Manipal Hospitals Acquires Khubchandani Hospital for INR 415 Cr

Official property registration documents confirm that the acquisition was registered on October 7 and that the stamp duty payment was INR 27.3 Cr. 

Manipal Health Enterprises (MHEPL), a key player in the Indian healthcare sector, has officially entered the Mumbai market by acquiring Khubchandani Hospital for INR 415 Cr. 

Official property registration documents confirm that the acquisition was registered on October 7 and that the stamp duty payment was INR 27.3 Cr. 

This marks a significant milestone in Manipal’s ongoing strategy to expand its footprint in metro cities.

Competitive Valuation in a High-Value Market

The acquisition of Khubchandani Hospital is notable for its competitive valuation, coming in at INR 0.83 Cr per bed. This figure is considered favorable for a high-value real estate market such as Mumbai, where hospital acquisitions often command a much higher price.

This deal follows a series of acquisitions that have shaped Manipal Hospitals' strategy over recent years.

For comparison, Manipal’s earlier acquisition of a 67% stake in Medica Superspecialty Hospital in Kolkata valued Medica at INR 600 Cr, translating to INR 0.5 to 0.6 Cr per bed. 

However, The Medica acquisition involved hospitals in Tier-2 cities such as Siliguri and Tinsukia, which have different valuation dynamics than Mumbai.

Investment-Driven Growth & Challenges

Manipal Hospitals has aggressively pursued growth, backed by a $2 billion investment from Singapore’s sovereign wealth fund, Temasek. The funds have been used to fuel acquisitions, including that of AMRI Hospitals in Kolkata. 

The acquisition of AMRI, valued at INR 2.28 Cr per bed for INR 2,738 Cr, significantly boosted Manipal's presence in Eastern India.

However, despite the rapid expansion, Manipal Hospitals faces challenges in operational efficiency compared to competitors like Apollo Hospitals. 

Manipal currently earns INR 0.58 Cr per bed annually, while Apollo’s revenue per bed stands at INR 0.86 Cr per year. 

The difference highlights the need for Manipal to expand its capacity and improve its operational efficiency, particularly in a competitive market such as Mumbai.

Manipal Hospitals aims to strengthen its presence in Western India with its latest acquisition. 

Adding Khubchandani Hospital to its portfolio marks a strategic step in its ambition to compete with established players in the Indian healthcare market. 

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