Fortis Buys People Tree Hospital for ₹430 Crore, Targets 1,500+ Beds in Bengaluru

Fortis Healthcare has signed final agreements to acquire TMI Healthcare, which owns the 125-bed People Tree Hospital in Yeshwanthpur, Bengaluru, for ₹430 crore. Through this deal, Fortis will take 100% ownership of the hospital, including its infrastructure and land, along with an additional 0.8-acre land parcel bought from a third party.

Expansion Plan and Investment

Apart from the acquisition cost, Fortis plans to invest another ₹410 crore over the next 3 years. This will take the total investment to ₹840 crore and help expand the hospital’s capacity from 125 beds to 300 beds. The company will also add advanced medical equipment and strengthen clinical services, including radiation oncology.

About People Tree Hospital

People Tree is a NABH-accredited hospital offering key specialities such as cardiac care, orthopaedics, neurosciences, renal sciences, gastroenterology and paediatrics. The acquisition adds a well-established multi-speciality facility to Fortis’ Bengaluru network.

Strengthening Presence in Bengaluru

With this deal, Fortis aims to deepen its presence in Bengaluru, where it already operates around 900 beds across 7 hospitals, including 2 managed under operations and maintenance (O&M) agreements. The company said the acquisition fits well with its cluster-based growth strategy in the city.

Long-Term Growth Strategy

Fortis said the addition of People Tree Hospital gives it the potential to scale up to over 1,500 beds across 7 facilities in Bengaluru over the next 3 years. The acquisition will be carried out through Fortis’ wholly-owned subsidiary, International Hospital Limited, and is expected to close by the end of January 2026.

IHH Healthcare’s Expansion Plans

The announcement comes shortly after Fortis’ largest shareholder, IHH Healthcare, revealed plans to add 2,000 beds in India by 2028. IHH currently holds a 31.17% stake in Fortis and has received SEBI approval to proceed with an open offer to increase its holding.

Focus on Brownfield and Greenfield Expansion

In recent years, Fortis has mainly expanded through smaller acquisitions and capacity additions at existing hospitals. While brownfield expansion remains a key focus, the company has also said it is open to setting up new greenfield hospitals if suitable opportunities arise.

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Fortis Healthcare Share Price Movement

Fortis Healthcare share price (NSE: FORTIS) closed at ₹889 on December 19, rising ₹22.65 or 2.61% during the session. The stock opened at ₹866.35 and moved between a low of ₹866.35 and a high of ₹894.00. Fortis Healthcare is currently below its 52-week high of ₹1,104.30 and well above its 52-week low of ₹577. The stock offers a dividend yield of 0.11%, with a quarterly dividend of ₹0.24 per share.

Conclusion

The acquisition of People Tree Hospital marks a strategic step for Fortis Healthcare as it strengthens its footprint in Bengaluru. With significant investments planned and support from its largest shareholder, the company is well placed to drive long-term growth through both expansion and selective acquisitions.

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