AIG Hospitals Attracts Global Investor Interest in Potential INR 2,000-2,500 Cr Deal

The proposed transaction would involve a transfer of EQT’s existing investment in the hospital chain.

Novo Holdings, Singapore’s sovereign wealth fund GIC, and Abu Dhabi-based investment firm Axight are in advanced discussions with private equity firm EQT to invest INR 2,000-2,500 crore in Hyderabad-based AIG Hospitals.

The proposed transaction would involve a potential transfer of EQT’s existing investment in the hospital chain.

As per recent reports, the proposed stake sale is being led by AIG Hospitals’ two promoters, including Chairman and Managing Director Dr Duvvur Nageshwar Reddy and Vice Chairman Penmetsa Venkata Subbaraju.

The plan involves a potential 10-12% dilution of their shareholding at a reported company valuation of INR 22,000-24,000 crore.

The transaction remains under discussion and has not been confirmed by the parties involved.

The Swedish investment group EQT is planning a fund-to-fund transfer of its four-year-old investment in AIG Hospitals

EQT’s investment in AIG Hospitals dates to 2022, when Baring Private Equity Asia acquired a stake of nearly 40% for an estimated USD 300–350 million, buying out earlier investor Quadria Capital.

Baring Private Equity Asia subsequently combined with EQT in October 2022. The remaining stake is held by the two founders, according to the report.

Founded in 1994 by Dr Nageshwar Reddy in Hyderabad as the Asian Institute of Gastroenterology, AIG Hospitals provides services across more than 40 medical specialities.

The hospital chain currently operates three units in Hyderabad, with more than 1,400 beds, including over 350 intensive care unit beds.

The hospital group is also planning to expand its presence in Andhra Pradesh.

The latest development comes amid the hospital chain’s recent announcement to invest INR 2,000 Cr to build a 1,000-bed greenfield multispeciality hospital in Endada, Visakhapatnam.

The proposed greenfield project will be developed in two phases over five years, with the first 650 beds expected to become operational by October 2028.

Categories: Medi

Stay tuned for more such updates on Digital Health News