Fortis Healthcare’s wholly owned subsidiary International Hospital (IHL) has signed definitive agreements to acquire TMI Healthcare Private for Rs 430 crore, the company said in a regulatory filing on Saturday.
The acquisition is being executed through a share purchase agreement under which IHL will acquire 100% equity of TMI Healthcare, comprising over 23 lakh equity shares. Through this transaction, Fortis will take control of the business operations of People Tree Hospital, Yeshwanthpur (PTHY), a 125-bedded multi-specialty hospital located in Bengaluru.
As part of the transaction, IHL will also acquire the hospital building and the underlying land from the promoters of TMI Healthcare, along with an adjacent land parcel of nearly 0.8 acres. The acquisition of the adjacent land will provide Fortis with the potential to expand bed capacity at the facility to over 300 beds, the company added in its statement.
In addition to the acquisition, Fortis plans to invest around Rs 410 crore over the next three years to expand bed infrastructure, augment medical equipment and strengthen clinical programmes, including radiation oncology, the company added. The transaction is expected to be completed by the end of January 2026, subject to customary closing conditions.
Commenting on the development, Dr Jothi Neeraja, Founder, MD & CEO of People Tree Hospitals, said that the transition to Fortis Healthcare marks an important milestone and will enable the hospital to scale operations while continuing to deliver ethical, patient-centric and high-quality care.
“The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market, where we already have a significant presence across seven facilities (including O&M facilities) with a potential to scale up to 1500+
beds from 900 beds currently. The adjacent land parcel will further strengthen the spectrum of healthcare delivery offerings at this facility and enable us to deliver exceptional clinical careably supported by an experienced team of clinicians.” he added.
About the company
Fortis Healthcare operates 33 healthcare facilities across 11 states in India. The company’s network includes approximately 5,800 operational beds, including O&M beds, and over 400 diagnostic laboratories.
Share Price
Prior to the announcement of this acquisition, the stock of Fortis Healthcare share prices on Friday closed at Rs 889, up nearly 3% from its previous close. Over the past one month the company’s stock has declined by nearly 6%.