Fortis Healthcare Signs Definitive Agreements to Acquire People Tree Hospital for ₹430 crore

On December 22, 2025, Fortis Healthcare share price soared ~2%, reaching a day high of ₹908.25 at 10:05 AM, after opening at ₹899.90 on BSE. The gain in Fortis Healthcare shares follows the company’s announcement of the acquisition of the 125-bed People Tree Hospital located in Yeshwanthpur, Bengaluru.

Fortis Healthcare further stated that the acquisition will be executed through a 100% purchase of TMI Healthcare Private Limited, the entity that owns and operates People Tree Hospital. The transaction will be undertaken by Fortis’ wholly owned subsidiary, International Hospital Limited (IHL).

Composite Transaction Valued at ₹430 Crore

As part of the composite transaction, IHL will acquire not only TMI Healthcare but also the hospital building and the underlying land from the promoters of TMI Healthcare. Additionally, IHL will purchase an adjacent land parcel from an independent third party.

The cumulative transaction value is ₹430 crore, inclusive of debt on the books of TMI Healthcare, and will be subject to customary closing adjustments as outlined in the definitive agreements.

Additional Investment of ₹410 Crore 

The acquisition of the adjacent land parcel, measuring approximately 0.8 acres, provides Fortis with the opportunity to significantly expand the hospital’s capacity to over 300 beds.

To support this growth, Fortis has planned an additional investment of ₹410 crore over the next three years. This capital will be deployed towards expanding bed infrastructure, upgrading medical equipment, and strengthening clinical programs, including the addition of Radiation Oncology services.

Completion by Jan 2026

With People Tree Hospital generating revenues of approximately ₹74 crore in FY25, Fortis sees significant potential to enhance operational efficiencies, drive revenue growth, and improve profitability while simultaneously executing the planned expansion. The transaction is expected to be completed by the end of January 2026, subject to the fulfillment of customary conditions precedent as specified in the definitive agreements.

Dr Ashutosh Raghuvanshi, MD & CEO of the Company, said, “The acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies. 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 care ably supported by an experienced team of clinicians.”

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Dr Jothi Neeraja, Founder, MD & CEO, People Tree Hospitals, said, “People Tree Hospitals, co-founded with Dr. Upendra Kandluri, has always been guided by a vision of ethical, patient-centric and high-quality care. The strategic transition to Fortis Healthcare marks a pivotal milestone in this journey – reflecting our unwavering commitment to clinical excellence and robust governance. 

With Fortis’ extensive resources and expansive clinical programs, People Tree Hospital, Yeshwanthpur is now poised to reach new heights while upholding its founding values, ensuring continuity, modernisation and long-term benefits for both patients and employees.”

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