KKR Invests an Additional INR 1,750 Cr in Kerala’s Baby Memorial Hospital to Drive Acquisition-Led Expansion

The latest capital made through a right issue brings KKR’s total investment in BMH to over INR 5,100 crore since its initial acquisition in July 2024.

US-based private equity firm KKR has invested INR 1,750 crore in Kerala-based Baby Memorial Hospital, aimed at strengthening the hospital chain’s acquisition strategy and regional expansion

The latest capital made through a right issue brings KKR’s total investment in BMH to over INR 5,100 crore since its initial acquisition in July 2024.

Following the latest investment, KKR’s ownership in the hospital has increased to aproximately 75%. The funding is expected to support BMH’s expansion through both organic growth and acquisitions.

KKR's investment strategy with BMH mirrors its earlier approach with Max Healthcare and Radiant Life Care, where it facilitated consolidation and scale before exiting at significant returns.

The current plan includes expanding existing facilities, including the development of a new hospital in Chennai, and actively pursuing acquisitions of other hospital assets.

KKR initially invested around INR 2,100 crore in Baby Memorial Hospital in July 2024 to build a network of hospitals in southern India.

It subsequently increased its investment by INR 1,261 crore in the hospital in September last year, before the current investment.

As part of its expansion strategy, BMH recently acquired 60% stake in Hyderabad-based Star Hospitals for INR 1,800 crore, taking the total valuation of the hospital to INR 3,000 crore.

The latest acquisition follows BMH’S earlier acquisition of the Kerala-based Meitra Hospital in September last year.

Currently, BMH operates a network of nine hospitals across Kerala, Tamil Nadu, and Telangana, with a total bed capacity of approximately 3,000.

As per reports, the combined entity is expected to generate INR 2,500 crore in revenue this financial year.

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