Three main hospital chains — True North-backed Cloudnine Hospitals, Naresh Trehan’s Medanta and Gurgaon-based Park Group — are planning to raise up to Rs 6,300 crore by preliminary public choices, amid excessive investor curiosity in healthcare amenities within the aftermath of the Covid-19 pandemic.
ICICI Securities, JM Financial, Kotak Mahindra Capital, SBI Capital, Jefferies and Credit Suisse are amongst funding bankers appointed to handle a few of these proposed IPOs, three folks accustomed to the matter instructed ET.
While Cloudnine could also be elevating Rs 2,500-3,500 crore, Medanta is wanting to mop up about Rs 2,000 crore and the Park Group of Hospitals is concentrating on round Rs 800 crore, they mentioned. They IPOs will embrace newly issued shares in addition to sale of stake by some present buyers.
Cloudnine and Medanta are in superior phases to launch their IPOs within the subsequent four-eight weeks. Deliberations have begun for the share sale of Park Group which is predicted to hit Dalal Street later this 12 months.
“Investment bankers are closely working with Cloundnine and Medanta,” mentioned one of many folks.
Private hospitals are a compelling story for buyers amid rising demand for healthcare and widening insurance coverage protection. Shares of
and Max Healthcare, two of India’s high listed chains, have gained 45-49% previously three months, in contrast with a 9% enhance within the benchmark BSE Sensex. KIMS Hospitals has gained greater than 45% since its itemizing late June.
Cloudnine is India’s main chain of hospitals for girls, youngsters and fertility remedies. The Bengaluru-headquartered firm with 18 amenities in eight cities goals to use proceeds from the sale of recent shares to open one other six 24 amenities by March 2022.
Founded in 2006, Cloudnine is backed by True North, NewQuest and Sequoia India. True North is the most important shareholder with an about 35% stake. Promoters maintain about 20-25%, whereas NewQuest and Sequoia India collectively personal 35% stake. The relaxation is given away as worker inventory choices.
Cloudnine is estimated to be valued at Rs 7,300 crore (or about $1 billion) on this proposed IPO, which may even see half exit by Sequoia, the folks mentioned.
Medanta’s The Medicity in Gurgaon is likely one of the largest single-location non-public sector hospitals in India, with 1,300 beds, together with 246 critical-care beds. Medanta is run by Global Health Pvt Ltd.
Private fairness buyers Carlyle Group and Temasek which maintain 27% and 18%, respectively, will possible make half exits, mentioned the folks. About 55% of the stake is held by Trehan and his members of the family, and cofounder Sunil Sachdeva.
Carlyle, an early investor in Medanta, has been wanting to exit its eight-year-old funding for the final three-four years. In 2019, the Medanta administration was in superior phases of talks with Manipal Hospitals to promote an about 82% stake at a valuation of Rs 5,800 crore. However, the deal had fallen by due to disagreement over valuation.
Park Group of Hospitals is a sequence of a dozen hospitals in North India. Some of its specialty areas are cardiac surgical procedure, interventional cardiology, most cancers care, obstetrics and gynaecology.
Spokespeople for Cloudnine, Temasek and Sequoia declined to remark, whereas mails despatched to Medanta, True North, NewQuest, Carlyle and the Park Group didn’t elicit any responses until press time Sunday.
“About 70% of the bed capacity across multispecialty tertiary care has been added by private sector corporate hospital chains in last decade,” mentioned Subodh Gupta, managing director and head – M&A at Edelweiss.
“While most of these new hospitals have been added in top five-six metros, our total bed capacity of one bed/1,000 (people) is still lower than global benchmark of three beds/1,000,” he mentioned.
Over the final 5 years, most non-public hospital chains noticed a moderation of their capital expenditure, which has now began enjoying out within the type of higher margins and return ratios, particularly after Covid, Gupta mentioned. Aaj Ka Samachar