Novo Holdings Buys 49% Stake in Surya Hospitals for Up to Rs 1,200 Crore

HEALTHCAREBIOTECH

Overview

Danish investment giant Novo Holdings has acquired a 49% stake in India's Surya Hospitals for up to Rs 1,200 crore. The deal underscores continued robust investor interest in the country's specialized healthcare segment, particularly for women's and children's care. This transaction follows a wave of over Rs 10,000 crore in hospital sector mergers and acquisitions last year.

Strategic Focus on Specialized Healthcare

The acquisition marks Novo Holdings' strategic focus on specialized healthcare delivery in India, prioritizing areas with paramount clinical quality and outcomes. Surya Hospitals, a Maharashtra-headquartered chain with facilities in Mumbai, Pune, and Jaipur, has established a decades-long reputation for excellence in women's and children's care.

Seller and Transaction Details

The stake was purchased from SCP Investments, managed by former KKR India private equity head Heramb Hajarnavis. This move by Novo Holdings, which controls Danish drug maker Novo Nordisk, reflects confidence in India's evolving healthcare needs, driven by urbanization and changing demographics.

Broader Sector Dynamics

Industry watchers note this transaction as part of a broader trend. Last year alone saw over Rs 10,000 crore in merger and acquisition activity within the hospital sector. Recent comparable deals include Manipal Hospitals' Rs 6,400 crore acquisition of Sahyadri Hospitals and KKR's Rs 2,000 crore investment in Kerala-based Baby Memorial Hospital, also focusing on pediatric care.

Future Growth Prospects

While financial specifics were not disclosed, sources familiar with the matter indicated the transaction valued Surya Hospitals between Rs 1,000-1,200 crore. JM Financial served as the advisor for this deal, facilitating the partnership between Novo Holdings and Surya Hospitals' chairman and managing director, Bhupendra Avasthi.

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