IIFL PE fund to invest around ₹500 crore in Cauvery Hospital for minority stake

“IIFL is about to close the deal with Kaveri for minority stake. The deal will be announced in a few days,” said one of the two people, requesting anonymity.

“It is likely to be a mix of primary and secondary share sale, with hospital chain Lightrock’s existing investor (formerly known as LGT Lightstone Espada) selling part of its shares in the company. The primary part of the funds raised will be business will be used for expansion,” the person said. In September 2019, the Hospital series was picked up 140 crores from Lightrock.

The valuation of the hospital chain will go up with this deal. 3,000 crores, he said.

Spokespeople for IIFL Private Equity Fund and Kaveri Hospital declined to comment on the development.

In October, VC Circle The report states that Shree Kaveri Medical Care Pvt. Limited

Established in 1999, Kaveri Hospital has its presence in Tiruchirappalli, Chennai, Salem and Hosur in Tamil Nadu. It also has a center in Bangalore.

The combined installed bed capacity of the group stood at 1,284 as of June 30.

Company reported consolidated revenue 846.97 crore in FY22, growing from 597.22 crore in FY21, according to a report by credit rating agency Brickworks Rating.

Profit of hospital chain increased from 99.42 crores in FY22 58.89 crores in the previous year.

The rating agency raised the company’s credit rating by one notch to A+ citing continued improvement in financial performance for two consecutive financial years, FY21 and FY22, supported by improvement in operating metrics and similar growth momentum in H1FY23.

“The company’s operating income grew by ~38% on a standalone basis and ~42% on a consolidated basis in FY2012.

Improvement in scale of operations also resulted in improvement in profitability, gearing and debt protection metrics. Additionally, the company is focusing on inorganic growth and has recently acquired certain assets.

BWR also looks at such ongoing capex, most of which have either been completed or are expected to be completed in the current financial year, to enhance the scale of operations of the company and diversify the revenue stream in the near to medium term. For, “mentioned in the credit rating report.