Parkway in race to co-invest $100 mn in Manipal Health

Parkway Group, the $900 million Singapore-based million healthcare major, is understood to be in the race to co-invest $100 million in Bangalore-based Manipal Health Systems.

According to industry information, Parkway is among the four being shortlisted by Manipal Health to raise this capital.

"In addition to Parkway, there is another strategic player besides two more private equity funds," a source close to Manipal Health said.

A spokesperson for Manipal Health could not be reached. Ranjan Pai, MD, Manipal Health had earlier said that they are raising $100 million and they are in talks with a few global funds and strategic players.

Manipal Health is raising the sum after nearly 18 months when it raised $20 million from IDFC Private Equity to expand its network. The Rs 250 crore Manipal Health Systems with this fresh round of investment will expand its presence in the Western and North Indian markets.

Manipal Health has been predominantly a South India-based health chain and with other healthcare group like Apollo expanding its presence pan-India, Manipal is also going the same way.

Incidentally, Parkway already has a joint venture with Hyderabad-based Apollo Hospitals for a hospital, Apollo Gleneagle, in Kolkatta.

Manipal Health is being advised by J M Financial and according to its officials, the group is targeting to align with strategic players who can add value to its offerings and strength them with global system and processes. Post this funding, Manipal Health is understood to have also lined up an IPO in the next two years.

In addition to spreading its presence pan-India, Manipal on an immediate basis is expanding its flagship hospital in Bangalore by adding 300 more beds and to build a 400-bed hospital towards the upcoming Bangalore International Airport.

Together with Manipal University, a part of Manipal Group, Manipal Health offers Tertiary, Secondary and Primary healthcare delivery services from 17 hospitals, nine Primary Care Clinics and 55 Community health programmes, with over 7,000 beds and 5,000 doctors on its rolls. Manipal Health is targetting a topline of Rs 320 crore during the current fiscal.