Max Healthcare Institute Ltd (MHIL), a New Delhi-based hospital chain, is raising equity investment of about $25 million from International Finance Corporation (IFC), the private investment arm of the World Bank, VCCircle has learnt.
The fund-raising is part of the company's plan to set up two new hospitals in Punjab. It has earmarked a total expenditure of $50 million (around Rs 220 crore) of which IFC is planning to invest around $25 million (about Rs 110 crore) in a quasi-equity investment.
For IFC, this transaction would follow its earlier investment of an undisclosed sum in Max Healthcare in 2007. Max Healthcare has also raised equity funding of $31.99 million from private equity firm Warburg Pincus India Pvt Ltd in two separate tranches in 2004 and 2005.
The two new hospitals will be set up at Mohali and Bathinda in Chandigarh, VCCircle has learnt. Max Healthcare is the unit of listed firm Max India Ltd, a multi-business company with interests in life insurance, healthcare, clinical research, specialty plastics and health staffing.
The majority of MHIL shareholding is with the holding company Max India Ltd, of which Analjit Singh is the founder and chairman. Max India owns 70% of MHIL, while the balance stakes are with Warburg Pincus and IFC. Warburg and IFC own 20% and 10% stake in MHIL, respectively.
MHIL currently operates six hospitals and two med centers primarily in the north India, with a total of 1,090 beds. Each of the two new hospitals will initially have 200 beds and will focus on oncology, with additional specialization of trauma care at Mohali and cardiac care at Bathinda.
Besides expanding the hospital chain in smaller and under-served cities in India, Singh is also scouting opportunities to set up medical institutions for research and development in the healthcare space. According to a recent Business Standard report, Singh is in talks with four foreign universities to set up a medical college in the country.
