Manipal Health Enterprises will use nearly 77% of its Rs 8,000 crore fresh issue to settle the bill for its acquisition spree, turning one of India’s biggest healthcare IPOs into a balance-sheet repair exercise after debt more than doubled in a year.
The hospital operator plans to deploy Rs 5,552.76 crore to repay or prepay borrowings and accrued interest at subsidiary Manipal Hospitals Private Limited, according to the red herring prospectus. Another Rs 574 crore will finance the acquisition of an additional minority stake in Sahyadri Hospitals. Together, the two acquisition-linked commitments will consume Rs 6,126.76 crore of the fresh issue.
