Fortis Healthcare has acquired Suguna Hospital in Bengaluru for approximately ₹277 crore in an all-cash deal, the company announced on Wednesday. The acquisition was carried out through Fortis' wholly-owned subsidiary, International Hospital Limited, by way of a slump sale. The transaction, completed on October 28, 2026, involves the entire business and operations of Suguna Ramaiah Hospitals Private Limited, along with the purchase of the underlying land and building located on Dr. Rajkumar Road in Rajajinagar. The deal was consummated via a business transfer agreement and a sale deed signed with one of the promoters, Dr. Ramaiah Ravindra. According to the latest reports, this strategic move is part of Fortis' cluster-focused inorganic growth strategy in Bengaluru, adding to the company's healthcare network in the city.
Commissioned in 2006, Suguna Hospital is a 110-bedded facility located on approximately 1 acre of land on Dr. Rajkumar Road in Rajajinagar, north-west Bengaluru. The hospital has the potential to expand its capacity to around 150 beds and recorded revenue of approximately ₹50 crore in FY26, representing a significant increase from the previously reported ₹49.8 crore. According to the latest reports, the facility is strategically positioned in a densely populated micro-market, enhancing Fortis' capacity to deliver quality healthcare services in the region. The target entity reported stable revenue figures over the last three fiscal years, with revenue from operations of ₹49.90 crore in FY25 and ₹49.80 crore in FY26, representing a marginal decline of 0.2% year-on-year. The acquisition includes the entire business operations along with the hospital's land and building, structured as an all-cash deal.
The acquisition follows Fortis' purchase of People Tree Hospital in Yeshwanthpur in January 2026. Together with its existing facility in Rajajinagar and People Tree Hospital, the acquisition gives Fortis a potential capacity of around 500 beds in the north-west Bengaluru corridor. As reported by CNBC TV18, Fortis Managing Director and CEO Dr Ashutosh Raghuvanshi stated that the acquisition would take the company's operational bed capacity in Bengaluru to around 1,000, including its operations and management (O&M) facilities. "This acquisition expands our presence in the city and specifically in the north-west Bengaluru corridor, which we believe is an underserved catchment. With Suguna Hospital in our portfolio, we now have around 1,000 operational beds in the city, including our operations and management (O&M) facilities," said Dr Raghuvanshi. The consideration for the transaction was entirely cash-based, with the acquisition price of ₹277 crore representing a significant multiple relative to the target's recent revenue performance, implying an enterprise value-to-revenue multiple of roughly 5.6x.
Fortis Healthcare shares closed 3.12% higher at ₹759.50 on Wednesday, up ₹23, following the announcement. According to reports from CNBC TV18, the company stated that the acquisition is part of its strategy to expand its presence in focused clusters, with planned investments to upgrade medical infrastructure, expand clinical programmes and add beds to support future growth. The flat revenue trend over the last three years suggests the value proposition lies in operational synergies and infrastructure upgrade rather than immediate organic growth acceleration. The acquisition is expected to bring additional investments for upgrading medical infrastructure and expanding clinical programs, providing Fortis a robust platform to enhance its healthcare offerings in the region. Analysts view this acquisition as a strategic move by Fortis Healthcare to strengthen its foothold in the competitive Bengaluru healthcare market, with the transaction anticipated to enhance the company's service offerings and operational capabilities in the region, potentially leading to increased market share and revenue growth.
