Singapore’s Temasek sovereign wealth fund announced on Monday that it would buy another 41% of Manipal Health Enterprises from investors like private equity firm TPG and the National Investment and Infrastructure Fund (NIIF). The action will increase Temasek’s ownership of one of the biggest hospital chains in India to 59%.
Manipal withheld the deal’s value, but a source with firsthand knowledge of the situation said Temasek paid about $2 billion for the extra stake. A request for comment from Manipal was not immediately met with a response.
TPG Will Sell Stake
TPG, a Manipal investor since 2015, will completely sell its holdings in the hospital. However, according to Puneet Bhatia, co-managing partner of TPG Capital Asia, the private equity firm will reinvest through a new fund. By reinvesting through their new Asia fund, TPG Asia VIII, as Bhatia continued, TPG looks forward to continuing to support Manipal’s mission of closing the gap in the nation’s quality healthcare infrastructure.
NIIF to Sell the Entire Stake
The National Investment and Infrastructure Fund of India, a sovereign wealth fund, will also transfer to Temasek its entire ownership of Manipal as part of the agreement. The family stake of Manipal founder Ranjan Pai will drop from about 50% to 30%.
Effect of the Purchase
The fact that Temasek bought more shares in Manipal Health Enterprises. Shows that foreign investors are becoming more interested in India’s healthcare industry. The COVID-19 pandemic has made it clear that India needs more healthcare investment. To meet the rising demand for high-quality healthcare services. It has also exposed the nation’s inadequate healthcare infrastructure. Temasek’s investment will aid Manipal in increasing the caliber. Of its services and establishing a stronger presence in the Indian healthcare industry. Temasek’s ownership of Manipal should increase its access to capital. Enable it to increase its investments in R&D and technology. Manipal’s patients will benefit from the change. By raising the caliber of its offerings and expanding its presence across the nation. The healthcare provider has to shift and prioritize not only providing high-quality services. But also closing the healthcare infrastructure gap in India.
Global Investor Interest in India’s Healthcare Sector
Growing International investors have been showing interest in India’s healthcare industry for a while now. The COVID-19 pandemic has brought attention to the country’s inadequate healthcare infrastructure and the need for increased investment. Global investors have significantly increased their investments in India’s healthcare industry in recent years. The potential for sector growth and the rising demand for top-notch healthcare services have both sparked this.
Overview of Manipal Health Enterprises
With a network of 29 hospitals spread across 16 cities, Manipal Health Enterprises is one of India’s largest healthcare organizations. With a staff of 4,000 doctors, the healthcare provider sees over 5 million patients annually. Manipal is a well-liked option for investors looking to invest in the Indian healthcare sector due to its focus on providing high-quality healthcare services and closing the infrastructure gap in India.
The Acquisition’s Benefits for Manipal Health Enterprises
Temasek’s purchase of an additional stake in Manipal Health Enterprises. It will have number of positive effects for the healthcare provider. Manipal will have more access to capital and be able to increase its investments. In technology, research, and development now that Temasek is the majority shareholder.