Hospital Sector

Hospital Sector Acquisitions in India: FY 24 Overview

Industry attractiveness

Healthcare in India is taken as one of the fastest growing sectors in the fastest growing economy by investors. The acquisition during FY 24 is a piece of evidence for the expectation of potential growth of the sector in India. With the rising demand, the increase in interest of strategic investors and upcoming markets brought significant transformation in this space.
Some of the key drivers for boom in hospital sector are

These all have driven an increase in demand for Indian hospital services. Tier II and Tier III cities have demonstrated tremendous potential for growth post covid.

Industry attractiveness has not only attracted private equities and venture capitalists, but the larger group hospital groups have also started acquiring strategically stand-alone units. This has driven consolidation in the industry. The consolidation will help the larger group with

Business valuation

The business valuation of the hospital is influenced by the following factors
Here it is important to note that the acquirer should have clarity about the purpose of acquisition. The valuation should justify the long-run potential of the company considering all the factors. If not, it will create pressure on performance.
The acquirer should carefully consider all factors.

Transaction in FY 24

FY 24 has witnessed a higher number of transactions in the hospital sector as compared to earlier years. As per some reports available, Interest of private equity and Venture capital has increased by 15 times as compared to the pre-Covid period.
We have also noticed that most of the transactions have taken place for the target company in Tier II and Tier III cities, Even the strategy of the acquirer company also depicted in the same line
We have compiled major transactions executed or announced in FY 2024 along with the valuation considered per bed. No need to mention but valuation per bed is one of the criteria. It is not the only base to evaluate the effectiveness of the deal. Also, note that this is not an exhaustive list.

Transactions of hospital acquisitions in India FY 24:

Trn Month Acquirer Target Location Valuation/per bed in Cr Number of beds Inr in Cr Remarks
Apr-23 Temasek Manipal PAN India 40000 8300 4.82 Three projects in pipe lines, Not sure whether education business is included in this or not
Jun-23 KIMS Hiranandani group Thane Mumbai 275 200 1.38 With real estate
Jun-23 Fortis Medeor Hospital Manesar 225 350 0.64 Expected to be operational in nine months
Jun-23 Kauvery Hospital Fortis Vedapala ni 152 200 0.76 -
Jul-23 Morgan Stanley PE Clear Medi health Delhi 285 300 0.95 Cancer chain - Radiation and other equipment will drive substantial business- details not known
Jul-23 BPEA Indira IVF PAN India 9000 NA NA -
Jul-23 Quadria Capital Max vision South and West India 1240 NA NA -
Aug-23 IHH healthcare RGE South India 1008 1500 0.67 -
Sep-23 Manipal AMRI Kolkata 2750 2400 1.15 Govt hold 1% in AMRI
Sep-23 TPG AINU South India 600 500 1.20 -
Sep-23 IndiaRF IVY North India 525 800 0.66 -
Sep-23 Apollo Future Oncology Kolkata 102 325 0.31 Under construction unit
Oct-23 Blackstone Care PAN India 5600 4000 1.40 -
Oct-23 Care KIMS Hyderabad 4800 3500 1.37 -
Oct-23 HCG SRJ CBCC Indore 45 50 0.90 Cancer facility with Linac
Nov-23 MGM Malar Fortis Chennai 128 140 0.91 -
Nov-23 Northwest Venture Regency healthcare Kanpur 450 700 0.64 -
Dec-23 Max Starlit medical centre Lucknow 940 550 1.71 Operational beds 250 , owns nursing college too
Jan-24 Shalby Sanar NCR 118 130 0.91 -
Feb-24 Max Alexis Nagpur 412 200 2.06 JCI accredited. Expandable to 350 beds
Feb-24 Yatharth Fedilis Faridabad 116 175 0.66 -

Expectations of future trend

We believe that future transactions will take share considering the following


As the Indian healthcare sector continues to grow, hospital acquisitions will undeniably play a central role in shaping its future. Industry players always ensure that their acquisitions drive sustainable growth and contribute to a more robust healthcare ecosystem for all.

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