Manipal Health Enterprises (NSE:MANIPALHOS) made a strong market debut on Wednesday, with its shares opening 10.5% above the initial public offering price.
The hospital operator's shares opened at 652 Indian rupees, compared with the offer price of 590 rupees.
Manipal Health raised about 92.8 billion rupees through its initial public offering, comprising a fresh issue of 80 billion rupees and an offer for sale worth about 12.8 billion rupees by existing shareholders.
The company plans to use 55.5 billion rupees of the fresh issue proceeds to redeem non-convertible debentures issued by its subsidiary, Manipal Hospitals. It will also invest 5.74 billion rupees to acquire a minority stake in step-down subsidiary Sahyadri Hospitals, with the remaining proceeds earmarked for general corporate purposes.