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Economic Times
3 days ago
- Business
- Economic Times
Big money is making a beeline for Indian hospitals
Indian hospitals are the new goldmine for deep pockets. Besides a rush of investment, a high-intensity consolidation is ongoing in India's hospital space. As per an ET report based on information from sources, IPO-bound Manipal Health Enterprises is leading the race to acquire Sahyadri Hospitals with a Rs 6,838 crore ($800 million) bid. Global investment firm Blackstone is a close second, sources said. IHH Healthcare-backed Fortis Healthcare and EQT Partners also submitted bids on June 23, which was the last day to submit binding financial bids. ADVERTISEMENT Also Read: Manipal Health Enterprises leads race to buy Sahyadri Hospitals The Pune-headquartered hospital chain, which operates 11 facilities across Pune, Nashik, Ahilya Nagar and Karad, comprising 1,300 beds, 2,500 clinicians and 3,500 support staff, is owned by Canada's pension fund Ontario Teachers' Pension Plan (OTPP), which had acquired Sahyadri from Everstone Capital in August 2022 at a valuation of around Rs 2,500 crore, outbidding Max Healthcare. Everstone had bought the hospital chain three years earlier in 2019 from its founder, neurosurgeon Charudutt Apte, for about Rs 1,000 crore. The big money chasing Sahyadri for past several years is emblematic of the attraction Indian hospitals, especially smaller chains, have come to hold in recent times. Bulge-bracket private equity funds are increasingly investing in single-specialty Indian hospital chains that present a robust growth potential in emerging consuming centers, significantly widening the addressable market beyond their traditional metropolitan bailiwicks, ET had reported in locations, such as Lucknow , Vizag, Jaipur, Cochin, Siliguri, Guwahati, Bhubaneswar and Patna, private equity investors believe, hold great growth potential in healthcare, in lockstep with an increasing affordability quotient in tier- 2 or 3 towns, and a greater availability of qualified doctors and specialists. PE funds are looking for players that will give higher returns - and blockbuster exits when the investments run their course. ADVERTISEMENT 'A trifecta of factors is helping accelerate investor interest in the single specialty healthcare chains including significant growth opportunity in tier 2/3 cities, clearly visible unit economics and viability with best in class ROIs,' Vishal Bali, executive chairman, Asia Healthcare Holdings (AHH), a leading healthcare investment platform, with focus on single specialities like oncology, women and child care, fertility, urology and nephrology, had told ET. 'AHH has been the inflection point for Single speciality healthcare with all our companies in single speciality healthcare delivering consistent growth in revenues, ebitda and geographical reach along with ROIs' he PE monies in treatment areas such as IVF, nephrology, eye-care, oncology, mother & childcare among others, have become a credible prescription for future value creation, after nearly a decade-long hunt for multi-speciality assets across the country. According to an analysis done by Avendus, single-speciality hospitals account for over 40% of all PE investments in healthcare since 2019. This was just a bit over 15% between 2015 and 2018. Between 2020 and early 2025, the segment recorded 24 PE/VC investments totalling $1.8 billion, with 19 of those deals worth $1.2 billion closing in the last two years alone, shows data put together by Grant Thornton. ADVERTISEMENT Over the period of two years from 2022-24 Hospitals in India have become one of the preferred investment destination for Investors, attracting net investment of $4.96 billion from Private Equity and $3.2 billion through Foreign Direct Investment (FDI). ADVERTISEMENT As per a report prepared by consultancy firm Grant Thornton Bharat in collaboration with the Association of Healthcare providers of India (AHPI), from 2022-24 hospitals in India undertook M&A deals worth $6.74 billion and attracted $4.96 billion from Private Equity (PE) investors. During the period, hospitals also raised $466 million through Initial Public Offering (IPO). The report which analysed 594 M&A and private equity transactions that took place during the period states that, 'Hospitals require diverse funding solutions to sustain growth, ranging from equity financing, debt financing, and foreign direct investment (FDI) to public-private partnerships (PPPs).' As per the investment analysis, the top three investment via PE route includes: Temasek Holdings $2 billion investment in Manipal Health (2023); $656 million by BPEA EQT in Indira IVF (2023); and lastly Blackstone Group $591.1 million investment in Quality Care (2023). A recent big deal was by a New York-based global private-equity and investment company, KKR, which in February bought a controlling stake in leading cancer care hospital chain Healthcare Global (HCG) from private equity peer CVC Capital Partners for nearly $400 million. By acquiring Baby Memorial Hospital last year, KKR made a comeback to the sector after one of its biggest paydays in India exiting Max Healthcare two years ago. ADVERTISEMENT Deal-making in India's healthcare sector has surged in recent years, with hospitals now commanding the largest share of foreign direct investment (FDI) within the sector, TOI had reported in December. In FY24, hospitals accounted for 50% of the FDI in total healthcare, translating to $1.5 billion. This marks a significant increase, as the share of hospitals in healthcare FDI has more than doubled from 24% in FY21, and has been rising from 43% in FY20, underscoring their growing prominence. The trend also reflects a strengthening investor preference for hospitals, alongside the traditionally favoured pharmaceuticals strong private equity interest in India's healthcare services companies is a highly credible indicator of the multi-decade growth potential inherent in the sector, as per a top executive at European investment bank Rothschild & Co. "We expect to see expansion of interest as international players evaluate the market and get more comfortable with the domestic landscape," Hedley Goldberg, partner and global head of healthcare services at Rothschild & Co, told ET in an interview in January. Besides a number of private equity deals, the hospital sector is also attracting big Indian businesses. While several corporates such as Tata, Birla and Hinduja have a presence in healthcare, none has made a significant pan-India presence. But the Bajaj Group is preparing to enter the healthcare sector by setting up a chain of hospitals in metros across the country., ET had reported last year. As per Bloomberg, it has earmarked Rs 10,000 crore as an initial investment. In recent years, healthcare companies and hospitals in India have been increasingly focussing on acquiring buildings and properties to expand their operations and strengthen their market presence. This trend is driven by the rising demand for quality healthcare services in urban and semi-urban areas, fuelled by a growing population, increasing health awareness and better insurance coverage. In December last year, billionaire Mukesh Ambani's Reliance Industries acquired technology-driven and oncology-focused healthcare platform Karkinos for Rs 375 crore. Reliance bought it under the Insolvency and Bankruptcy Code (IBC). The healthcare sector, particularly hospitals, witnessed major expansion during the Covid-19 pandemic. However, after the situation eased, it became difficult for many standalone hospitals to sustain their businesses. Such hospitals have been seeing interest from two sets of bidders — those already in the industry and seeking to expand and those who want to turn around such entities before they sell to someone else. Promoter-driven strategic investment firms and hospital operators are scouting for stressed healthcare assets that they can acquire through the insolvency and bankruptcy process, as private equity firms often edge them out in the race for good assets by offering lofty the pharmaceuticals sector, including APIs (active pharmaceutical ingredients), has been the investor favourite, attracting multi-billion-dollar deals. However, post-Covid, the hospital and diagnostics sector has come into the spotlight, drawing a wave of investors. The Indian hospital sector market cap surged 9x from Rs 37,500 crore in FY20 to Rs 3.5 lakh crore, brokerage firm JM Financial said last year in July. At a time when the sector was grappling with inefficiencies, high leverage and low ROCEs, Covid provided a much-needed impetus. This came from improved pricing, higher insurance coverage and dedicated shift towards complex surgeries such as transplants. India's top listed hospital chains performed well in the stock market leading up to this year. Apollo Hospitals' shares climbed 28% in 2024, while Max Healthcare Institute Ltd. soared 64%. The Indian hospital industry is poised to post a healthy compound annual growth rate (CAGR) of about 12% over the next three fiscal years, credit rating agency CareEdge Ratings said last year. Growing incidence of lifestyle diseases and easing demand for affordable health care delivery are driving the healthcare market in India. A report released last year by HSBC Global Research on India hospitals said seven listed hospitals will add 14,000 beds in the next 3-5 years. A total of 22,000 new beds is expected, including those by other private hospital chains. Even with these additions, there will be no over-supply of beds in India. The report said that the addition of beds is triple the number of beds added between FY19-24 at 4,000. Most hospitals are now in a consolidation phase and planning to expand and add sees growth opportunities after making profits between FY19-24 because of low capex. A World Health Organisation (WHO) report said last year that India has only 16 beds per 10,000 people, which is abysmally low if compared with most of the developed and emerging markets. India requires 100,000 additional beds in the next 5-7 years just to meet its healthcare demand on the back of increasing non-communicable diseases such as diabetes, cardiac disorders, and cancer., as per the HSBC report. The government's push to turn India into a global healthcare hub by promoting medical tourism is another strong growth driver for the hospital sector.
Time of India
3 days ago
- Business
- Time of India
Big money is making a beeline for Indian hospitals
Indian hospitals are the new goldmine for deep pockets. Besides a rush of investment, a high-intensity consolidation is ongoing in India's hospital space. As per an ET report based on information from sources, IPO-bound Manipal Health Enterprises is leading the race to acquire Sahyadri Hospitals with a Rs 6,838 crore ($800 million) bid. Global investment firm Blackstone is a close second, sources said. IHH Healthcare-backed Fortis Healthcare and EQT Partners also submitted bids on June 23, which was the last day to submit binding financial bids. Also Read: Manipal Health Enterprises leads race to buy Sahyadri Hospitals The Pune-headquartered hospital chain, which operates 11 facilities across Pune, Nashik, Ahilya Nagar and Karad, comprising 1,300 beds, 2,500 clinicians and 3,500 support staff, is owned by Canada's pension fund Ontario Teachers' Pension Plan (OTPP), which had acquired Sahyadri from Everstone Capital in August 2022 at a valuation of around Rs 2,500 crore, outbidding Max Healthcare. Everstone had bought the hospital chain three years earlier in 2019 from its founder, neurosurgeon Charudutt Apte, for about Rs 1,000 crore. The big money chasing Sahyadri for past several years is emblematic of the attraction Indian hospitals, especially smaller chains, have come to hold in recent times. Small-town hospitals are pulling big money Bulge-bracket private equity funds are increasingly investing in single-specialty Indian hospital chains that present a robust growth potential in emerging consuming centers, significantly widening the addressable market beyond their traditional metropolitan bailiwicks, ET had reported in April. Live Events Non-metro locations, such as Lucknow , Vizag, Jaipur, Cochin, Siliguri, Guwahati, Bhubaneswar and Patna, private equity investors believe, hold great growth potential in healthcare, in lockstep with an increasing affordability quotient in tier- 2 or 3 towns, and a greater availability of qualified doctors and specialists. PE funds are looking for players that will give higher returns - and blockbuster exits when the investments run their course. 'A trifecta of factors is helping accelerate investor interest in the single specialty healthcare chains including significant growth opportunity in tier 2/3 cities, clearly visible unit economics and viability with best in class ROIs,' Vishal Bali, executive chairman, Asia Healthcare Holdings (AHH), a leading healthcare investment platform, with focus on single specialities like oncology, women and child care, fertility, urology and nephrology, had told ET. 'AHH has been the inflection point for Single speciality healthcare with all our companies in single speciality healthcare delivering consistent growth in revenues, ebitda and geographical reach along with ROIs' he said. Parking PE monies in treatment areas such as IVF, nephrology, eye-care, oncology, mother & childcare among others, have become a credible prescription for future value creation, after nearly a decade-long hunt for multi-speciality assets across the country. According to an analysis done by Avendus, single-speciality hospitals account for over 40% of all PE investments in healthcare since 2019. This was just a bit over 15% between 2015 and 2018. Between 2020 and early 2025, the segment recorded 24 PE/VC investments totalling $1.8 billion, with 19 of those deals worth $1.2 billion closing in the last two years alone, shows data put together by Grant Thornton. Billions of dollars pour into hospital sector Over the period of two years from 2022-24 Hospitals in India have become one of the preferred investment destination for Investors, attracting net investment of $4.96 billion from Private Equity and $3.2 billion through Foreign Direct Investment (FDI). As per a report prepared by consultancy firm Grant Thornton Bharat in collaboration with the Association of Healthcare providers of India (AHPI), from 2022-24 hospitals in India undertook M&A deals worth $6.74 billion and attracted $4.96 billion from Private Equity (PE) investors. During the period, hospitals also raised $466 million through Initial Public Offering (IPO). The report which analysed 594 M&A and private equity transactions that took place during the period states that, 'Hospitals require diverse funding solutions to sustain growth, ranging from equity financing, debt financing, and foreign direct investment (FDI) to public-private partnerships (PPPs).' As per the investment analysis, the top three investment via PE route includes: Temasek Holdings $2 billion investment in Manipal Health (2023); $656 million by BPEA EQT in Indira IVF (2023); and lastly Blackstone Group $591.1 million investment in Quality Care (2023). A recent big deal was by a New York-based global private-equity and investment company, KKR, which in February bought a controlling stake in leading cancer care hospital chain Healthcare Global (HCG) from private equity peer CVC Capital Partners for nearly $400 million. By acquiring Baby Memorial Hospital last year, KKR made a comeback to the sector after one of its biggest paydays in India exiting Max Healthcare two years ago. Deal-making in India's healthcare sector has surged in recent years, with hospitals now commanding the largest share of foreign direct investment (FDI) within the sector, TOI had reported in December. In FY24, hospitals accounted for 50% of the FDI in total healthcare, translating to $1.5 billion. This marks a significant increase, as the share of hospitals in healthcare FDI has more than doubled from 24% in FY21, and has been rising from 43% in FY20, underscoring their growing prominence. The trend also reflects a strengthening investor preference for hospitals, alongside the traditionally favoured pharmaceuticals sector. The strong private equity interest in India's healthcare services companies is a highly credible indicator of the multi-decade growth potential inherent in the sector, as per a top executive at European investment bank Rothschild & Co. "We expect to see expansion of interest as international players evaluate the market and get more comfortable with the domestic landscape," Hedley Goldberg, partner and global head of healthcare services at Rothschild & Co, told ET in an interview in January. Besides a number of private equity deals, the hospital sector is also attracting big Indian businesses. While several corporates such as Tata , Birla and Hinduja have a presence in healthcare, none has made a significant pan-India presence. But the Bajaj Group is preparing to enter the healthcare sector by setting up a chain of hospitals in metros across the country., ET had reported last year. As per Bloomberg, it has earmarked Rs 10,000 crore as an initial investment. In recent years, healthcare companies and hospitals in India have been increasingly focussing on acquiring buildings and properties to expand their operations and strengthen their market presence. This trend is driven by the rising demand for quality healthcare services in urban and semi-urban areas, fuelled by a growing population, increasing health awareness and better insurance coverage. Hunt for stressed assets In December last year, billionaire Mukesh Ambani's Reliance Industries acquired technology-driven and oncology-focused healthcare platform Karkinos for Rs 375 crore. Reliance bought it under the Insolvency and Bankruptcy Code (IBC). The healthcare sector, particularly hospitals, witnessed major expansion during the Covid-19 pandemic. However, after the situation eased, it became difficult for many standalone hospitals to sustain their businesses. Such hospitals have been seeing interest from two sets of bidders — those already in the industry and seeking to expand and those who want to turn around such entities before they sell to someone else. Promoter-driven strategic investment firms and hospital operators are scouting for stressed healthcare assets that they can acquire through the insolvency and bankruptcy process, as private equity firms often edge them out in the race for good assets by offering lofty valuations. Why India's hospital sector has turned so hot Historically, the pharmaceuticals sector, including APIs (active pharmaceutical ingredients), has been the investor favourite, attracting multi-billion-dollar deals. However, post-Covid, the hospital and diagnostics sector has come into the spotlight, drawing a wave of investors. The Indian hospital sector market cap surged 9x from Rs 37,500 crore in FY20 to Rs 3.5 lakh crore, brokerage firm JM Financial said last year in July. At a time when the sector was grappling with inefficiencies, high leverage and low ROCEs, Covid provided a much-needed impetus. This came from improved pricing, higher insurance coverage and dedicated shift towards complex surgeries such as transplants. India's top listed hospital chains performed well in the stock market leading up to this year. Apollo Hospitals' shares climbed 28% in 2024, while Max Healthcare Institute Ltd. soared 64%. The Indian hospital industry is poised to post a healthy compound annual growth rate (CAGR) of about 12% over the next three fiscal years, credit rating agency CareEdge Ratings said last year. Growing incidence of lifestyle diseases and easing demand for affordable health care delivery are driving the healthcare market in India. A report released last year by HSBC Global Research on India hospitals said seven listed hospitals will add 14,000 beds in the next 3-5 years. A total of 22,000 new beds is expected, including those by other private hospital chains. Even with these additions, there will be no over-supply of beds in India. The report said that the addition of beds is triple the number of beds added between FY19-24 at 4,000. Most hospitals are now in a consolidation phase and planning to expand and add sees growth opportunities after making profits between FY19-24 because of low capex. A World Health Organisation (WHO) report said last year that India has only 16 beds per 10,000 people, which is abysmally low if compared with most of the developed and emerging markets. India requires 100,000 additional beds in the next 5-7 years just to meet its healthcare demand on the back of increasing non-communicable diseases such as diabetes, cardiac disorders, and cancer., as per the HSBC report. The government's push to turn India into a global healthcare hub by promoting medical tourism is another strong growth driver for the hospital sector.
Time of India
3 days ago
- Business
- Time of India
Manipal Health Enterprises leads race to buy Sahyadri Hospitals with Rs 6,838 crore bid
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel IPO-bound Manipal Health Enterprises is leading the race to acquire Sahyadri Hospitals with a Rs 6,838 crore ($800 million) bid, people familiar with the matter said. It is trailed closely by Blackstone , they the sources did not reveal the financial terms of the global investment firm's offer, the strong interest in the Pune-headquartered hospital chain owned by Canada's pension fund Ontario Teachers' Pension Plan (OTPP) is symptomatic of the high-intensity consolidation ongoing in India's hospital space. IHH Healthcare-backed Fortis Healthcare and EQT Partners also submitted bids on June 23, which was the last day to submit binding financial offers were termed 'uncompetitive' by people ET spoke with. Manipal, Blackstone, Fortis and OTPP declined to comment. EQT did not responded to ET's queries until press time acquired Sahyadri from Everstone Capital in August 2022 at a valuation of around Rs 2,500 crore, outbidding Max Healthcare. Everstone had bought the hospital chain three years earlier in 2019 from its founder, neurosurgeon Charudutt Apte, for about Rs 1,000 crore. ET first reported on December 6 last year that OTPP was planning to put Sahyadri Hospitals on the block. In May, ET reported that Manipal Health, Singapore's IHH Healthcare, Blackstone-owned hospital chain Quality Care India, KKR & Co and EQT Partners were among those that had submitted initial bids for Hospitals operates 11 facilities across Pune, Nashik, Ahilya Nagar and Karad, comprising 1,300 beds, 2,500 clinicians and 3,500 support staff, according to information available on its website. Sahyadri Hospitals is estimated to have posted Rs 210 crore in earnings before interest, tax, depreciation and amortisation on revenue of Rs 1,200 crore in FY25, said a fund manager at one of the bidding private equity Manipal Health, commonly known as Manipal Hospitals, the deal could provide a muchneeded strategic foothold in western India, where it currently lacks a significant presence. In June 2025, KKR invested $600 million in debt into the Manipal Group to support its accelerated expansion and corporate growth IPO-bound Manipal Hospitals, the second-largest hospital chain in India, has been on an aggressive acquisition spree. In 2023, it acquired an 84% stake in Kolkata-based AMRI Hospitals in a deal valued at Rs 2,400 crore. Two years earlier, it bought Columbia Asia's Indian operations for Rs 2,100 crore.
Yahoo
17-06-2025
- Business
- Yahoo
Manipal and Fortis to raise funds to bid for Sahyadri Hospitals
Indian companies Manipal Health Enterprises and Fortis Healthcare are in discussions with international financial institutions to secure financing to support their acquisition efforts, as the bidding deadline of 22 June for the multispeciality hospital chain Sahyadri Hospitals approaches. The lenders include DBS Group Holdings, Mizuho Bank, Deutsche Bank, HSBC Holdings, and Barclays, people with knowledge of the matter said. The financing, which aims to back respective bids of the two companies, ranges from Rs30bn to Rs50bn ($347.61m to $579.35m). Aster DM Healthcare, another contender in the bidding process, has not yet finalised its financing plans, according to sources. The sale of Sahyadri Hospitals is being orchestrated by Ontario Teachers' Pension Plan (OTPP), which holds a 98.9% stake in the hospital chain. OTPP, with more than $3bn in investments, appointed Jefferies to manage the sale earlier this year. The Canadian pension fund had acquired Sahyadri Hospitals at a valuation of Rs25bn from Everstone Capital, which had previously purchased the chain from its founder, Dr Charudutt Apte, in 2019 for Rs10bn. Sahyadri Hospitals, founded in 1996 by neurosurgeon Dr Apte, operates 11 hospitals with 1,300 operational beds across Pune, Nashik, and Karad in the state of Maharashtra. The healthcare provider is part of several government health schemes, including Ayushman Bharat and the Central Government Health Scheme (CGHS). This acquisition comes at a time when India's hospital sector is undergoing consolidation. In February, Fortis Healthcare signed definitive agreements to acquire Shrimann Superspecialty Hospital in Jalandhar, Punjab, India. The acquisition, from partnership company inter alia Shriman Enterprises through a slump sale, is part of Fortis' strategy to expand its network in the region. "Manipal and Fortis to raise funds to bid for Sahyadri Hospitals" was originally created and published by Hospital Management, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Time of India
15-06-2025
- Business
- Time of India
Manipal, Fortis in talks to raise Rs 5,000 cr for Sahyadri Hospitals bid
With the bidding deadline for Sahyadri Hospitals approaching on June 22, interested bidders including Manipal Health Enterprises and Fortis Healthcare are engaging with foreign lenders to raise financing of up to Rs 5,000 crore, people familiar with the matter said. The funds will be used to back their respective bids for the multispecialty hospital chain. The two hospital operators are in discussions with banks including DBS Group Holdings , Deutsche Bank AG, Mizuho Bank, HSBC Holdings and Barclays, the people said, asking not to be named. Aster DM Healthcare , another potential bidder, is yet to firm up financing discussions, the people said. "Fortis and Manipal are in talks with global banks to raise anywhere between Rs 3,000 crore and Rs 5,000 crore to fund the acquisition of Sahyadri Hospitals," one of the people quoted above said. Spokespersons of Manipal, Fortis, DBS, HSBC, Barclays, DB and Mizuho did not immediately respond to requests for comment. Ontario Teachers' Pension Plan (OTPP), which owns a 98.9% stake in Sahyadri Hospitals, is selling the asset less than three years after acquiring control. Sahyadri was Ontario Teachers' first control private equity buyout in India. The Canadian pension fund, which has more than $3 billion invested in India, hired Jefferies earlier this year to run the sale process. ET had reported on December 6, 2024 that OTPP will launch a process to sell Sahyadri Hospitals. OTPP had acquired the company from Everstone Capital at a Rs 2,500 crore valuation, which had earlier bought the chain from founder Dr Charudutt Apte in 2019 for Rs 1,000 crore. OTPP is a global investor with net assets of $266.3 billion as on December 31, 2024. Sahyadri operates 11 hospitals with 1,300 operational beds across Pune, Nashik and Karad in Maharashtra. Its facilities cover specialties, including cardiology, transplants, neurology and critical care. It has over 2,500 clinicians and 3,500 supporting staff. The company is empanelled under several government health schemes, including Ayushman Bharat and CGHS. It was founded in 1996 by Dr Apte, a neurosurgeon. The bidding for Sahyadri comes amid consolidation in India's hospital sector. Late last year, Blackstone and TPG-backed Quality Care India announced a merger with listed Aster DM to form India's third-largest hospital chain with over 10,000 beds. "Post the Covid pandemic, the Indian hospital segment has been in investors' limelight due to a surge in primary market transactions with six hospitals concluding their IPOs, rising interest from new investors, predominantly private equity, for ownership, record FDI inflow into hospitals in FY24 at $1.53 billion, which is 50% of the overall investment in healthcare vs the 27% cumulative share since FY12 and aggressive bed expansion plans of listed hospitals," Tausif Shaikh, India analyst-pharma and healthcare at BNP Paribas India, said in a report released last year.
