Manipal Hospitals is gearing up to file for an IPO estimated at ₹8,500-9,000 crore, which will be one of the biggest issues in healthcare in 2026. The company operates the second largest hospital chain in the country. Another southern operator, Kauvery Hospital, is expected to raise over ₹1,500 crore through its planned offering.Asia Healthcare Holdings is preparing to tap the market. Indira IVF refiled its papers in July 2025 through the confidential route for a problem size estimated at around ₹3,500 crore. Among maternity and childcare chains, Bengaluru-based Cloudnine is said to have started its IPO process and is expected to raise over ₹1,000 crore.
Many major groups, IVF platforms are submitting concept papers; Others prepare to get in line
Investment bankers believe that a combination of stronger fundamentals and favorable valuations is driving these companies to go public.
“Hospital chains are showing steady volume growth, improving margins and greater consolidation, giving investors better visibility,” said Shirish Chikalge, who heads the pharmaceutical and healthcare practice at IIFL Capital Investment Bank. “Valuations are encouraging originators to accelerate timing, but underlying business momentum is clearly stronger than in previous cycles.”
Paras Hospitals, which had filed for an issue of over ₹1,000 crore in September 2024, is likely to re-file IPO papers. Hyderabad-based Yashoda Hospital has filed confidentially for a public issue worth around ₹4,000 crore, adding to its already sizeable pipeline. Emails to the hospitals went unanswered. Private equity funds use the public markets for partial exits, but promoters also raise new capital for expansion, new beds and deleveraging. “The OFS-fresh emissions balance varies from company to company, and that is what investors should focus on,” Chikalge said. Offer for Sale (OFS) allows existing shareholders to sell shares.
The Indian healthcare sector remains underpenetrated compared to developed economies and some emerging economies. With major healthcare companies now well capitalized and with significant debt capacity, current valuations present an attractive opportunity to raise growth capital, said Siddharth Iyer, director of Equirus’ Healthcare and Pharma Investment Banking team.
Public markets have always traded at a premium to private markets, given the lower risk resulting from higher liquidity.
However, the current delta between the two is causing many healthcare providers to opt for a public listing, Iyer said. The sector is poised for a boom, fueled by the rapid expansion of healthcare and diagnostic chains in the country’s organized sector. Data shows that India lags behind peers such as Sri Lanka and Malaysia in healthcare expenditure as a percentage of GDP, which stood at 3% in 2023. On other parameters, such as hospital beds per 10,000 population, India has 16, compared to 50 in China, 20 in Malaysia and 23 in Thailand. Opportunities for inclusive healthcare have emerged with the Pradhan Mantri Jan Arogya Yojana (PMJAY), a nationwide health protection program that has covered nearly 110 million families for medical procedures.
Moreover, medical tourism is driving demand in India’s top hospitals. The medical tourism sector is expected to more than double next year, from $6 billion five years ago. On average, the cost of surgical procedures in India is less than one-tenth of US rates, while in many developed markets patients have to wait in line for several years for certain operations. An investor presentation by Apollo Hospitals revealed that hip replacement rates in India are $7,000, the lowest among countries such as South Korea, Singapore and Thailand, while in the US it costs $50,000. IVF is another segment that is poised to see a significant increase from current levels. The infertility rate in India is estimated at about 15%, but IVF or Assisted Reproductive Technology (ART) services reach only about 25% of the addressable market.
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