SINGAPORE - Temasek has sold a 1.1 per cent stake in Indian private hospital chain Medanta for 3.95 billion rupees (S$64 million), sources close to the Singapore investment company have confirmed.

After trimming three million shares via its unit Dunearn Investments, it still retains a stake of about 17 per cent in Medanta.

The partial exit will generate an estimated realised internal rate of return of around 26 per cent over a hold period of nine years, said the sources on Feb 15, putting the multiple on invested capital at eight times.

Temasek invested around seven billion rupees in January 2015 to acquire nearly 18 per cent in the private hospital chain via Dunearn Investments.

It subsequently raised its stake in Medanta via its subsidiary Sheares Healthcare Group, but its overall holding has been diluted over the years to remain at about 18 per cent.

Temasek emerged as the biggest private equity style investor in India in 2023, with a global portfolio value of $382 billion. Since the start of 2024, it has made three exits in its India’s portfolio.

In early February, it sold a 5.4 per cent direct stake in India-listed PB Fintech amid a rally in India’s tech stocks, securing an internal rate of return of 40 per cent, and a multiple on invested capital at 14 times.

It has also sold an 8 per cent stake in the company behind India’s Manipal Hospitals to a consortium of new investors, including Mubadala Investment Company, Novo Holdings and the California Public Employees’ Retirement System.

The transaction is still ongoing, and no internal rate of return is disclosed yet, the sources told The Business Times. THE BUSINESS TIMES