Kauvery Hospitals’ Promoters in Advanced Talks to Repurchase 5% Stake from Lightrock

The talks value the multispecialty hospital chain at about ₹5,000 crore as it accelerates its preparation for a public listing expected within the next two years.

Promoters of Sri Kauvery Medical Care (India) (Kauvery Hospitals) are in advanced discussions to buy back around 5% stake from existing investor Lightrock, according to people familiar with the matter.

The talks value the multispecialty hospital chain at about ₹5,000 crore as it accelerates its preparation for a public listing expected within the next two years.

The repurchase move comes as the group positions itself for an IPO at a targeted valuation exceeding $1 billion. The proposed valuation reflects a nearly 50% increase from the company’s last funding round in 2023, when IIFL AMC, part of 360 ONE, invested close to $70 million at a valuation of ₹3,400 crore.

Promoters currently hold 47% in the company, while the remaining equity is distributed among 360 ONE, GSK Velu, and London-based Lightrock. Lightrock—formerly LGT Lightstone Aspada—invested approximately ₹140 crore in Kauvery Hospitals in 2019 and owns about 11% of the company.

People aware of the ongoing discussions said Lightrock has held bilateral talks with multiple potential buyers and received several interest proposals. “The promoters are prepared to match the highest bid and take back the stake,” one of the persons said, indicating that the final contours of the deal will depend on the pricing outcomes of these competing offers.

Kauvery Hospitals operates 12 hospitals across Tamil Nadu and other regions, with a combined capacity of 2,355 beds. The group is pursuing an expansion strategy, planning to add around 1,000 beds between FY25 and FY27. This growth will be supported by a capital expenditure outlay of ₹580 crore, aimed at strengthening the network’s reach and scale ahead of the planned listing.

Lightrock declined to comment on the ongoing stake discussions. Queries sent to Dr. Manivannan, founder and managing director of Kauvery Hospitals, remained unanswered.

The buyback talks signal the promoters’ intention to consolidate their position as the hospital group enters a crucial growth phase. Final agreements will depend on the conclusion of negotiations between Lightrock, the promoters, and other interested investors.

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