Manipal, IHH, EQT Among Bidders Eyeing Sahyadri Hospitals in INR 5,000 Cr Deal

The bidding process comes as the current owner, Ontario Teachers’ Pension Plan Board (OTPPB), looks to exit its investment.

Multiple hospital chains and private equity firms, including Manipal Hospitals, IHH Healthcare, Max Healthcare, EQT Partners, and KKR, have submitted initial bids ranging from INR 4,500 to INR 5,000 crore for Sahyadri Hospitals, Maharashtra’s largest hospital network.

The bidding process comes as the current owner, Ontario Teachers’ Pension Plan Board (OTPPB), looks to exit its investment.

According to individuals aware of the process, the May 1 deadline for submitting offers has been extended by a few weeks. Other interested parties include Warburg Pincus, Blackstone-owned Quality Care India Ltd. (QCIL), and Ahmedabad-based Torrent Group.

OTPPB acquired Sahyadri in 2019 from Everstone Capital, which purchased it from founder Dr. Charudutt Apte for INR 1,000 crore. At the time, OTPPB outbid Max Healthcare, which had an valuation of around INR 2,500 crore.

Today, Sahyadri operates a network of 11 hospitals in Pune, Nashik, Ahilya Nagar, and Karad. According to its website, the chain employs 2,500 clinicians and 3,500 support staff. Despite ownership changes, cofounders Dr. Apte, Sadanand Bapat, and Nitin Desai remain actively involved.

“Sahyadri is expected to have an EBITDA of INR 210 crore and a revenue of INR 1,200 crore in FY25, where the hospital may be valued at anywhere between 20 and 25 times the EBITDA multiple,” said a fund manager at one of the participating private equity firms.

Private Equity Consolidation Intensifies in Healthcare

The bid for Sahyadri comes amid an ongoing wave of private equity-led consolidation in India’s hospital sector. Several players are expanding through acquisitions to address the country's infrastructural healthcare gaps.

Manipal Hospitals, the second-largest chain in India and currently preparing for an IPO, acquired an 84% stake in AMRI Hospitals in 2023 for INR 2,400 crore. Meanwhile, KKR re-entered the sector last year, acquiring a 70% stake in Baby Memorial Hospital in Kerala with an investment of INR 2,500 crore.

EQT Partners entered Indian healthcare in 2022 with a minority stake in the Asian Institute of Gastroenterology, and Blackstone-backed QCIL had earlier acquired KIMS Health Management at an INR 3,500 crore valuation.

India's public health infrastructure continues to face strain. According to the World Health Organization, the country has only 16 beds per 10,000 people. HSBC Global Research projects that seven listed hospital chains will add 14,000 beds over the next 3-5 years, with total new additions reaching up to 22,000 beds when including other private players.