As the June 22 deadline approaches, top hospital chains move swiftly to secure funding for a major acquisition in India’s evolving healthcare landscape.
Manipal Health Enterprises and Fortis Healthcare are in advanced talks with global banks to raise up to ₹5,000 crore in financing to support their bids for Sahyadri Hospitals. With just days left before the bidding deadline on June 22, the two hospital operators are reaching out to international lenders such as DBS, Deutsche Bank, Mizuho Bank, HSBC, and Barclays to fund their acquisition plans. People familiar with the discussions said the financing could range between ₹3,000 and ₹5,000 crore.
According to The Economic Times, Sahyadri Hospitals, a multi-specialty chain operating 11 facilities across Pune, Nashik, and Karad in Maharashtra, is currently owned by the Ontario Teachers' Pension Plan (OTPP). The Canadian pension fund acquired the chain less than three years ago from Everstone Capital at a valuation of ₹2,500 crore. Jefferies has been appointed to manage the sale. OTPP had originally entered the Indian healthcare market with this acquisition, marking its first direct control buyout in the country.
The hospitals under Sahyadri cater to several specialties including transplants, cardiology, neurology, and critical care. The group operates 1,300 beds and has over 2,500 clinicians, supported by a workforce of 3,500. It is also part of key government health programs such as Ayushman Bharat and CGHS. Founded in 1996 by neurosurgeon Dr Charudutt Apte, the chain has grown into a significant player in Maharashtra’s healthcare space.
The move by Manipal and Fortis aligns with a broader trend of consolidation in India’s hospital sector. In late 2024, Blackstone and TPG-backed Quality Care India merged with Aster DM Healthcare, creating India’s third-largest hospital chain with over 10,000 beds. Market watchers see this momentum continuing, driven by increasing investor interest, especially post-Covid.
Private equity investments and foreign direct investment (FDI) in hospitals have surged. In FY24 alone, hospitals attracted FDI worth $1.53 billion, accounting for half of all healthcare investments that year. The sector has also seen six hospitals go public, underscoring renewed capital market confidence. This consolidation and expansion, paired with rising demand for advanced healthcare services, is reshaping India’s hospital landscape.
Industry experts say that the interest from Manipal and Fortis signals the strategic importance of Sahyadri Hospitals. Its regional dominance, empanelment under government schemes, and operational infrastructure offer a strong platform for expansion and integration within larger hospital networks. With growing competition and heightened investor activity, the acquisition could significantly influence the future dynamics of India’s private healthcare sector.
