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Global Investors Eye Indian Hospital Chain
15 Oct
Summary
- EQT seeks ₹2,000-2,500 crore investment for AIG Hospitals.
- Promoters plan 10-12% share dilution at ₹22,000-24,000 crore valuation.
- AIG Hospitals to expand by adding 1,000 beds over five years.
Global investors, including Novo Holdings and Singapore's GIC, are in discussions to invest ₹2,000-2,500 crore in AIG Hospitals. Swedish firm EQT is facilitating a fund-to-fund transfer of its four-year-old investment in the Hyderabad-based multi-speciality chain. This move mirrors a broader trend of private equity firms investing in Indian healthcare.
The hospital chain's promoters, chairman Duvvur Nageshwar Reddy and vice-chair Penmetsa Venkata Subbaraju, are leading the sale. They plan to dilute 10-12% of their shares, aiming for a valuation between ₹22,000-24,000 crore. This investment follows EQT's acquisition of a significant stake in 2022.
AIG Hospitals, established in 1994, has grown into a network across three units in Hyderabad, boasting over 1,400 beds. The company has ambitious expansion plans, including a new facility in Visakhapatnam and adding 1,000 beds within the next five years.
EQT and the founders are engaging with potential co-investors and healthcare-focused funds. The founders will continue to manage the company's operations. AIG Hospitals anticipates a strong financial performance, projecting ₹1,000 crore in EBITDA by FY28.
