conclude today, July 31. The IPO, which has a substantial size of Rs 9,275.22 crore, has established a price range between Rs 560 and Rs 590 per share. As the final day of bidding approaches, the subscription levels have been notably low, with the IPO recording a mere 47% subscription by the end of the second day. Specifically, bids for 4,06,36,125 shares were received against the 8,66,04,947 shares available for purchase. The retail segment has seen a subscription rate of 0.48x, while the non-institutional investor category stands at 0.15x, and qualified institutional buyers (QIBs) have achieved a subscription of 0.62x on Day 2. The shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 5, marking a significant milestone for the company.

Prior to the public offering, Manipal Health successfully raised Rs 4,167 crore from various anchor investors, which included notable global entities such as the Abu Dhabi Investment Authority (ADIA), Allianz Global Investors Fund, and Goldman Sachs Bank Europe. This anchor book has attracted a diverse range of institutional investors, including several mutual funds like ICICI Prudential, Kotak, and UTI. The pricing structure of the IPO allows retail investors to acquire shares in lots of 25, necessitating a minimum investment of Rs 14,750 at the upper price point. Market analysts have reported that the unlisted shares of Manipal Health were trading at a grey market premium (GMP) of approximately Rs 6 per share, a slight decrease from Rs 9 the previous day. This suggests a potential listing price of around Rs 596 per share, indicating a modest gain of 1.02%. However, investors are cautioned that the grey market operates unofficially, and premiums can fluctuate based on market sentiment.