Temasek Sells 1.1% Stake in Medanta for ₹395 Crore, Retains 17% Ownership

16 Feb 2024 , 03:33 PM

Temasek, the Singapore state investment firm, sold a 1.1% stake in the Indian hospital chain Medanta for ₹395 Crore (S$64 million), as reported by The Business Times.

Temasek’s remaining stake in Medanta stands at about 17% after the partial exit, which generated a realized internal rate of return of approximately 26% over nine years. The multiple on the invested capital is reported to be eight times.

The Singaporean financial newspaper notes that Temasek initially invested around ₹700 Crore in January 2015, acquiring almost 18% stake in Medanta through Dunearn Investments. Over the years, Temasek increased its stake via its subsidiary Sheares Healthcare Group, but the overall holding has been diluted to approximately 18%.

Medanta’s operator, Global Health Ltd., reported a 53% YoY increase in net profit to ₹123.54 Crore for the October-December period. The revenue for the quarter recorded a 20.9% rise, reaching ₹854.3 Crore.

Temasek Holdings Ltd., known as Temasek, is an international investment firm wholly owned by the government of Singapore. At the time of writing on Friday, Medanta’s stock on the BSE was trading nearly 3.24% higher at ₹1,435.

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