Gurgaon-based hospital chain Paras Hospitals is eyeing Rs 100-crore private equity investment in the group by diluting about 15-20% stake to meet its expansion plans. The hospital chain plans a capacity of 1,000 beds by 2013-2014 from its current bed-strength of 280.
The chain has two hospitals in Gurgaon and South Delhi. It will invest Rs 150-200 crore in adding 300 beds by setting up a new hospital, to be operational by 2012, in the NCR region.
The Rs 100-crore Paras Hospital is expecting a turnover of Rs 300 crore by 2012.
Paras Hospital is also learnt to be in talks with multiple hospitals in Madhya Pradesh, Rajasthan, Punjab and Uttar Pradesh. It is likely to acquire multiple hospitals with an overall bed capacity of 400. At the same time, it also explores another opportunity for a 300-bed greenfield facility in Punjab.
Speaking to VCCircle, Dr. Dharminder Nagar, Promoter and Managing Director, Paras Hospials, said, “We can manage the 300-bed facility expansion with our internal cash. However, for further expansion, we are looking for outside funding, preferably a private equity investment. As we have outlined our future plans, the talks with PE players are expected to begin shortly and we are ready to dilute stake up to 20%.” He is also the director of Paras Group of Industries (Paras Dairy, Paras Buildtech and Paras Natural).
According to VCCircle's earlier reports, Hyderabad-based hospital Krishna Institute of Medical Sciences (KIMS) was eyeing a second round of private equity funding in the range of Rs 100 crore to meet its expansion plans targeting a 1,000-bed capacity. VCCircle also reported plans of Gujarat-based Sterling Hospitals, backed by private equity major Actis, to invest Rs 100 crore to expand its capacity to 1,000 beds by March 2011.
Spring Healthcare Pvt. Ltd., the Rs 300-crore wholly owned subsidiary of Sabre Capital, is close to investing about Rs 100 crore in two hospital groups, and likely to acquire stake in the range of 26-40% in each group, according to an earlier VCCircle report.
In 2010, about eight PE/VC deals have taken place till date with an overall investment of $277 million. In contrast, 2009 witnessed about four deals with an overall investment of $176 million in healthcare service space with the highest investment being Goldman Sachs in Max India.