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​TPG picks around 25% in Manipal Health for $150M

23 January, 2015

Manipal Health Enterprises Ltd, the healthcare arm of Manipal Group, has raised $150 million (over Rs 900 crore) from TPG Capital for expansion, sources privy to the development told VCCircle.

The PE firm is learnt to have picked 24.75 per cent stake in the process, valuing the firm at Rs 3,636 crore or just under $600 million.

The deal has been in the works for many months but it has been sealed now. “The deal is done. Puneet Bhatia from TPG has joined the board of Manipal,” said one of the sources.

Manipal Health Enterprises is a provider of healthcare services in India operating multi-specialty hospitals in Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Goa; clinics in Bangalore and other parts of Karnataka; medical teaching hospitals in Karnataka and Sikkim and fertility clinics in the states of Karnataka, Andhra Pradesh, Tamil Nadu and Madhya Pradesh.

Another group firm Manipal Health Services Pvt Ltd is also engaged in the provision of hospital services in India and manages and operates four teaching hospitals of the Manipal Group, located in Manipal, Mangalore, Udupi and Karkala. As part of its core healthcare business, this firm leases and sub-leases its properties to Manipal Health Enterprises, in return for a fee.

In a parallel deal, Manipal Health Enterprises is also acquiring certain real estate assets of Manipal Health Services through a demerger.

Last week the Competition Commission of India (CCI) had cleared TPG’s investment in Manipal Health Enterprises.

Repeated calls and an e-mail query sent to Ajay Bakshi, CEO of Manipal Health, for more details and confirmation on the deal value remained unanswered and an e-mail query sent to TPG spokesperson in India also did not immediately elicit any response.

Manipal has been scaling up with a mix of organic expansion and acquisitions to move into new geographies. With around 5,500 beds under management, it is among the top-tier hospital chain operators in the country.

The firm has also attracted a clutch of PE firms namely India Value Fund Advisors, IDFC Alternatives and Kotak Private Equity to bankroll its business plans. Manipal Health Enterprises roped in Ajay Bakshi from Max Healthcare as managing director & CEO early last year.

Last year Manipal entered a strategic partnership with the Bangalore-based healthcare startup Portea Medical Pvt Ltd to offer post-operative care to patients at their homes.

TPG has two separate teams operating in India. TPG Capital, investing through its Asia and global buyout fund, is led by Puneet Bhatia. TPG Capital looks at large buyouts and strategic transactions.

The other unit is under TPG Growth, which is led by Vish Narain. TPG Growth has invested in companies like Sutures India, paper packaging company Flexituff International, application software company AGS Transact and real estate development company Shriram Properties, among others.

Most recently, early this month, TPG backed eyewear e-tailer Lenskart.

Hospital firms have been a hotbed of PE activity. Most recently Temasek acquired a stake in Medanta. Some hospital chains are also queueing up for IPOs.

(Edited by Joby Puthuparampil Johnson)


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​TPG picks around 25% in Manipal Health for $150M

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