Fortis Healthcare Limited announced on December 22, 2025, that it has entered into definitive agreements to acquire the 125-bed People Tree Hospital located in Yeshwanthpur, Bengaluru. Following the announcement, Fortis Healthcare shares rose nearly 2% during intraday trade, touching a high of ₹908.25 after opening at ₹899.90 on the BSE.
Structure of the Acquisition
The acquisition will be carried out through Fortis Healthcare’s wholly owned subsidiary, International Hospital Limited (IHL). Under the agreement, IHL will acquire a 100% stake in TMI Healthcare Private Limited, the company that owns and operates People Tree Hospital.
In addition to acquiring TMI Healthcare, IHL will also purchase the hospital building and the underlying land from the promoters of TMI Healthcare. An adjacent parcel of land will be acquired separately from an independent third party.
Transaction Value
The transaction is structured as a composite deal with a total value of ₹430 crore. This amount includes the existing debt on the books of TMI Healthcare and is subject to customary closing adjustments in accordance with the definitive agreements.
Expansion Plans and Capital Commitment
The acquisition of the adjacent land parcel, measuring approximately 0.8 acres, provides scope to expand the hospital’s capacity to more than 300 beds. To support this expansion, Fortis Healthcare has planned an additional capital investment of ₹410 crore over the next three years. The investment will be directed towards increasing bed capacity, upgrading medical equipment, and strengthening clinical programmes, including the introduction of Radiation Oncology services.
Timeline and Operational Details
People Tree Hospital reported revenues of around ₹74 crore in FY25. The transaction is expected to be completed by the end of January 2026, subject to the fulfilment of customary conditions precedent outlined in the agreements.
Dr. Ashutosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare, stated that the acquisition aligns with the company’s strategy of expanding within focused geographic clusters and will strengthen its presence in Bengaluru, where Fortis already operates multiple facilities.
Dr. Jothi Neeraja, Founder, Managing Director and CEO of People Tree Hospitals, said that the transition to Fortis Healthcare represents an important milestone for the hospital and is expected to support continuity, expansion, and long-term development.
Summary
Fortis Healthcare has signed definitive agreements to acquire People Tree Hospital in Yeshwanthpur, Bengaluru, through a composite transaction valued at ₹430 crore. The deal includes the acquisition of TMI Healthcare, the hospital property, and additional adjacent land, with further planned investments of ₹410 crore to expand capacity and clinical services. The transaction is expected to close by the end of January 2026.
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