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What is the story about?
Fortis Healthcare Ltd. on Saturday, December 20, said it has inked definitive agreements to acquire the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru via a 100% acquisition of TMI Healthcare Pvt. Ltd.
Its wholly-owned subsidiary International Hospital Ltd. inked the definitive agreements for the acquisitions.
As part of the transaction, along with the acquisition of TMI Healthcare, IHL will also acquire the hospital building and the underlying land of People Tree Hospital from the promoters of TMI Healthcare and an adjacent land parcel from an independent third party, for 430 crore, the company said. This also includes the debt residing with TMI Healthcare.
People Tree Hospital is located in a residential catchment in northwest Bengaluru with expanding commercial hubs in the vicinity and is well-connected to major transportation hubs, Fortis Healthcare said. The hospital is NABH-accredited and offers key specialties such as cardiac sciences, orthopedics, neuro sciences, renal sciences and gastroenterology, it added.
The acquisition of the adjacent land parcel of 0.8% allows the company a potential expansion of more than 300 beds.
It has planned an additional investment of 410 crore over the next three years in the facility to further augment bed infrastructure, medical equipment and clinical programmes, including radiation oncology.
Based on the current hospital revenues of around 74 crore in FY25, the company said it believes it has an opportunity to strengthen existing operations, enhance revenues and profitability and simultaneously progress with the planned investment.
The transaction is expected to be done by January 2026, subject to the completion of certain conditions precedent as stipulated in the definitive agreements, it added.
"The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market, where we already have a significant presence across seven facilities, including O&M facilities, with a potential to scale up to more than 1,500 beds from 900 beds currently," Dr Ashutosh Raghuvanshi, the MD and CEO of the company, said.
Fortis Healthcare shares ended the previous session 2.6% up at ₹889 per share. The stock has gained 25.5% this year, so far.
Also Read: SEBI chief says engaging with GST Council to unlock market participation
Its wholly-owned subsidiary International Hospital Ltd. inked the definitive agreements for the acquisitions.
As part of the transaction, along with the acquisition of TMI Healthcare, IHL will also acquire the hospital building and the underlying land of People Tree Hospital from the promoters of TMI Healthcare and an adjacent land parcel from an independent third party, for 430 crore, the company said. This also includes the debt residing with TMI Healthcare.
People Tree Hospital is located in a residential catchment in northwest Bengaluru with expanding commercial hubs in the vicinity and is well-connected to major transportation hubs, Fortis Healthcare said. The hospital is NABH-accredited and offers key specialties such as cardiac sciences, orthopedics, neuro sciences, renal sciences and gastroenterology, it added.
The acquisition of the adjacent land parcel of 0.8% allows the company a potential expansion of more than 300 beds.
It has planned an additional investment of 410 crore over the next three years in the facility to further augment bed infrastructure, medical equipment and clinical programmes, including radiation oncology.
Based on the current hospital revenues of around 74 crore in FY25, the company said it believes it has an opportunity to strengthen existing operations, enhance revenues and profitability and simultaneously progress with the planned investment.
The transaction is expected to be done by January 2026, subject to the completion of certain conditions precedent as stipulated in the definitive agreements, it added.
"The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market, where we already have a significant presence across seven facilities, including O&M facilities, with a potential to scale up to more than 1,500 beds from 900 beds currently," Dr Ashutosh Raghuvanshi, the MD and CEO of the company, said.
Fortis Healthcare shares ended the previous session 2.6% up at ₹889 per share. The stock has gained 25.5% this year, so far.
Also Read: SEBI chief says engaging with GST Council to unlock market participation
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