Narayana Health raises $27.5M anchor investment from GIC, others

Narayana Hrudayalaya Pvt Ltd, which operates a chain of multi- and super-specialty hospitals in the country under the brand name of Narayana Health (formerly Narayana Hrudayalaya), has raised Rs 184 crore ($27.5 million) from a group of anchor investors, including Singapore's sovereign wealth fund GIC.

Other investors who participated included investment units under Fidelity, Morgan Stanley besides several domestic mutual funds.

GIC invested around Rs 12.2 crore of the total, as per a disclosure.

The firm is slated to open its initial public offer (IPO) on December 17, becoming the third-largest hospital chain to go public.

Currently there are two large public listed hospital chains: Apollo Hospitals Enterprise and Fortis Healthcare. Max Hospital, which is currently housed under Max India, is being demerged into a separate firm as part of a corporate restructuring in which it would be listed as a healthcare and health insurance company.

Last month, oncology chain HCG received green signal for its proposed IPO.

Narayana Health has fixed a price band of Rs 245-250 for the IPO that would peg the issue size at up to Rs 613 crore ($91 million). The firm is looking to divest 12 per cent stake in the IPO that would value it at around Rs 5,110 crore.

The anchor investors picked the shares at the upper end of the price band.

The issue entirely comprises an offer for sale where its promoters would get around Rs 100 crore and the rest would go to the two PE investors—Pinebridge (formerly AIG Capital) and JPMorgan Partners. Interestingly, JPMorgan Partners has raised the quantum of shares it proposes to sell in the IPO.

Initially it was looking to sell 8.1 million shares but has now offered to offload 12.2 million shares.

Founded in 2000 with two hospitals, the company has a network of 23 hospitals, eight heart centres and 24 primary care facilities across 31 cities and towns with 5,442 operational beds.

Axis Capital, IDFC Securities and Jefferies India are the book running lead managers to the offer.

For more on the IPO, click here.

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