New Delhi, Aug. 24 -- Bengaluru-based multi-speciality hospital chain Sagar Hospitals is exploring its maiden private equity fundraise and has appointed an investment bank to formalise the process, at least two people familiar with the development told VCCircle.

The hospital chain, which operates two major facilities in Jayanagar and Banashankari and has a network of more than 250 doctors and specialists, is looking to raise around Rs 300 crore ($31.3 million) by diluting a minority stake, the people said.

Mid-market investment bank Veda Corporate Advisors is believed to be helping the company scout for potential suitors.

An email query sent to Sagar Hospitals remained unanswered till the time of publishing this article. A spokesperson for Veda was also unavailable for comment.

Operations

Sagar Group entered the healthcare sector in the 1960s under the leadership of Chandramma D Sagar, who established Chandra Nursing Home.

Nearly four decades later, her sons, D Hemachandra Sagar and D Premachandra Sagar, expanded the group's healthcare footprint by launching a 250-bed multi-speciality tertiary care hospital in Bengaluru in 2002, followed by a 415-bed hospital in 2009.

Today, Sagar Hospitals offers services across departments, including cardiology, neurology, orthopaedics, gastroenterology, oncology, nephrology, urology, paediatrics, and organ transplantation. The hospitals provide 24x7 emergency care, intensive care services, ambulance support, and advanced diagnostic facilities.

Sagar Hospitals is also known for several clinical milestones, including Karnataka's first bone marrow transplant on an HIV patient and India's first laparoscopic radical prostatectomy.

PE interest in healthcare heats up

Private equity interest in India's hospital sector has risen in recent years, with global investment firms actively building healthcare platforms through acquisitions.

Most recently, US private equity firm KKR struck a deal to acquire the India hospital business of Swedish healthcare provider Medicover AB in a deal valued at €1.2 billion (around $1.4 billion, or Rs 13,190 crore), strengthening its push to build a larger hospital platform in the country.

KKR has been using Baby Memorial Hospital, in which it had bought a majority stake in 2024, as a vehicle to acquire more hospital chains in India. Earlier this year, Baby Memorial Hospital acquired Hyderabad-based Star Hospitals. Last year, it bought Kerala's Meitra Hospital and Tamil Nadu-based Naruvi Hospitals.

KKR also holds a controlling stake in HCG.

Meanwhile, General Atlantic, which created its own healthcare platform by acquiring Ujala Cygnus in 2024, is in talks to add capacity through acquisitions in North India, following its acquisition of Amandeep Hospitals in Punjab. The latest bet is a Ludhiana-based hospital.

Manipal Hospitals, which recently went public, is also backed by PE giants Temasek and TPG.

Published by HT Digital Content Services with permission from VC Circle.