Indian hospital major Fortis Healthcare announced that it signed definitive agreements to buy People Tree Hospital, Yeshwanthpur (PTHY), through a 100 per cent acquisition of TMI Healthcare Private Limited, the entity that runs the 125‑bed multi-speciality hospital.
The acquisition will be carried out by Fortis’s wholly owned subsidiary, International Hospital Limited (IHL). As part of a composite deal, IHL will also purchase the hospital building, the underlying land and an adjacent 0.8‑acre land parcel. They are together valued at Rs 430 crore, including the debt residing with TMI Healthcare.
Including the transaction value, Fortis plans to invest about Rs 840 crore to grow a newly acquired hospital into a 300-plus-bed facility over the next three years. The transaction value of Rs 430 crore is subject to customary closing adjustments agreed in the definitive documents.
Ahead of the announcement, Fortis Healthcare stock closed 2.61 per cent higher on Friday at Rs 889 apiece on the NSE.
Fortis, in a regulatory filing, said the deal fits into its “cluster‑focused” growth strategy for Bengaluru, where it already operates seven facilities (including hospitals under operations and management arrangements) with around 900 beds and sees potential to scale up to more than 1,500 beds over the next three years.
People Tree Hospital, Yeshwanthpur, is a NABH‑accredited hospital located in a dense residential area in north‑west Bengaluru, with strong connectivity to major transport hubs. It offers key specialities such as cardiac sciences, orthopaedics, neurosciences, renal sciences and gastroenterology.
Fortis plans to invest an additional Rs 410 crore in the facility over the next three years to expand bed capacity to over 300, upgrade medical equipment and build new clinical programmes, including radiation oncology. Based on current annual revenues of around Rs 74 crore (FY2025), Fortis believes it can strengthen operations and improve both revenue and profitability as it scales up the hospital.
The transaction is expected to be completed by the end of January 2026, subject to the fulfilment of conditions precedent in the agreements.
Fortis MD and CEO Dr Ashutosh Raghuvanshi said the acquisition will deepen the company’s presence in Bengaluru.
People Tree Hospitals founder, MD and CEO Dr Jothi Neeraja said the transition to Fortis marks an important milestone, positioning the Yeshwanthpur unit for “modernisation and long‑term benefits” for patients and staff while retaining its focus on ethical, patient‑centric care.