Summary:

India's hospital industry is experiencing a rise in investment, with private equity and international investors acquiring properties as consolidation continues. Manipal Health Enterprises, which is planning an IPO, has allegedly offered Rs. 6,838 crore (US$ 796.9 million) for Sahyadri Hospitals, competing with Blackstone, Fortis Healthcare, and EQT Partners. Sahyadri, owned by the Ontario Teachers' Pension Plan since 2022, has 11 institutions with 1,300 beds. The rush indicates increased investor interest in smaller hospital chains, as well as the sector's potential for expansion in tier II and III cities.

Between 2022 and 2024, Indian hospitals raised Rs. 7,246 crore (US$ 844 million) in IPOs, Rs. 39,918 crore (US$ 4.65 billion) in private equity, and Rs. 27,459 crore (US$ 3.2 billion) in foreign direct investment. PE funds are transitioning from multi-specialty to high-return markets such as cancer, IVF, and maternity. Temasek invested Rs. 17,162 crore in Manipal Health, while KKR invested Rs. 3,432 crore in Healthcare Global. With increased lifestyle disorders and poor bed density, the Rs. 3,50,000 crore hospital industry is expected to develop at a 12% annual pace, attracting multinational corporations.

Source: IBEF

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