Business

Manipal, Fortis in Race to Raise INR 5,000 Crore for Sahyadri Hospitals Bid Amid Healthcare Consolidation

Both hospital groups are in advanced talks with international banks including DBS Group, Deutsche Bank, Mizuho Bank, HSBC, and Barclays. Meanwhile, Aster DM Healthcare, another potential contender, is yet to finalize its financing strategy, the sources added.

• By Newsdesk
• New Delhi
• Jun 16, 2025

Business

As the June 22 bidding deadline for Sahyadri Hospitals draws near, two of India’s leading healthcare providers—Manipal Health Enterprises and Fortis Healthcare—are actively engaging with global financial institutions to secure funding of up to ₹5,000 crore, sources close to the matter have revealed. The funds will bolster their respective bids to acquire the multi-specialty hospital chain, currently owned by Canada’s Ontario Teachers’ Pension Plan (OTPP).

Both hospital groups are in advanced talks with international banks including DBS Group, Deutsche Bank, Mizuho Bank, HSBC, and Barclays. Meanwhile, Aster DM Healthcare, another potential contender, is yet to finalize its financing strategy, the sources added.

“Fortis and Manipal are negotiating with global lenders to raise between ₹3,000 crore and ₹5,000 crore to support their bids for Sahyadri Hospitals,” one of the sources disclosed.

Representatives from Manipal, Fortis, and the involved banks declined to comment on the ongoing discussions.

OTPP, which holds a 98.9% stake in Sahyadri, is exiting the asset less than three years after its acquisition—marking a significant divestment of its first direct private equity buyout in India. The Canadian pension giant, with assets exceeding $266 billion globally and over $3 billion committed to Indian investments, had acquired Sahyadri from Everstone Capital at an estimated valuation of ₹2,500 crore. Everstone, in turn, had bought the chain in 2019 from its founder, neurosurgeon Dr. Charudutt Apte, for approximately ₹1,000 crore.

The sale is being managed by global investment bank Jefferies.

Founded in 1996, Sahyadri Hospitals currently operates 11 facilities with 1,300 beds across Pune, Nashik, and Karad in Maharashtra. Known for its excellence in cardiology, transplants, neurology, and critical care, Sahyadri employs over 2,500 clinicians and 3,500 support staff. The hospital group is also empanelled under major public health initiatives, including Ayushman Bharat and CGHS.

The bidding process comes at a time of intensified consolidation in India’s hospital sector. In a significant move late last year, Blackstone and TPG-backed Quality Care India announced a merger with listed entity Aster DM Healthcare, creating India’s third-largest hospital network with over 10,000 beds.

Investor interest in the Indian healthcare sector has surged post-pandemic, marked by a wave of hospital IPOs, robust foreign direct investment (FDI), and increased activity from private equity firms. In FY24 alone, FDI in the hospital space hit a record $1.53 billion—accounting for half of the total healthcare sector inflows that year.

"The post-Covid environment has turned Indian hospitals into a hotspot for investment, with IPO momentum, growing PE participation, and ambitious expansion plans from listed entities," noted Tausif Shaikh, a pharma and healthcare analyst at BNP Paribas India, in a report last year.

With key players scrambling to gain a stronger foothold in India's growing healthcare market, the Sahyadri acquisition is shaping up to be one of the sector’s most closely watched deals of the year.

(With Inputs from The Economic Times)