Novo Holdings, Singapore’s sovereign wealth fund GIC and Abu Dhabi-based Axight are in advanced discussions with EQT to invest ₹2,000–2,500 crore in AIG Hospitals, a Hyderabad-based multi-speciality hospital chain. The potential transaction comes as the hospital’s founders plan to dilute a 10–12% stake at a reported valuation of ₹22,000–24,000 crore.

The proposed investment would involve EQT’s existing investment in AIG Hospitals and a potential stake sale by founders Dr Duvvur Nageshwar Reddy, Chairman and Managing Director, and Penmetsa Venkata Subbaraju, Vice Chairman. The founders are expected to continue managing the hospital chain. The transaction remains under discussion, and the investors have not publicly confirmed its completion.

EQT’s investment dates back to 2022, when its predecessor, Baring Private Equity Asia, acquired Quadria Capital’s stake and invested approximately $300–350 million for a nearly 40% holding. The founders retained the remaining 60% stake, according to reports.

Founded in 1994 as the Asian Institute of Gastroenterology in Hyderabad, AIG Hospitals has expanded into a multi-speciality healthcare network. It operates across three units in Hyderabad, covering more than 40 medical specialities, with over 1,400 beds and 350 intensive care unit (ICU) beds.

The hospital group is also pursuing expansion beyond Hyderabad. It plans to invest approximately ₹2,000 crore over the next five years to develop a new facility in Visakhapatnam, Andhra Pradesh, adding around 1,000 beds. The project is expected to strengthen its regional healthcare capacity and expand access to specialised treatment.

AIG Hospitals expects earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹800 crore in FY2027 and ₹1,000 crore in FY2028, according to the reported transaction outlook.

The discussions reflect continued institutional investor interest in India’s hospital sector, driven by demand for specialised care and expansion opportunities. The potential deal would also provide an opportunity for existing investors to restructure their holdings while supporting the hospital group’s next phase of growth.