AIMS Hospital Founder Plans INR 500-Cr Buyback of PE Investors’ 49% Stake

Pandey is in discussions with the credit arms of Avendus, KKR, and Kotak, among others, to raise about INR 500 crore to finance the proposed buyout.

Narendra Pandey, founder of the Asian Institute of Medical Sciences (AIMS) in Faridabad, is planning to buy back the 49% stake held by private equity investors British International Investment (BII) and Orbimed, according to people aware of the development.

Pandey is in discussions with the credit arms of Avendus, KKR, and Kotak, among others, to raise about INR 500 crore to finance the proposed buyout. Alvarez and Marsal are said to be advising him on the fund-raising process.

BII and Orbimed had earlier invested in Blue Sapphire Healthcare, the holding company of AIMS, a 450-bed hospital established 15 years ago by Pandey, a Padma Shri awardee and thoracic surgeon.

AIMS is estimated to be valued at around INR 1,000–1,200 crore, according to people cited. Pandey, BII, and Orbimed did not respond to queries, while Avendus, Kotak, and KKR declined to comment.

The healthcare delivery sector has seen increased deal activity and aggressive valuations, with standalone hospitals and smaller chains often valued at 25–30 times their earnings. “In this scenario, the founder of AIMS wants to hold on to the company,” one of the people cited said.

Earlier this year, Manipal Hospitals acquired Maharashtra-based Sahyadri Hospitals for INR 6,400 crore. More recently, KKR paid about INR 2,000 crore to acquire Kerala-based Baby Memorial Hospital.

Last year, BII and Orbimed attempted to exit their AIMS investment through a secondary sale to other private equity firms. However, the plan did not progress as expected due to concerns over high valuation expectations, sources said.

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