Marking India’s largest-ever private equity deal in the healthcare sector (and a landmark one at that), Singapore’s Temasek Holdings has acquired a majority stake in Manipal Health Enterprises. The Singapore government-owned fund acquired an additional stake of 41% in the Indian hospitality chain.
With this development, the hospital chain was valued at $5 billion (₹40,000 crores) of enterprise value, according to people with knowledge of the matter. The deal was sealed via Sheares Healthcare India, which is backed by Singapore’s Temasek, and it spent nearly ₹16,000 crores to acquire the additional stake.
With this development, the total stake owned by Temasek in the Ranjan Pai-led Manipal Hospitals comes to 59% (including the 18% it already owned prior to the deal being sealed). This is also Temasek’s largest acquisition in the Indian healthcare space, which is expected to grow at a CAGR of 39% and reach the $50 billion mark by 2033.
Manipal Health Enterprises declined to comment on the matter, although sources claim that an official announcement is expected on Monday. Currently, the stake held by Ranjan Pai and his family has been reduced from 52% to 30%. Texas-based private equity firm TPG Capital Management sold 11% of its total stake of 22% in the Indian hospital chain, while the National Infrastructure Investment Fund (NIIF), another investor divested its entire stake of 8% in Manipal Health Enterprises.
For Temasek, the investment represents a strategic move into India’s healthcare sector, which is rapidly expanding due to rising incomes, an aging population, and an increasing burden of chronic diseases. The acquisition of Manipal Health Enterprises gives Temasek a strong foothold in this market and the potential for significant returns on its investment in the coming years.
The deal also has major implications for the wider Indian healthcare industry. With the backing of a major international investor, Manipal Health Enterprises is likely to expand its operations and invest in new technologies and treatments. This could help to drive innovation in the sector, improve healthcare outcomes for patients, and create new job opportunities.
Being one of the largest hospital chains in India, Manipal Health Enterprises has nearly 8,000 beds across 28 hospitals. Three years ago, it acquired Columbia Asia Hospitals’ Indian assets for ₹100 crores. Later in June 2021, it bought out Bengaluru-based Vikram Hospitals from Multiple Private Equity for around ₹350 crores. And now, it aims to acquire Kolkata-based AMRI hospitals for around ₹2400 crores and awaits the green signal from the West Bengal government.
