Manipal Health buys Sahyadri Hospitals for Rs 6,400 crore
Manipal Health Enterprises, backed by Temasek and TPG Capital, has acquired Sahyadri Hospitals from Ontario Teachers Pension Plan for ₹6,400 crore, strengthening its presence in Western India. This acquisition will increase Manipal's bed count to 12,000 nationwide. OTPP made a 2.6 times return on its investment in Sahyadri, which operates 11 facilities across Maharashtra.
Manipal Health Manipal Health Enterprises, India's 2nd largest hospital chain, has bought Sahyadri Hospitals from Canada's Ontario Teachers Pension Plan (OTPP), as per an official release from both sides that did not divulge financial details.ET had first reported on 30 June that Bengaluru-headquartered Manipal was leading the race to acquire the Maharashtra-focused Sahyadri Hospitals.The deal was executed at a price of Rs. 6400 crore (around $750 million), slightly lower than the figure of Rs 6,833 crore ($800 million) that ET had reported, according to sources.
IPO-bound Manipal Health, which is backed by Temasek and TPG Capital, outbid three other players including rivals Fortis and Aster DM Healthcare and Swedish private equity firm EQT, according to information ET had published earlier. "This acquisition will strenghten our presence in Western India , enabling us to extend world class healthcare to more patients," said Ranjan Pai, Chairman, Manipal Education and Medical Group.
Manipal will have 12,000 beds nationwide post this acquisition. In June 2025, KKR invested $600 million in debt into the Manipal Group to support its accelerated expansion and corporate growth plans."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 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.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.Jefferies, Alvarez & Marsal, EY and Trilegal were advisers to OTPP. Barclays and Allegro Capital, Deloitte and Cyril Amarchand Mangaldas advised Manipal.At the current sale price OTPP has made a 2.6 times return on its three year old investment. 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 in to a valuation multiple of 31 times Sahyadri Hospitals' financial year 2024-25 operating profits of Rs. 210 crore. The nations largest hospital Apollo which is listed is valued at 36 times its financial year 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.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 funds.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.
Key highlights
Manipal Health is India's 2nd largest hospital operator. Apollo Hospitals is the largest hospital chain
Sahyadri Hospitals has 11 hospitals in Maharashtra
ET had first reported that Manipal was leading the race to acquire Sahyadri Hospitals on 30 June
Ontario Teachers Pension Plan (OTPP) had purchased Sahyadri Hospitals in August 2022 for Rs. 2,500 crore
OTPP has made 2.6x return by selling its three year-old investment
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