General Atlantic invests $130m in Indian hospital operator

The investment includes both primary capital and a secondary stake sale, according to a release, and will give General Atlantic a significant minority stake in the company. The investor or investors that will exit to General Atlantic have not been identified. KIMS will use the new capital to expand into underserved geographies in India.

KIMS filed for its IPO last year, comprising a fresh issue of shares worth INR500 million ($7.75 million) and 19 million shares held by existing investors, including 15 million shares from ICICI Venture. The offering received regulatory approval in March but a date for the issue has yet to be set.

KIMS operates a network of seven multi-specialty hospitals in Andhra Pradesh and Telangana with a capacity of over 2,500 beds, aimed at providing comprehensive treatment for complex and chronic diseases. The company was founded in 1973 as Jagjit Singh & Sons and operated as a family-owned business until a management buyout in 2003 led by the current CEO Bhaskar Rao. The new name was adopted the following year after a reorganization.

According to its prospectus, KIMS’ revenue for the year ended March 2017 came to INR5.4 billion, up from INR4.9 billion the previous year. Net profit for the same period grew from INR243 million to INR325 million.

“The combination of an acute shortage in quality healthcare infrastructure and a strong focus from the government to make quality healthcare more accessible has created compelling secular tailwinds to drive growth for high-quality corporate hospital networks. We believe KIMS is uniquely positioned to benefit from these trends,” said Sandeep Naik, managing director and head of India and Asia Pacific at General Atlantic.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Healthcare
• Expansion
• Secondaries
• India
• General Atlantic
• Growth capital