Healthcare Global to raise Rs 50 cr via PE route

Healthcare Global Enterprises, the Bangalore-based cancer care provider, is close to raising $10 million (around Rs 50 crore) from Milestone Capital, a India-focussed private equity fund.

Healthcare Global has so far raised close to Rs 150 crore by divesting just under 50 per cent through three rounds of funding from IDFC Private Equity, Premji Invest and Evolvence India Life Sciences Fund. The promoters led by chairman and CEO B S Ajai Kumar hold 32 per cent, while the rest is held by a few other individuals and corporates.

According to industry information, Healthcare Global is raising fresh funds to expand its presence in Kolkata and Bangladesh and eventually looks to add 12 more centres over a period of 18 months. Healthcare Global presently has 16 centres through its network of hub and spoke model. The company owns three hospitals in Bangalore, Vijayawada and Ahmedabad while the Delhi centre is on a long lease.Senior officials from Healthcare Global confirmed that they are raising funds and are in closing stages of discussions with Milestone Capital. But, Milestone Capital offered not to comment on the deal.

Industry sources close to the company indicate that Healthcare Global is being valued at Rs 275 crore on a projection of a topline of Rs 185 crore during 2009-10. Healthcare Global is understood to be having a 23 per cent EBITDA margin. Milestone Capital was started by former Pantaloon Retail COO Ved Prakash Arya during 2007 to actively manage investments for Indian and global investors.