In a significant development in India’s healthcare sector Baby Memorial Hospital backed by global investment firm KKR is set to acquire a 60% controlling stake in Star Hospitals for approximately ₹1,800 crore. The deal marks a major step in the ongoing consolidation of India’s hospital industry and reflects growing investor confidence in the sector.
The acquisition reportedly values Star Hospitals at around ₹3,000 crore highlighting the premium valuations commanded by established healthcare assets. The Hyderabad-based hospital chain is known for its strong regional presence and multi-specialty services making it an attractive target for expansion-focused investors.
This transaction is part of KKR’s broader strategy to build a pan-India healthcare platform using Baby Memorial Hospital (BMH) as a core investment vehicle. The firm has been actively expanding in the healthcare space and this deal follows BMH’s earlier acquisition of Meitra Hospitals for around ₹1,200 crore as well as ongoing greenfield expansion plans.
Industry experts note that India’s healthcare sector has witnessed a surge in mergers and acquisitions in recent years driven by rising demand, increasing healthcare spending and the need for scalable hospital networks. Between 2022 and 2024, healthcare deals in India exceeded $30 billion with hospital acquisitions accounting for a significant share of the activity.
The acquisition of Star Hospitals is expected to strengthen Baby Memorial’s footprint in South India while enhancing operational synergies, clinical capabilities and patient reach. It also reflects a broader trend of private equity firms investing heavily in healthcare infrastructure to tap into India’s growing demand for quality medical services.
