TPG Capital Management said buyout giants including KKR & Co, Baring Asia and Singapore sovereign fund Temasek Holdings are in talks for a 21.5% stake in Manipal Hospitals, people familiar with the matter told The Economic Times. The Texas-based private equity fund hopes to profit from a seven-year investment after a failed attempt to sell shares back to the Pai family in Manipal.

The National Infrastructure Investment Fund (NIIF) owns 8% of Manipal Hospitals, Temasek owns 18%, and the Pai family holds the remaining 52.5%.

The hospital chain’s proposed deal, expected to be worth about Rs 30,000-32,000 crore ($4 billion), would be a prelude to a proposed public offering that Manipal expects to go public in 2023-24, one of the people said.
It is estimated that TPG invested $146 million in Manipal in 2015, and the US private equity firm could generate more than five times returns.

In early July, The Economic Times reported that the Pai family sought $4 billion to $500 million as part of its plan to buy back TPG shares.

TPG is also in talks to exit its investment in nursing hospitals. In a September 13 report, The Economic Times reported that Blackstone, CVC Capital, Brookfield, Temasek and Max Healthcare were bidding for the nursing hospital. In addition, TPG owns Motherhood Hospitals, India’s largest chain of maternal and child hospitals, and Nova IVF, India’s largest chain of infertility clinics.

Manipal Hospitals was established in 1991 by the Pai family, who founded India’s first private medical school in Manipal, Karnataka, in 1953.

Manipal Hospitals acquired the Indian assets of Columbia Asia Hospitals for Rs 210 crore in November 2020 and Bengaluru-based Vikram Hospitals in June 2021 for Rs 350 crore from private equity firm Multiples.