New Delhi, Sept. 17 -- Global private equity firm Advent International has agreed to invest in North India-focussed multi-specialty hospital chain Yatharth Hospital and Trauma Care Services Ltd for a significant minority stake.
The Boston, Massachusetts-headquartered PE firm will invest Rs 3,150 crore (around $328 million) of primary capital in the Mumbai-listed hospital operator for a 24.9% stake, according to an announcement.
Advent, through its Cyprus-based entity Rasmalai Ltd, will purchase Yatharth Hospital's stake through a preferential issue at Rs 985.17 per share. Shares of the hospital chain rose more than 8% on Thursday to Rs 1,065.6, according to stock exchange data.
Following the deal, the promoter Tyagi family will remain Yatharth Hospital's largest shareholder.
"Beyond capital, Advent brings deep healthcare expertise, global insights, and a strong value-creation mindset that will, we believe, help accelerate our next phase of growth," said Yatharth Tyagi, whole-time director of Yatharth Hospital. "Together, we aim to expand our reach, strengthen our capabilities, and build one of India's leading healthcare networks while remaining committed to delivering high-quality outcomes for patients," he added.
Founded in 2008, Yatharth Hospital operates nine multi-speciality hospitals with around 2,800 beds and an overall announced capacity of roughly 3,250 beds. The company has expanded its footprint through a combination of organic and inorganic growth.
Its growth strategy is driven by a cluster-based expansion model focussed on strengthening its presence and scaling operations in existing geographies, including the National Capital Region (NCR) and Gurugram, while selectively expanding into adjacent regions.
A year ago, the company acquired Agra-based healthcare provider Shantived Hospital for an enterprise value of Rs 260 crore ($29.5 million then) in an all-cash deal to expand its operations in North India.
According to its annual report, Yatharth Hospital plans to expand its bed capacity to 5,000 in the next three years. It has also unveiled newer facilities in New Delhi, Faridabad and Agra, and has an upcoming facility in Gurugram.
For Advent International, this is the latest healthcare deal in India. Its recent healthcare investments in the country include Apollo 24/7, Cohance, Felix Pharma, Bharat Serums and Vaccines, and Care Hospitals.
Published by HT Digital Content Services with permission from VC Circle.