This move by Manipal Hospitals comes barely a few months after it got a commitment to raise close to Rs 1,000 crore from private equity fund - India Value Fund Advisors, through which Manipal Hospitals looks to more than double its bed strength to 4,000 from close to 2,000 beds, over a three-year period.
As part of that transaction, Manipal Hospitals is said to have drawn down Rs 200 crore in the recent past for expansion and its recent acquisition of a hospital in Malaysia as well.
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As part of its expansion plans, Manipal Hospitals is looking at having presence in Indore, Jaipur, Bhubaneshwar and Pune, besides bolstering its existing units across 15 hospitals.
According to two investment bankers aware of the fresh transaction, Manipal Hospitals is close to signing up with a investor who will own the land as well the structure, while Manipal Hospitals will run the operations.
"Over a period of time, a clause may be added in which Manipal Hospitals will have a right to acquire the asset as well," a senior banker told Business Standard.
Manipal Group during early 2010 had structured its hospital business into an assets-company and a pure-play healthcare services division.
Manipal Healthcare, post that had tried to raise substantial resources at the assets company, which was put on hold later.
Manipal Hospitals had earlier raised private equity from Kotak Group, IDFC Private Equity and Capital International.
The aspect of private equity funds flocking to the healthcare space in India has been on a strong upswing over the last few quarters and along with life sciences sector, it has shown a 66 per cent growth in value quarter over quarter.
According to data from PwC, it rose from $130 million across 12 deals to $215 million across 11 deals.
However, when compared to Q2 '12, the value and volume of deals have fallen by 12 and 15 per cent, respectively.
This segment was among the top three sectors during the end of third quarter of 2013 as it attracted investments of $140 million across 14 deals.
Technology sector was the biggest grosser at $582 million across 25 investments, followed by Manufacturing at $185 million across nine investments.