PE backers set for partial exits in HealthCare Global's India IPO

According to a regulatory filing, the company will offer about 31 million shares, including a fresh issue of 11.6 million shares, constituting 36.9% of its post-offer paid-up equity. The price has yet to be set but the issue is expected to be worth $100-130 million.

The offering represents a partial exit for existing investors Premji Invest, India Build Out Fund and Singapore state-sponsored fund Temasek Holdings. The first two - which currently hold 21% and 17%, respectively - are looking to exit around half of their stakes. Temasek, which holds 16%, is set to sell a quarter of its holding.

Of the money raised from the fresh issue of shares, around INR529 million ($8.2 million) has been earmarked for the purchase of medical equipment, INR368 million for IT investment, and INR1.47 billion for prepayment of debt.

Set up in 1998, HCG offers speciality care focused on cancer and fertility, and claims to be the largest cancer treatment chain in the country. As of June this year the company had 15 cancer centers, four diagnostic centers and one day-care chemotherapy center. It also has 12 comprehensive cancer care centers nationwide under various stages of development.

In the 2014 and 2015 financial years, it claims to have registered 7,617 and 8,027 new patients, respectively. According to AVCJ research, HCG completed six rounds of funding between 2006 and 2013. Two GPs have already exited the company - IDFC Alternatives and India Life Sciences Fund.

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• Topics
• South Asia
• Exits
• Healthcare
• India
• Exit
• healthcare
• IPO
• Temasek Holdings