Each of Orbimed, as well as CDC Group, has an extensive healthcare portfolio in India. They both invested in AIMS in 2014 and 2018, respectively.
Healthcare-focused US Private equity firm Orbimed and the UK’s financial institution for development CDC Group Plc are looking to leave north India-focused super-specialty hospitals chain Asian Institute of Medical Sciences (AIMS), which is owned through Blue Sapphire Healthcare Private Ltd. Multiple industry sources who are aware of the issue informed Moneycontrol.
“Both these investors are eyeing an exit and a significant minority stake will be on the block as part of the proposed transaction,” one of the investors who was mentioned above.
Orbimed And CDC together have around 47-48 percent of this hospital chain. The rest of the stake is owned by the promoter group, led by its founder Dr. NR Pandey.
A third person added that should the promoter group decide to sell stakes, then the possibility of divestment of the majority stake is likely to be considered. A final decision will be made in light of estimates.
“Currently, it is planned to begin the process in May. If the majority stake is available and a strategic company based either in the southern regions or west could be interested in investigating this opportunity since the assets are located in the north. Compared to the other areas, “it’s often that a property in the North is available for sale,” a third person informed Moneycontrol.
A fourth party also said that they had confirmed exit plans by two investors and said it was difficult to operate within the markets where AIMS operates.
A fifth person familiar with the AIMS hospital chain stated, “The team has been successful in navigating a difficult market for price and engagement with doctors and has the business method perfect. The branding and return rates are good.”
Five of the above spoke with Moneycontrol because they remain anonymous.
Email questions (along with numerous reminders) addressed at AIMS and Orbimed were not answered when writing this report. When asked by email, AIMS and Orbimed CDC Group “declined to comment on market speculation.”
AIMS is indeed present in Delhi/NCR UP, Jharkhand, and Bihar and has a bed count of approximately 1,300. The principal branch is in Faridabad and is home to more than 442 beds.
Based on its LinkedIn page, the hospital chain has modern services for Cardiology, Oncology, Orthopedics, General Surgery, Nephrology Endocrinology, Gastroenterology, General Medicine, Gynaecology Pediatrics, Laboratory Medicine Neurology, Ophthalmology, Respiratory Medicine, Urology, among other specialties.
According to reports published in 2014, Orbimed invested about 100 crores in AIMS. Four years after, CDC Group Plc pumped into the region of Rs 140 crore in the second round of financing.
According to the AIMS website, AIMS offers more than 24 specialty services spread across 10 locations. It boasts 1,100 doctors as well as 4500 staff members who are trained.
Each of Orbimed, as well as CDC Group, has an extensive medical portfolio that spans India. The former’s company includes Netmeds, Marksans Pharma, IV maker Eurolife Healthcare, East India-based Suraksha Diagnostics, and Laxmi Dental (dental laboratory equipment manufacturer).
However, CDC Group has bet on companies like Dr. Agarwal’s Health Care, Sequent Scientific, Vikram Hospitals, Shilpa Medicare, Super Religare Labs, and Krsnaa Diagnostics.
Hospital M&A with a touch of health and happiness!
The healthcare and hospital area has been abuzz with deals as the economy slowly recovers from the negative impact of Covid-19.
“Given generics experiencing a recession, the money is moving towards domestic consumption, which means that capital is flowing towards domestic brand products such as health tech diagnostics and hospital-related services. This has led to higher valuations for these industries. Thus, funds that were holding investments in hospitals in recent years are now looking to sell,” says Nitin Lath, the Managing Director of Torreya India.
A senior industry executive agreed and noted that attractive multiples resulted in promotions and PE exits.
A third expert closely monitoring the healthcare sector said, “Covid — 19 is the most significant factor that delayed CAPEX and investing cycles. In addition, performance was around the mark with a lot of swings, but it has stabilized and permitting the accounting DD to be more logical.” This expert was speaking on confidentiality of the.
On the 15th of March, Moneycontrol reported that just three years after acquiring an ownership share in the Pune-based Sahyadri Hospitals, private equity firm Everstone Group had revived plans to leave the company, which is the most prestigious hospitals chain operating in Maharashtra.
On the following date, Moneycontrol announced that Manipal Hospitals’ promoters Manipal Hospitals were engaged in discussions to purchase an of the stake from investor TPG before a future IPO.
Moneycontrol also broke the story that Barings PE Asia was emerging as the top contender to buy the majority share of AIG Hospitals.
In Jan., Moneycontrol was the very first company to reveal that TPGwas backed by Evercare and was considering a sale of its Hyderabad Care Hospitals based in Hyderabad.
In June 2024, Manipal Hospitals acquired Bengaluru-based Vikram Hospitals for Rs 350 crore. In the following calendar year, Temasek platform Sheares Healthcare purchased the Kolkata-based Medica Synergie, a multi-specialty hospital.
