Novo Holdings in Talks for 49% Stake in Surya Hospitals

The deal could value Surya Hospitals at around ₹1,000 crore. Competing bidders Kedaara Partners and LeapFrog Investments had earlier submitted non-binding offers, the sources said.

Novo Holdings, the investment arm controlling drug maker Novo Nordisk, has entered into exclusive talks to acquire a 49% stake in Mumbai-based Surya Hospitals, according to people familiar with the matter.

The deal could value Surya Hospitals at around ₹1,000 crore. Competing bidders Kedaara Partners and LeapFrog Investments had earlier submitted non-binding offers, the sources said. Surya Hospitals is currently owned by paediatrician Bhupendra Avasthi and SCP Investments, led by former KKR India private equity head Heramb Hajarnavis.

Surya Hospitals operates facilities in Mumbai, Pune, and Jaipur, as per its website. The chain specializes in care for women and children. According to Registrar of Companies data, the group reported revenues of ₹170 crore in FY24.

Avasthi and Novo Holdings partner Navjeewan Khosla did not respond to queries, while Kedaara Partners and LeapFrog declined to comment.

Consolidation wave in Indian hospitals

The potential transaction adds to a wave of consolidation in India’s hospital sector, driven by private equity investors. Recently, Manipal Hospitals acquired Sahyadri Hospitals from Ontario Teachers' Pension Plan for ₹6,400 crore. Other players, including Aster DM Healthcare, Fortis, Carlyle, and EQT Partners, were also in the race.

In July 2024, KKR acquired Kerala-based Baby Memorial Hospital for ₹2,000 crore. Similar to Surya, Baby Memorial has a paediatric focus. Blackstone merged its hospital platform Quality Care with Aster DM Healthcare in November 2024.

Novo Holdings has expanded its India exposure through recent investments, including a co-investment with TPG Capital in Schott Poonawalla and a stake in diagnostic firm Medgenome.

According to industry estimates, hospitals accounted for half of the $1.5 billion healthcare FDI inflows in FY24, up from 24% in FY21 and 43% in FY20.

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