General Atlantic and KKR are among 4-5 private equity firms vying for a majority stake in Faridabad-based hospital chain Asian Institute of Medical Sciences (AIMS), the Economic Times reported on Friday, citing people aware of the matter.
A potential deal is expected to value the North and East India-focused 1,200-bed hospital chain at Rs. 1,500 crore, the report said.
Others keen on the deal include Singapore-based Growtheum Capital and Asia-focused fund Everstone Capital. Funds like India Resurgence Fund (IndiaRF), backed by Piramal Enterprises, and Bain Capital, also explored the deal but eventually decided to withdraw.
US-based PE firm OrbiMed and British International Investment (BII), the UK development finance institution, collectively own a 49% stake in AIMS. Promoter Dr Narendra Kumar Pandey and family hold the rest.
The acquisition talks come at a time when India is seeing unprecedented demand for healthcare amid rising disposable incomes and health awareness.
Most recently, Indian drugmaker Mankind Pharma signed a deal to buy Bharat Serums & Vaccines Ltd (BSV), from private equity firm Advent International for Rs 13,630 crore ($1.63 billion).
Recent billion-dollar deals such as Temasek’s investment in Manipal Hospitals and Blackstone’s $1 billion acquisition of CARE Hospitals have spurred a host of new healthcare funds in the world’s most populous country.
More recently, Maiva Pharma, a contract development and manufacturing organisation, said it has raised Rs 1,000 crore in primary and secondary funding from a fund managed by Morgan Stanley Private Equity Asia and India Life Sciences Fund IV.
