Bangalore: To fund its expansion plans, Manipal Hospital is to raise almost a $100 Million India Value Fund Advisor (IVFA) by offering minority stakes. The group is planning to use the fund to upgrade the current facilities and technology used in the Hospitals and is eyeing on increasing the bed capacities of the Bangalore, Mangalore and Goa centers.
Manipal Hospitals led by Ranjan Pai had raised about $20 Million from Kotak Private Equity Group earlier in 2010. By 2014, the group wants to establish Greenfield multi-specialty hospitals in Pune, Hyderabad and Bhubaneshwar.
IVFA, which has been actively participating in deals happening in the health sector, was planning to acquire the Ahmedabad based Sterling Hospitals. The group that already holds stakes in Dubai based DM Healthcare may support Manipal to perform acquisitions in an industry where many small and independent hospitals are open to deals. Manipal has over 4,400 beds across 17 hospitals and serviced 1.8 million patients last year.
“Manipal may fetch about $280 Million valuations, giving the new investor a fairly large minority stake. They are in active discussions with three funds, including IVFA and an agreement may be reached soon. The initial deal may fall anywhere between $50 Million and $100 Million,” reported Times of India.