Manipal Hospitals said on Monday that the international alternative asset management company TPG will reinvest its 11% ownership in Manipal Health Enterprises Pvt Ltd (MHEPL) through its newest fund, TPG Asia VIII. Following a formal announcement that Singapore's Temasek private equity firm had purchased an additional 41% share in the hospital network, Manipal made this statement.
Under a premium deal, if the transaction closes, the Ranjan Pai-led Manipal Group will hold roughly 30% of MHEPL while National Investment & Infrastructure Fund (NIIF) will sell its interest in the business. According to the deal, Temasek's fully owned subsidiary and portfolio firm Sheares Healthcare Group will keep its existing 18% share.
TPG, which made its initial investment in MHEPL through TPG Asia VI in 2015, will completely exit the hospital chain but retain an 11% stake through its newest Asia fund, TPG Asia VIII, according to MHEPL.
"Since our investment in 2015, we have witnessed Manipal’s transformational journey of becoming one of the largest, best-managed and patient-centric healthcare networks in India. By re-investing through our new Asia fund – TPG Asia VIII, we look forward to continuing to support Manipal’s mission of bridging the quality healthcare infrastructure gap in the country,” Puneet Bhatia, Co-Managing Partner of TPG Capital Asia, said.
Dr. Ramdas Pai launched Manipal Hospitals, one of the major actors in the Indian healthcare system, in 1991. Manipal Hospitals, which is headquartered in Bangalore, operates all throughout India. Currently, the hospital network's 29 institutions serve more than 5 million patients annually.
The Manipal Group has been growing rapidly over the past few years. With over 8,300 beds distributed across 16 locations, the hospital chain MHEPL became the second-largest in the nation in 2021 after purchasing the chains Columbia Asia and Vikram Hospitals as well as the diagnostics firm Medcis Pathlabs.