Sahyadri Attracts Bids from Blackstone, Warburg Pincus: Why PE Giants Are Lining Up for Hospital Chain

After Temasek, EQT, and KKR, private equity firms Blackstone and Warburg Pincus have reportedly joined the race to acquire Pune-based hospital chain Sahyadri Hospitals.

Both firms have shown preliminary interest in acquiring the healthcare provider, which is currently owned by the Canadian pension fund Ontario Teachers’ Pension Plan Board (OTPP), Moneycontrol reported, citing sources.

The report added that if a deal materializes, Warburg Pincus may use Sahyadri as a platform to expand its presence in the Indian healthcare sector. Meanwhile, Blackstone may consider acquiring it through its Quality Care platform to become one of the leading hospital operators in the country. Other potential bidders include Singapore’s sovereign wealth fund Temasek, IPO-bound Manipal Hospitals, Malaysia’s IHH Healthcare, Sweden’s EQT, and U.S.-based KKR.

OTPP reportedly began exploring the sale of Sahyadri Hospitals in early 2025, less than three years after acquiring a majority stake in the company. In February 2025, OTPP brought in investment bank Jefferies to advise on the sale, with the deal expected to be announced after the end of April.

Why Are PE Giants Targeting Sahyadri Hospitals?

Sahyadri is Maharashtra’s largest private hospital chain, operating 11 hospitals across Pune, Ahmednagar, Nashik, and other cities. The group has a strong focus on mother and child care, as well as oncology. It operates over 1,200 beds and employs 2,000 clinicians and 4,000 staff members. In 2023, Sahyadri invested around Rs 750 crore to expand its footprint across the state.

According to reports, Sahyadri Hospitals is projected to generate approximately Rs 240 crore in EBITDA for FY25, making it an attractive acquisition target.

A report by Business Standard said the sale could fetch OTPP between Rs 4,000 crore and Rs 6,000 crore.

India’s Hospital M&A Space Heats Up

Driven by rising insurance penetration and growing demand for quality healthcare, the Indian hospital sector is seeing increased investment activity—particularly from global private equity firms.

Blackstone, which acquired KIMS Healthcare, is now among India’s top three hospital operators. Warburg Pincus holds stakes in Indian healthcare companies such as Meril Life Sciences and Metropolis Healthcare.

Other active players include Temasek, KKR, and EQT. KKR, in particular, has acquired stakes in oncology chain HCG and Kerala-based Baby Memorial Hospital, signaling growing consolidation in the sector.