New Delhi, Aug. 14 -- Global investment platform Lightrock has scored a partial exit from a healthcare portfolio that it backed almost seven years ago.

Lightrock, formerly known as LGT Lightstone Aspada and which recently exited the IPO-bound logistics player Shiprocket Ltd with a loss, has partially sold its stake in the south Indian hospital chain operator Sri Kauvery Medical Care (India) Ltd, which owns the Kauvery Hospital brand.

The London-headquartered private equity platform said it sold a portion of its stake in Kauvery Hospital via Lightrock Growth Fund I to the company's promoters in a share buyback. This fund closed with $900 million in commitments in 2021.

While the transaction terms weren't disclosed, media reports suggest the hospital chain was likely valued at Rs 5,000 crore (around $524 million) in the proposed transaction. The promoters of Kauvery Hospitals sought to buy back a 5% stake from Lightrock.

It currently holds around 11% of the company's stake. At the reported valuation of Rs 5,000 crore, Lightrock's stake in the company would be worth around Rs 550 crore (around $58 million).

Lightrock first backed the hospital chain in August 2019 by investing Rs 140 crore in Kauvery Hospital in Tamil Nadu, as the hospital operator sought to expand its footprint and strengthen its clinical capabilities. Kauvery's other major shareholders include GSK Velu and 360 One.

The company is reportedly planning an initial public offering likely next year. It is also targeting an increase in its bed capacity to 5,000 and entry into newer geographies.

"Kauvery is now among the leading healthcare platforms in South India, and the next phase is already underway: 5,000 beds and new cities, built to the clinical rigour that has defined us," said S. Chandrakumar, founder and executive chairman of Kauvery Hospital.

Set up in 1999, Kauvery is a multi-speciality hospital chain with more than 12,000 staff, 13 facilities, and more than 2,500 beds across 6 cities in Tamil Nadu and Karnataka.

For FY25, the company's revenue jumped over 39% to Rs 1,918 crore with a net profit of Rs 51 crore, according to PrivateCircle data. Its operating margin improved to 17.85% in FY25 from 15.18% the previous year.

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