Ambit Pragma bought founder’s stake in Beams Hospitals; firm eyes fresh funding
Mumbai-based PE player Ambit Pragma, which picked up a majority stake in Beams Hospitals Pvt Ltd in 2009, has acquired founder Dr Rakesh Sinha’s holding to complete the buyout. The small healthcare firm is now eyeing fresh capital infusion to finance its organic expansion plan, a top company executive told VCCircle.
Beams Hospitals was founded by Sinha with a single hospital in Mumbai in 1995. In 2009, Ambit Pragma invested $10 million in the company to pick up close to 90 per cent stake. The founder was left with around 10 per cent stake in the firm which was acquired by the PE firm for an undisclosed amount earlier this year.
Beams Hospitals now plans to raise $6 million (Rs 40 crore) in six months to expand its presence in high-growth cities in the country.
“In two years, we are planning to add three more hospitals to our portfolio. For our expansion, we are looking at high-growth geographical areas like Delhi, Chennai, Chandigarh, Pune and Ahmedabad. We will invest $10 million for our expansion in two years for which we will raise $6 million in six months,” Niraj Manglam, president and CEO of the company, said.
Currently, the company operates four hospitals in Mumbai, Hyderabad, Bangalore and Amritsar.
According to Manglam, the parting of ways with the founder happened since the founder's vision did not match company's growth plans. Beams Hospitals focuses on laparoscopy surgeries in segments including gynaecology, urology and ENT and has recently also started doing cosmetic surgeries.
“Dr Rakesh Sinha’s focus was gynaecology and he wanted the company to focus on that but it did not meet our growth plan for the future. Only concentrating on gynaecology for expansion would have higher risk and the growth would have been limited,” Manglam said.
After the company and founder parted ways, Beams Hospitals shut down its Mumbai hospital and has found a new location in the city to start it again.
“We have acquired a hospital in a new location on long-term lease in Mumbai. We are going to invest around Rs 12 crore for this hospital. We will make sure that we break even within six months of opening,” Manglam said.
The size of this hospital and other hospitals of the company is between 20-25 beds. According to Manglam, the three new hospitals will be similar in size.
(Edited by Joby Puthuparampil Johnson)