PE-backed oncology chain HCG gets SEBI nod for IPO

HealthCare Global Enterprises Ltd (HCG), one of the largest cancer treatment hospital chains in the country, has received approval from capital markets regulator Securities and Exchange Board of India to float its initial public offering (IPO).

The Bangalore-based company joins around a dozen firms that are waiting in the wings to float public issues, having received a green signal from SEBI.

Although the company has yet to freeze a price band, the proposed IPO is expected to be worth around $100-130 million (Rs 640-840 crore), as per VCCircle estimates based on what it intends to raise through a fresh issue of shares.

Bulk of the money would go to selling shareholders including three of its private equity investors: PremjiInvest, the private investment arm of Wipro promoter Azim Premji; India Build Out Fund and Temasek, a state-owned investment arm of the Singapore government.

The offer would include 36.8 per cent of post-offer paid-up equity share capital and may value the firm around Rs 2,275 crore ($356 million).

VCCircle first reported in January that HCG had picked two bankers for its IPO and was looking to hire more merchant bankers to handle the issue.

HCG would become the fourth significant listed hospital chain in the country behind Apollo Hospitals Enterprise Ltd, Fortis Healthcare Ltd and Max Hospital, which is being spun off from its listed parent Max India Ltd.

A bunch of other hospital firms are also eyeing a public float in the near future including Narayana Health and Aster DM Healthcare.

For more details on the company and its proposed issue, click here.

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