Singapore-based sovereign wealth fund Temasek acquired an additional 41% stake in India’s Manipal Health Enterprises from investors including TPG, boosting its stake in one of the country’s largest hospital chains to 59%. Private equity firm TPG, an investor in Manipal since 2015, will fully exit its stake, though it will reinvest via a new fund. This is the largest deal so far in the Indian healthcare space.
The $2 billion deal, valuing Manipal Hospitals at $5 billion, has brought the focus firmly back on India’s hospital sector as a prime space for FDI and investor capital.
With increasing urbanization, healthcare spending, chronic disease prevalence, and rising life expectancy, the potential for generating market-beating returns through roll-up platform investments in Indian hospitals is immense.
Manipal currently serves over 5 million patients a year through its 29 hospitals in 16 cities with 4,000 doctors, according to a statement issued jointly by the investors.
Billionaire Ranjan Pai expanded the business his grandfather T. M. A. Pai started in 1953 in the fields of education and healthcare. Under Pai’s leadership, the group started Stempeutics, which develops therapeutics from both embryonic and adult stem cells.
