Oncology chain HealthCare Global Enterprises Ltd (HCG) has bought an additional 60.9% stake in Suchirayu Health Care Solutions Ltd (HCG) to become the majority owner, the company said in a statement.
This purchase has hiked the company’s stake in Suchirayu Health from 17.7% to 78.6%. The financial details of the transaction were not revealed.
HCG first acquired stake in Suchirayu Health in 2017. A multi-specialty hospital in Karnataka's Hubli, Suchirayu Health was struggling financially then.
BS Ajaikumar, Executive Chairman of HCG, said in the latest disclosure that acquiring a majority in Suchirayu Health was a logical step in cementing its presence in the Hubli region. "We continue to explore opportunities in the regional cancer leaders’ space to further consolidate our dominant position," he added.
Raj Gore, CEO of HCG, said Suchirayu Health has been able to more than double its revenue and improve earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins to over 20% from a single-digit margin since the time the company picked the minority stake.
Founded in 1998, HCG provides healthcare in India, focused on cancer and fertility under the brand Milann.
HCG listed on stock exchanges in 2016. Prior to its initial public offering (IPO), it roped in a string of private equity (PE) firms over the years. Before listing, it gave exits to two of them -- IDFC Alternatives and India Life Sciences Fund.
Other investors - PremjiInvest, India Build Out Fund (now under Quadria Capital) and Temasek, offered to sell part of their shares in the IPO. World Bank’s International Finance Corp. (IFC) and Sabre Partners had come in as anchors for the primary issue.
In May last year, PE firm CVC Capital Partners said it will buy 36% stake in HCG, and made a mandatory open offer to buy an additional 26% from public shareholders.
