Tamil Nadu-based hospital chain Vasan Healthcare Private Ltd, which runs Vasan Eye Care Hospitals, would go for an initial public offering (IPO) next year to raise around Rs 1,000 crore.
According to Dr A M Arun, chairman, Vasan Healthcare, the company would make the offer by mid-2011. “We are planning to raise around Rs 800-1,000 crore,” he said, but declined to comment on the proposed dilution.
The proposed IPO is expected to support the company’s capital expenditure of Rs 450 crore planned for the next 18 months. The expansion would include adding 50 new eye care centres to its current strength of 75.
“Before IPO, we will also enter new areas including ophthalmology, gastroenterology, diabetic, dental and skin care and others,” Arun said.
The company plans to open 50 dental care centres and 10 skin care centres in India and abroad as part of the expansion, which would be funded through internal accruals and partly by debt.
It may be noted that Sequoia Capital has, in three different transactions, already put Rs 250 crore in the hospital chain.
“We will start operations in Africa this month with dental and eye care,” said Arun. The company currently operates in Sri Lanka and United Arab Emirates.
The group, started in 1947, runs two multi-specialty hospitals and three future facilities; 40 pharmacy outlets and 15 diagnostic centres in Tamil Nadu.
Last year the group reported a turnover of Rs 250 crore and has set a target of Rs 500 crore for 2011 and Rs 1,000 crore for 2012, said Arun.
