Fortis Healthcare has announced that it has entered into a definitive agreement to acquire People Tree Hospital, a Bengaluru-based healthcare facility, for a consideration of ₹430 crore.
As per the agreement, Fortis will take complete ownership of the 125-bed hospital located in Yeshwanthpur through the acquisition of TMI Healthcare Pvt Ltd, the company that operates People Tree Hospital. The transaction will be executed via Fortis’ wholly owned subsidiary, International Hospital Limited (IHL), the company said in an official statement.
Beyond the acquisition, Fortis Healthcare plans to invest a further ₹410 crore over the next three years. This will take the total commitment to ₹840 crore and will be used to scale up the hospital’s capacity to 300 beds, upgrade medical equipment, and strengthen clinical offerings, including radiation oncology services.
People Tree Hospital, which holds NABH accreditation, provides a wide range of specialised services such as cardiac care, orthopaedics, neurosciences, renal care, gastroenterology, and paediatrics.
The transaction is expected to bolster Fortis’ Bengaluru cluster, where the company currently operates seven facilities with a combined capacity of around 900 beds, including two hospitals managed under operations and maintenance (O&M) arrangements.
Describing the deal as strategically significant, Fortis Healthcare Managing Director and CEO Ashutosh Raghuvanshi said the acquisition would further consolidate 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 filing.
The acquisition will be carried out through Fortis’ wholly owned subsidiary, International Hospital Limited (IHL), and remains subject to customary closing adjustments and conditions outlined in the definitive agreements. The company expects the transaction to be completed by the end of January 2026.
The announcement follows closely on the heels of Fortis’ largest shareholder, IHH Healthcare, unveiling plans to add 2,000 beds in India as part of its strategy to accelerate value creation in the country.
IHH currently holds a 31.17 per cent stake in Fortis Healthcare and has recently received approval from the Securities and Exchange Board of India (SEBI) to move ahead with its mandatory open offer to acquire an additional 26 per cent stake each in Fortis Healthcare and Malar Hospitals.
With the open offer process underway, attention has also turned to whether future bed additions will come through greenfield projects. Addressing this, Raghuvanshi had earlier said, “We are open to doing greenfield hospitals as well, and as and when some appropriate opportunity comes, we will certainly look at that,” during the company’s Q2FY26 earnings call.
At present, Fortis Healthcare operates 33 healthcare facilities across India—excluding People Tree Hospital—including joint ventures and O&M hospitals, with approximately 5,800 operational beds.
Over the past three to four years, Fortis has pursued a series of smaller, largely brownfield acquisitions to expand capacity amid delays related to the IHH transaction. In the last three financial years alone, the company has added more than 1,800 beds, primarily through expansion at existing hospitals, according to its Q2FY23 investor presentation.
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