Ranjan Pai-led Manipal Health Enterprises on July 9 agreed to acquire Pune-based Sahyadri Hospitals from Canada’s Ontario Teachers’ Pension Plan (OTPP).
The ₹5,900 crore deal, announced by OTPP, will make the Mangalore-based Manipal Education and Medical Group (MEMG) the largest private sector hospital chain in India, adding 11 hospitals across Pune, Nashik, Ahilya Nagar, and Karad.
Details have emerged on how the Pai-led hospital giant plans to fund the acquisition. According to the Economic Times, the company will borrow nearly ₹5,300 crore from five foreign banks, including European lenders Deutsche Bank and Barclays, Japan's Mitsubishi UFJ Financial Group (MUFG) and Sumitomo Mitsui Banking Corp (SMBC), and Singapore’s DBS Bank.
Earlier, Bloomberg also reported similar debt funding for the acquisition. However, that report included JPMorgan Chase & Co. and Standard Chartered Plc, and claimed that the funds were expected to be raised via rupee bonds or loans with tenures ranging from three to five years.
As per the Economic Times, the foreign banks will invest in Manipal Hospitals' bonds via the FPI (foreign portfolio investor) route, as RBI regulations prohibit onshore lending for M&A deals. These bonds—likely subscribed through Singapore-based FPI entities—will be redeemed within two years using proceeds from Manipal’s planned IPO in 2026. The report stated that all five banks signed the covenants on Monday.
How Sahyadri Hospitals Strengthens Manipal
Founded by Ranjan Pai in 2010, Manipal Health Enterprises operates over 30 hospitals across 19 Indian cities, with more than 9,500 beds and 5,000 doctors. Singapore’s Temasek owns 59% of Manipal, with promoter Ranjan Pai holding 30% and TPG holding the remaining 11%.
The company’s revenue rose from ₹4,000 crore in FY22 to ₹4,800 crore in FY23, with EBITDA margins at 26.6%. In H1 FY24, it reported ₹2,619 crore in revenue and ₹741 crore in EBITDA.
Sahyadri Hospitals, one of Maharashtra’s largest hospital chains with 11 hospitals and over 1,400 beds, has seen significant growth over the past three years under Ontario Teachers’ Private Capital. Led by CEO Abrarali Dalal, the chain has received over ₹900 crore in investments since 2022 to upgrade infrastructure, attract clinical talent, and expand its presence in smaller cities.
According to the report, proceeds from Manipal Health’s IPO will be used to repay the bonds raised for this acquisition. The company is reportedly planning a $1 billion IPO in 2026, targeting a valuation of $8–10 billion. The offering will include both fresh capital and stake sales, aimed at funding further acquisitions, reducing debt, and expanding services.
