Manipal Hospitals, India’s second-largest hospital chain, has secured ₹5,300 crore from a consortium of global banks to finance its acquisition of Sahyadri Hospitals. This strategic funding move marks a significant step in Manipal’s aggressive expansion strategy across western India. The loan syndicate includes prominent international banks such as Deutsche Bank, Barclays, MUFG, SMBC, and DBS, who have collectively extended this debt facility under a bond structure routed through Foreign Portfolio Investment (FPI) channels, complying with Reserve Bank of India (RBI) regulations.

The ₹5,300 crore will primarily be used to fund the recently announced ₹6,400 crore acquisition of Sahyadri Hospitals from the Ontario Teachers’ Pension Plan (OTPP). The transaction includes the acquisition of 11 hospitals across key Maharashtra cities including Pune, Nashik, Karad, and Ahilyanagar. With this acquisition, Manipal Hospitals will significantly expand its network to 49 hospitals with over 12,000 beds nationwide—cementing its position as a leading private healthcare provider in India.

The bond issuance has a two-year maturity and carries a yield of approximately 9.5%. Manipal Hospitals plans to redeem the bonds using proceeds from its proposed initial public offering (IPO) expected in 2026. This structured approach ensures financial sustainability while maintaining operational agility. This transaction follows the recent growth trajectory of Sahyadri Hospitals under OTPP’s ownership, which added multiple facilities and increased its bed capacity by over 1,400 in less than three years.

Industry observers have noted that this strategic move reflects the growing investor confidence in India’s private healthcare sector and Manipal’s strong operational credibility. The acquisition is also supported by advisory services from global firms including Jefferies, Alvarez & Marsal, EY, Trilegal, and Latham & Watkins. With Temasek Holdings holding a 59% stake, the Manipal family at 30%, and TPG at 11%, the hospital chain’s leadership remains solid and focused on sustainable growth.

As Manipal Hospitals gears up for its IPO, the Sahyadri acquisition positions it to further its mission of delivering accessible, high-quality healthcare services across the country. The move also signals the growing trend of consolidation in the Indian healthcare space, with leading players expanding aggressively through strategic partnerships and global capital.