New Delhi: Sahyadri Hospital Group, a major hospital chain in and around Pune, has received strong interest from leading hospital chains, including Malaysia-based IHH and IPO-bound Manipal Healthcare, for a buyout. The hospital chain, which includes a capacity of 1,200 beds across Pune, Ahmednagar and Nashik, was acquired by the Canadian pension fund Ontario Teachers Pension Plan (OTPP) from the Everstone Group in 2022. Sources say that the proposed deal is estimated at Rs.6,838 crore.
Currently, OTPP owns nearly 100% of the hospital chain, and it has been instrumental in expanding its reach to oncology and other specialities. As the largest multi-speciality hospital chain in Maharashtra, Sahyadri is seen as a prize catch in a market where capital appreciation is a given. With public healthcare access inadequate and often of poor quality, expensive private hospitals have been the default alternative, attracting investors for its consistent returns. Private Hospitals have received investments worth $4.96 billion from PE firms and $3.2 billion in FDI in recent years.
There were reports about OTPP’s desire to sell its stake in Sahyadri since December last year, with entities like Manipal Health, Singapore-based IHH Healthcare and EQT partners, amongst others, who had shown interest in acquiring OTPP’s stake.
Manipal Hospitals has emerged as the frontrunner here. Also known as Manipal Health Enterprises, it is India’s second-largest hospital chain and has been on an aggressive acquisition spree. Backed by Singapore-based Temasek, the company had acquired a 84% stake in Kolkata-based AMRI hospitals in 2023, besides buying out Columbia Asia’s India operations in 2021.
