Ajay Piramal Group-promoted India Venture Advisors (IVA) has acquired stake in Andhra Pradesh-based Dr. Ramesh Cardiac & Multispecialty Hospital Pvt Ltd (DRCMH) through subscription of equity shares. However, the deal value has not been disclosed.
According to a report in Hindu Business Line, IVA has picked up stake in DRCMH’s upcoming 350-bed multispecialty hospital in Guntur. Currently, the company runs two tertiary care hospitals in Vijayawada and a satellite centre in Eluru with a total bed capacity of 250. It is planning to increase the bed capacity to 1,000 over the next three years through acquisitions of small hospitals/clinics in tier II and III cities.
Nishith Desai Associates acted as the legal advisor to IVT for this transaction.
India Venture Advisors was founded in 2007 by Ajay Piramal, chairman of the Piramal Group, and AK Purwar, former chairman of State Bank of India. The fund mainly invests in healthcare and pharma segments.
The fund recently invested an undisclosed sum in Global Baroda Hospital, a multispecialty chain. Other healthcare investments of IVA include Harmony Medicare, MedPlus Health Services and Sri Kavery Medical Care, among others.
Indian healthcare sector has seen some big-ticket investments, especially in multispecialty hospital segment. Some of the big deals in this space include Manipal Health Enterprises raising $180 million from India Value Fund, Narayana Hrudayalaya securing $100 million from JPMorgan and Pine Bridge Capital, and Moolchand Healthcare raising $20.17 million from Sequoia Capital.
(Edited by Sanghamitra Mandal)