Fortis acquires 125-bed People Tree Hospital in Bengaluru for ₹430 crore

Healthcare chain to invest Rs 840 crore to expand the facility's capacity to 300 beds, eyes over 1500 beds in the city by 2028

To strengthen its network in Bengaluru, Fortis Healthcare on Saturday signed definitive agreements for the acquisition of TMI Healthcare, which owns the 125-bed People Tree Hospital in the city’s Yeshwanthpur area for Rs 430 crore. 

 

As part of the transaction, Fortis will acquire a 100 per cent equity stake in TMI Healthcare, along with the hospital infrastructure and the underlying land from the promoters, as well as an adjacent 0.8 acre land parcel from an independent third party.

 

The healthcare chain would invest another Rs 410 crore over the next 3 years, taking the total investment to Rs 840 crore, to expand the facility’s capacity to 300 beds and further augment medical equipment and clinical programmes, including radiation oncology.

 

A NABH-accredited facility, People Tree, offers key specialities such as cardiac sciences, orthopaedics, neurosciences, renal sciences, gastroenterology and paediatrics.

 

The move aims to strengthen the hospital chain’s presence in the Bengaluru cluster, where it already has around 900 beds across seven institutions, including two under operations and maintenance (O&M) agreements.

 

Calling the acquisition strategically important, Ashutosh Raghuvanshi, managing director and CEO of Fortis Healthcare, said that the addition will further strengthen the company’s position in the Bengaluru market.

 

“The deal complements the company’s cluster-focused growth strategy in Bengaluru with an overall potential to scale up to over 1,500 beds across seven facilities over the next three years,” Fortis said in a regulatory exchange on the bourses.

 

The acquisition would be undertaken by Fortis’ wholly-owned subsidiary, International Hospital Limited (IHL), subject to closing adjustments and other terms and conditions as agreed upon in the definitive documents. 

 

The transaction for the deal is expected to be completed by the end of January 2026.

 

The announcement comes just days after Fortis’ primary shareholder, IHH Healthcare, announced its plans to expand capacity by adding 2,000 beds in a bid to double down on value creation in India.

 

IHH’s current stakeholding in Fortis currently stands at 31.17 per cent, and the multinational healthcare chain had recently received approval from the Securities and Exchange Board of India (Sebi) to proceed with its mandatory open offer to acquire a 26 per cent stake each in Fortis Healthcare and Malar Hospitals.    

 

The completion of the open offer also puts focus on whether IHH’s bed expansion would come via greenfield expansions by Fortis.

 

“We are open to doing greenfield hospitals as well, and as and when some appropriate opportunity comes, we will certainly look at that,” Raguvanshi had said in the company’s earnings call for Q2FY26.

 

The chain currently runs 33 healthcare facilities (excluding People Tree), including joint ventures and O&M facilities, with around 5,800 operational beds across India.

 

With the IHH deal in legal limbo, Fortis had been making smaller acquisitions over the past three to four years to expand its bed count, which were mostly brownfield expansions.

 

In the last three financial years, the Delhi-based hospital chain has added over 1,800 beds, with the company having 3,979 operational beds, according to its investor presentation for Q2FY23. Most of this has come through capacity expansion in existing facilities.