J P Morgan, the global financial powerhouse, may be looking at an exit from the Bangalore-based Narayana Hrudayalaya, once the lock-in period gets over by February 2011.
The private equity arm of J P Morgan had invested Rs 200 crore during February 2008. Another global financial behemoth AIG had also invested another Rs 200 crore during the same period.
The two investors together hold 25 per cent in the cardiac care specialty hospital chain which is embarking on an expansion plan to roll out health cities across major cities in India with each of the units having around 5,000 beds.
While J P Morgan could not be reached for comments, senior officials of Narayana Hrudayalaya denied any such move by the investors and said that no such discussion has been held with them. However, investment bankers close to J P Morgan said that the fund has had preliminary discussions on an exit.
Investment bankers further add that J P Morgan and AIG had come in at pretty stiff valuation of Rs 1,600 crore and may find it a little difficult to exit on top of that valuation. Investment bankers further J P Morgan may also explore bringing in a strategic investor for Narayana Hrudayalaya in an effort to exit this investment.
Management officials at Narayana Hrudayalaya however denied that there any move to rope in a strategic investor.
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Even as J P Morgan is understood to be eyeing an exit from Narayana Hrudayalaya, the cardiac care chain is building up beds at Hyderabad, starting work at Jaipur in addition to expanding its presence in Bangalore.
The first health city in Bangalore caters to diverse specialiies including cardiac, cancer, orthopaedics, eye care, neurology, and child and women care.
The chain started by noted cardiac surgeon Dr Devi Shetty has been offered 37 acres in Ahmedabad by the Gujarat government and 25 acres by a private builder in Delhi. It is ramping up its Kolkata facility with a 25-acre campus with 5,000 additional beds.