Two of India's leading hospital chains, Manipal Health Enterprises and Fortis Healthcare, are reportedly in advanced discussions with foreign lenders to secure significant funding, aiming to raise up to ₹5,000 crore (approximately $600 million USD). This substantial war chest is intended to bolster their respective bids for the acquisition of Sahyadri Hospitals, the largest private multi-specialty hospital chain in Maharashtra.

The move signals an intensifying battle for dominance in India's rapidly consolidating healthcare sector. Sahyadri Hospitals, which operates 11 hospitals across Maharashtra, primarily in Pune, Ahmednagar (now Ahilyanagar), and Nashik, is currently controlled by the Canadian pension fund Ontario Teachers' Pension Plan (OTPP). OTPP acquired a significant majority stake in Sahyadri from the Everstone Group in August 2022, with reports at the time pegging the valuation around ₹2,500 crore. Now, less than three years later, OTPP is looking for an exit and is reportedly seeking a valuation in the range of ₹5,500 crore to ₹6,000 crore for the deal.

Both Manipal and Fortis have been aggressive in their expansion strategies, primarily through mergers and acquisitions, to increase their bed capacities and geographical footprint. Manipal Hospitals, backed by Singapore's sovereign fund Temasek, has been on a spree, acquiring chains like Columbia Asia and Medica Synergie in recent years to become one of India's largest hospital operators. Similarly, Fortis Healthcare has been actively expanding its network, including recent brownfield projects and the acquisition of Shrimann Superspecialty Hospital in Jalandhar.

The potential acquisition of Sahyadri Hospitals would provide the winning bidder with a strong foothold in Maharashtra, a key state with significant healthcare demand. Sahyadri Hospitals boasts over 1,200 beds and has expanded its service lines to include oncology and mother-and-child care since OTPP's acquisition. It is projected to generate around ₹240 crore in EBITDA for FY25, making it an attractive asset for both strategic players like Manipal and Fortis, as well as financial investors.

The bidding process has seen interest from several major players, including global private equity firms like EQT, Blackstone-backed Quality Care India, and Malaysia's IHH Healthcare, which also has a significant presence in India through Fortis. The binding bids for Sahyadri Hospitals are expected after the third week of June, following ongoing due diligence by the interested parties.

This proposed fundraising by Manipal and Fortis underscores the competitive nature of the Indian hospital market and the strategic importance of expanding bed capacity and regional presence. India's healthcare sector is experiencing a boom driven by rising demand for quality medical services, increasing health awareness post-pandemic, and a growing emphasis on specialized care and medical tourism. Large hospital chains are eager to capitalize on this growth, making consolidation a key theme.

The outcome of this bid will not only impact the financials of Manipal, Fortis, and Sahyadri but also reshape the competitive landscape of private healthcare in Western India. The successful bidder will gain a significant advantage in one of the country's most populous and economically vital regions.