Manipal Health Buys Sahyadri Hospitals for Likely ₹6,400 cr

Time of India

10-07-2025

Manipal Health Enterprises, India's second-largest hospital chain, has acquired Sahyadri Hospitals from Canada's Ontario Teachers' Pension Plan (OTPP), according to a joint statement issued by both firms.
While they did not officially reveal the financial terms, people privy to the development said the deal was closed at ₹6,400 crore, or around $750 million.
ET had first reported on June 30 that Bengaluru-headquartered Manipal was leading the race to acquire the Maharashtra-focused Sahyadri Hospitals. The report had said the deal would be executed at ₹6,833 crore ($800 million).
'This acquisition will strengthen our presence in Western India, enabling us to extend world class healthcare to more patients,' said Ranjan Pai, chairman of Manipal Education and Medical Group.
IPO-bound Manipal Health, which is backed by Temasek and TPG Capital, will have 12,000 beds nationwide post this acquisition.
Sahyadri 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.
Manipal outbid Fortis, Aster DM Healthcare and Swedish private equity firm EQT to win the race for Sahyadri, according to information ET had published earlier.
Strong Brand | page 10
In June 2025, KKR invested $600 million in debt into the Manipal Group to support its accelerated expansion and corporate growth plans.
Barclays and Allegro Capital, Deloitte and Cyril Amarchand Mangaldas advised Manipal while Jefferies, Alvarez & Marsal, EY and Trilegal were advisers to OTPP.
At the sale price, OTPP has made a 2.6 times return on its three-year old investment.
It had acquired Sahyadri from Everstone Capital in August 2022 at a valuation of around ₹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 ₹1,000 crore.
'Drawing on our global experience and playbook of investing in healthcare services, we saw the potential to build on Sahyadri's strong brand to create a regional healthcare leader,' said Deepak Dara, senior managing director and head of India at OTPP.
OTPP is a global investment manager with $178 billion in net assets. It administers retirement funds for more than 340,000 schoolteachers and administrative staff in the Canadian province of Ontario.
The deal value translates into a valuation multiple of 31 times Sahyadri Hospitals' operating profits of ₹210 crore for 2024-25.
The nation's largest hospital Apollo, which is listed, is valued at 36 times its 2024-25 operating profits.
ET first reported on December 6 last year that OTPP was planning to put Sahyadri Hospitals on the block. ET subsequently reported in May that Manipal, IHH Healthcare-backed Fortis, EQT and Blackstone-backed Aster DM Healthcare were competing to buy Sahyadri Hospitals.