India’s sovereign wealth fund, the National Investment and Infrastructure Fund Limited (NIIFL) has announced an investment of ₹2,100 crores in Manipal Hospitals, a multi-specialty healthcare provider, through its private equity fund NIIFL Strategic Opportunities Fund (SOF). This investment marks SOF’s maiden foray into India’s healthcare space and will support Manipal Hospital’s journey of growth to become the largest hospital chain. The transaction has been signed by both parties and the closing of the transaction is subject to receipt of certain approvals.
For the investment, NIIFL will get a minority stake in Manipal Hospitals as Chairman of Manipal Education and Medical Group Ranjan Pai is selling a small percentage of his stake in the company, a spokesperson of the hospital chain told PTI.
The deal comes close on the heels of billionaire entrepreneur Ranjan Pai-led Manipal Hospitals acquiring Columbia Asia Hospitals in India for ₹2,100 crores last November, making it the country’s second-largest hospital chain after Chennai-based Apollo Hospitals.
Manipal Hospitals, headquartered in Bengaluru, has a major presence across India with 15 hospitals and a key focus on tertiary and quaternary care. Manipal Hospitals operates and manages about 6,000 beds across 15 hospitals. The acquisition of Columbia Asia Hospitals gives Pai’s Manipal Hospitals inroads into Kolkata, Gurugram, Ghaziabad, Patiala, and Pune. Together, the combined entity will have a presence of 27 hospitals across 15 cities with over 7,300 beds and a pool of more than 4,000 doctors and over 10,000 employees. In January, the Competition Commission of India (CCI) cleared the deal.
NIIFL, a collaborative investment platform for international and domestic investors, anchored by the government, invests across asset classes such as infrastructure, private equity, and other diversified sectors, with the objective to generate attractive risk-adjusted returns. It manages over $4.5 billion of equity capital commitments across three funds– master fund, fund of funds, and Strategic Opportunities Fund.
Sujoy Bose, Managing Director & CEO of NIIF, said, “We are delighted to partner with Manipal Hospitals in their next phase of growth. Through this investment, NIIF looks forward to playing a role in serving the healthcare needs of India. The strong governance, processes, and track record of Manipal Hospitals resonate well with NIIF’s investment philosophy. It is exciting to partner with a highly capable management team that has created one of the most efficient healthcare delivery platforms in the country.”
Dr Ranjan Pai, Chairman of Manipal Education and Medical Group, said, “We are very pleased to join hands with NIIF as Manipal Hospitals continues on its path to reach many more geographies and under-served communities to provide both access and superlative clinical outcomes. Investing in the healthcare sector requires a long-term outlook as well as a sensitivity to social responsibilities, and I am glad that in NIIF we have a partner who shares these perspectives.”