TPG Cap may invest Rs 900 crore in Manipal Health

Mumbai/Bangalore: Private equity giant TPG Capital is in advanced talks to invest up to $150 million (Rs 900 crore) for a minority stake in Manipal Health Enterprises (MHE). The investment is expected to fuel the Bangalore-based hospital chain's expansion plans, people directly familiar with the matter told TOI.

MHE operates over 5,000 beds through 15 hospitals across 11 locations, counting itself among India's top three healthcare services providers. Two years ago, India Value Fund Advisors (IVFA) acquired a minority stake in the company, which plans to double its existing bed count as a part of the company's ongoing expansion.

Manipal had then received Rs 500 crore from IVFA and had the option of raising an almost equal amount from the same investor by March 2014. The healthcare chain could have raised the money if it struck an acquisition deal or had other significant capital deployment opportunities within the timeline, a clause which has since lapsed.

Multiple private equity biggies, including General Atlantic Partners, have had discussions with MHE, but TPG Capital has emerged as a clear frontrunner, sources mentioned earlier in this report said. Last year, leading private equity Carlyle Group picked up a 27% stake in Medanta Medcity Hospital for Rs 960 crore in a similar large-sized healthcare deal.

The MHE healthcare network is part of the billionaire Ranjan Pai-led Manipal Education & Medical Group (MEMG), which has education services and hospitals as its core businesses. The 41-year-old Pai, with an estimated net worth of $1.4 billion, wants to expand the healthcare unit aggressively, stepping into newer geographies and business verticals.

When contacted, Manipal Health Enterprises and TPG Capital declined to comment.

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