UAE-based India-born businessman BR Shetty has expanded its India hospital empire with the acquisition of a 96% stake in Bhubaneswar’s Kalinga Hospital Ltd, a person close to the development said.
Shetty’s NMC Group, through affiliate BRS Ventures Two Pte. Ltd, will purchase Kalinga Hospital from its US-based holding company Hospital Corporation of Orissa, Inc for Rs 150-200 crore, the person said, asking not to be named.
The person said that NMC will acquire the stake in two tranches. It will buy a 55% stake in the first tranche and the remaining in the second tranche.
Separately, regional news website Orissa Daily said in a report that BRS Ventures will invest Rs 100 crore to construct a new hospital block and improve its infrastructure.
Shetty’s holding company is BRS Ventures Investment Ltd, which owns stakes in companies including NMC and BR Life. London-listed NMC has a strong presence in the UAE while BR Life operates multi-speciality healthcare facilities in India and Nepal. The hospitals under this platform include Sree Uthradom Thirunal Hospital in Trivandrum, SSNMC Hospital and Research Centre in Bengaluru, BRS Mother and Child Hospital in Udupi and Shree Narayana Hospital in Raipur, according to its website.
Incorporated in 1990, Bhubaneshwar-based Kalinga Hospital is a 250-bed super speciality hospital, according to its website.
The company’s net sales stood at Rs 82.76 crore and profit after tax was Rs 3.33 crore in the year through March 2016, according to VCCEdge, the data research platform of VCCircle.
DSK Legal acted as the legal adviser to Hospital Corporation of Orissa on this deal.
The hospital sector in India has recorded a number of transactions over the past year. Earlier today, the UK’s development finance institution CDC Group Plc said it invested $21 million (Rs 139 crore) in Blue Sapphire Healthcare Pvt. Ltd, which operates super-specialty hospital Asian Institute of Medical Sciences in Faridabad.
In July, Paras Healthcare Pvt. Ltd, which runs a chain of hospitals in North India under the Paras Hospitals brand, raised $42 million (Rs 275 crore) from South- and Southeast-Asia-focused private equity firm Creador Advisors India Pvt. Ltd.