In one of the largest deals in the Indian healthcare sector in recent times, Temasek Holdings, the investment arm of the Singapore government, acquired a majority stake in Bengaluru-based Manipal Health Enterprises for over $2 billion, or Rs 16,375 crore. Temasek has acquired an additional 41% stake in Manipal Health, which means that it now holds the majority stake of 59%. It has acquired the stake from promoters and other investors such as TPG Capital Management and National Infrastructure Investment Fund (NIIF), an investment platform anchored by the Indian government, Financial Express reported.
The deal has reportedly valued Manipal Health at an enterprise value of Rs 40,000 crore. Following the transaction, the stakes held by promoter Ranjan Pai and his family will fall from 52% to 30%. TPG Capital has sold an 11% stake from its total 22% stake in the hospital chain. NIIF has exited by selling its 8% stake.
Manipal Health runs India's second-biggest hospital chain after the Apollo Group. Manipal has 29 hospitals in 16 cities of the country.
Manipal Health had previously made some aggressive acquisitions in the health sector. It acquired Columbia Asia Hospitals for over Rs 2,000 crore in 2020, before acquiring Vikram Hospitals in the following year. A deal to acquire Kolkata-based Advanced Medical Research Institute (AMRI) is also reportedly in the works.
Ranjan Pai had massively expanded Manipal Health after taking over the business started by his grandfather TMA Pai, considered the founder of Manipal. Starting with the Kasturba Medical College in Manipal in 1953, TMA Pai established a string of educational institutions in Manipal, in Udupi district of Karnataka. The Manipal group has also started a campus in Bengaluru in 2022, having already set up campuses in Jaipur and Sikkim.