Manipal, IHH, EQT & others eye Sahyadri Hospitals in Rs 5,000 crore bidding war

Manipal Hospitals, Singapore’s IHH Healthcare, Blackstone-owned infirmary concatenation Quality Care India, Max Healthcare, KKR & Co. and EQT Partners are among those that person submitted archetypal bids for Sahyadri Hospitals, said radical alert of the matter. The bids are successful the scope of Rs 4,500-5,000 crore, they said. Sahyadri, Maharashtra’s largest infirmary chain, is owned by Canada's Ontario Teachers’ Pension Plan Board.

The May 1 deadline for bids has been extended for a fewer much weeks, said the radical cited. Warburg Pincus and Ahmedabad’s Torrent Group are besides funny successful the infirmary chain, they said.

ET archetypal reported successful December connected Ontario Teachers’ program to merchantability Sahyadri. It had acquired the concatenation astatine a valuation of astir Rs 2,500 crore from Everstone Capital, outbidding Max Healthcare. Everstone had bought it successful 2019 from laminitis and starring neurosurgeon Charudutt Apte for Rs 1,000 crore. The concatenation has a web of 11 hospitals successful Pune, Nashik, Ahilya Nagar and Karad.

Cofounders Still Involved successful Chain
Sahyadri has 2,500 clinicians and 3,500 enactment staff, according to its website. Cofounders Apte, Sadanand Bapat and Nitin Desai stay progressive with the concatenation that started with the Pune Institute of Neurology arsenic its archetypal infirmary successful 1994.

“Sahyadri is expected to person an ebitda of Rs 210 crore and a gross of Rs 1,200 crore successful FY25, wherever the infirmary whitethorn beryllium valued astatine anyplace betwixt 20 and 25 times the ebitda multiple,” said a money manager with 1 of the bidding PE funds. Ontario Teachers’ is simply a planetary capitalist that had nett assets of $178 cardinal connected June 30, 2024, and manages status wealth for 340,000 moving and retired schoolhouse teachers and administrative unit successful the Canadian province.

Ontario Teachers’, EQT Partners, Warburg Pincus and KKR declined to comment. Manipal, IHH Healthcare, Quality Care India, Max Healthcare, and Torrent Group didn’t respond to queries. The assemblage has seen a question of PEled consolidation successful India aft aggregate acquisitions by ample chains specified arsenic IPO-bound Manipal Hospitals, the second-largest infirmary concatenation successful India, which is connected an acquisition spree and expanding its footprint crossed the country. In 2023, Manipal had acquired an 84% involvement successful Kolkata-based Advanced Medical Research Institute (AMRI) Hospitals successful a woody worthy Rs 2,400 crore.

Last year, KKR made a comeback successful the Indian infirmary sector, 2 years aft its mega exit from Max Healthcare, by acquiring astir 70% of Kerala’s Baby Memorial Hospital (BMH) with an concern of $300 cardinal (Rs 2,500 crore). Kozhikode-based Baby Memorial is among the largest hospitals successful the confederate authorities with 500 beds crossed 3 facilities.

EQT Partners (formerly Baring PE Asia) made an introduction into the abstraction successful 2022 by acquiring a important number involvement successful India’s starring gastroenterology hospital, Hyderabad-based Asian Institute of Gastroenterology (AIG) Hospitals.

Earlier, Quality Care India (QCIL), backed by PE funds Blackstone and TPG, acquired astir 85% of KIMS Health Management, different starring infirmary concatenation successful Kerala astatine a `3,500 crore valuation. KIMS laminitis promoter MI Sahadulla holds astir 15% and continues to tally the business.

As per a World Health Organization (WHO) report, India has conscionable 16 beds per 10,000 people. A caller study by HSBC Global Research said 7 listed chains volition adhd 14,000 beds successful the adjacent three-five years successful the country. A full of 22,000 caller beds is expected, including those by different backstage infirmary chains, it said.

India's healthcare manufacture demonstrates awesome advancement, boasting a CAGR of astir 22% since 2016, according to Invest India’s Investment Grid report. Projections awesome the location healthcare assemblage reaching a important $21.3 cardinal marketplace worth by 2027. Public wellness expenditure is anticipated to emergence to 2.5% of GDP by 2025 from 1.15% now.