Business Today

Global Hospitals in talks to rope in new investors

Global Hospitals is in talks with private equity investors, financial institutions and some hospital chains to get in one or more either as strategic partners or as investors.

E. Kumar Sharma        Last Updated: February 10, 2015  | 19:42 IST
Global Hospitals in talks to rope in new investors
Though the investors may be keen on a controlling stake in the hospital chain, convincing the promoters and founders of the hospital chain could be a challenge. Picture for representational purpose.

Hyderabad-based Global Hospitals, a multi-speciality tertiary hospital chain, is in advanced talks to rope in new investors and provide an exit to some existing private equity investors such as Everstone Capital, Business Today has reliably learnt.

The hospital is in talks with private equity investors, financial institutions and some hospital chains to get in one or more either as strategic partners or as investors.

While there is little clarity on the hospital chains and institutions that it is talking to, sources confirm media reports that the private equity players interested in the stake include players like Malaysia's IHH Healthcare Berhad and US-based private equity firm TPG Capital Management.

Though the investors may be keen on a controlling stake in the hospital chain, convincing the promoters and founders of the hospital chain could be a challenge.

If TPG were to get a stake, it would strengthen its Indian healthcare portfolio. It has already invested in Manipal Health Enterprises, the healthcare arm of Manipal Group and also in Sutures India, a surgical equipment company.

For IHH, a stake in Global Hospitals could mark a foray into the Indian market with a leading asset.

The planned stake sale, other than providing an exit to some existing investors, would also help Global Hospital get the required capital following its rapid growth and a presence that now spreads across Mumbai, Chennai, Bangalore apart from Hyderabad with a total of around 2,000 beds.

Headed by Dr K. Ravindranath, Founder and Chairman of Global Hospitals group, it has a focus and expertise in multi-organ transplants including kidneys, liver, heart and lung. Dr. Ravindranath shot into national fame when he was one of the liver transplant experts called to Delhi to look at the revival options for BJP leader Pramod Mahajan after he was shot in April 2006.

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