India’s primary market appears to be entering a new phase. While technology, financial, and consumer-sector companies have dominated the IPO landscape over the past few years, hospital networks and IVF (In Vitro Fertilisation) chains are now rapidly gaining investor attention.
In the coming period, both the number and value of healthcare-related IPOs are expected to rise sharply. The growing focus on hospital networks and IVF chains suggests that healthcare is no longer viewed merely as a defensive sector, but is emerging as a strong structural growth story.
Let us explore this in detail.
What’s Happening?
The move by hospital and IVF clinic chains towards the IPO market is not sudden. Over the past few years, the healthcare sector has delivered steady and robust growth, prompting many companies to prepare for capital raising through public markets.
Estimates suggest that by the end of 2026, the total value of healthcare IPOs could reach around Rs 20,000 crore, with hospital networks and IVF chains playing a significant role.
According to investment bankers, patient volumes in the hospital sector are rising, margins are improving, and consolidation is accelerating. This offers investors better earnings visibility, while favourable valuations are encouraging promoters to tap the IPO route.
Why Are Hospital and IVF Players Moving Towards IPOs?
The primary reason hospital and IVF companies are heading towards IPOs is their strong fundamentals. A steady rise in patient volumes, improving margins, and clearer earnings visibility have made these businesses increasingly attractive to investors.
Another key factor is the need for large amounts of capital to fuel growth. Raising funds from public markets has emerged as an efficient way to build new hospitals and IVF centres, expand bed capacity, and invest in technology. Additionally, limited access to healthcare services in India is accelerating this trend. Healthcare spending accounts for only around 3% of GDP, and there is a significant shortage of specialised services, creating long-term growth opportunities for the sector.
In the IVF segment, rising infertility cases and growing acceptance of assisted reproductive technologies have enabled organised IVF chains to scale up. As a result, these companies now see themselves as ready for public listings. At the same time, IPOs provide private equity investors with a strategic exit route, while companies gain fresh capital for expansion and debt reduction.
Rising IPO Activity in the Healthcare Sector
IPO activity in the healthcare sector is expected to accelerate further in 2026. Manipal Hospitals, the country’s second-largest hospital chain, is preparing for an IPO worth around Rs 8,500–9,000 crore, which could be among the largest public issues in the sector. Meanwhile, South India-based Kauvery Hospital is also planning to raise over Rs 1,500 crore from the market.
In addition, names such as Asia Healthcare Holdings, Indira IVF, and Cloudnine are lined up for IPOs. Indira IVF refiled its Draft Red Herring Prospectus (DRHP) confidentially in July 2025 for an issue of around Rs 3,500 crore, while maternity and child-care player Cloudnine is preparing to raise over Rs 1,000 crore. Potential issues from Paras Hospitals and Yashoda Hospitals further indicate that healthcare IPOs could emerge as a major opportunity for investors in the coming period.
What’s in It for Investors?
From an investor’s perspective, hospital and IVF IPOs represent a long-term structural growth theme. Healthcare is a sector where demand tends to remain relatively stable, and business visibility is long term in nature.
However, investors must also keep in mind that healthcare IPOs often come at premium valuations. Relying solely on the sector’s growth narrative can therefore be risky. It is crucial to closely evaluate the business model, expansion strategy, plans for capital utilisation, and the strength of the balance sheet.
Amid the growing crowd of IPOs, only those companies with a strong execution track record and financial discipline, alongside growth, are likely to deliver superior performance.
What’s Next?
In the coming years, India’s healthcare IPO space is likely to become even more active. According to reports, India’s IPO pipeline for 2026 is estimated at around Rs 2 lakh crore, with the share of hospital and IVF companies steadily increasing. This highlights that the role of the healthcare sector in the primary market is set to become more important than ever.
The entry of hospital and IVF chains into the IPO market signals that the sector is moving into its next phase of growth. However, amid such a large IPO pipeline, selectivity will become increasingly important for investors. While the coming phase is undoubtedly rich with opportunities, only those who balance enthusiasm with prudence are likely to achieve better outcomes.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
