India's Manipal Health Enterprises plans to spend 40 billion rupees ($414.38 million) to increase its bed capacity by over 18% in the next few years, a company executive said on Friday, ahead of the launch of the hospital chain operator's IPO next week.
The Temasek-backed company, one of India's largest hospital chain operators, plans to add 2,400 beds to its existing 13,037 capacity within three to four years, Dilip Jose, managing director and CEO at Manipal Health Enterprises, said in a press conference.
The Bengaluru-based chain operates 49 hospitals across India and competes with the likes of Apollo Hospitals Enterprise , Max Healthcare, and Fortis Healthcare.
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The company is also targeting a valuation of up to $8 billion for its $960.4 million IPO, India's second-largest primary market offering this year after SBI Funds Management's $1.03 billion issue earlier this month.
Manipal Health plans to issue new shares worth $828.4 million in the IPO. Existing investors including Temasek'sunit Imperius Healthcare Investments and TPG Capital will offload shares worth $132 million.
The hospital chain operator said it expects to turn net debt-free with the help of the IPO proceeds.
Anchor investors can bid for Manipal Health's shares by July 28. Public subscription will be open from July 29 to July 31.
($1 = 96.5725 Indian rupees)
