PE firm Abraaj, UK's CDC infuse Rs 100 cr in Rainbow Hospitals

Rainbow now has six hospitals and plans to expand to Kurnool, Visakhapatnam, Bangalore, Chennai and Pune in the next 5 yrs

Dubai-based PE investor the Abraaj Group and the UK government-owned development finance institution, CDC, have invested Rs 100 crore in Rainbow Hospitals for an undisclosed stake.

The Hyderabad-based child and maternal healthcare-focused hospital chain will use the amount to finance its expansion plan that includes adding beds and improving services at its existing facilities.

Rainbow now has six hospitals and plans to expand to Kurnool, Visakhapatnam, Bangalore, Chennai and Pune in the next 5 years, with an investment of more than Rs 200 crore. This would take its total beds to 1,000 from the existing 450 beds. It registered a turnover of Rs 100 crore in 2012-13. The hospital chain also plans to raise a debt of Rs 100 crore and Rs 50 crore through internal accruals to fund its network expansion.

Speaking to mediapersons, Ramesh Kancharla, managing director, Rainbow, said: "We are aiming at bringing the entire gamut of paediatric and maternal services under one roof, and for this we're open to partnerships with paediatric professionals in Tier-I and II towns to provide infrastructure, finance and technical expertise."

N Srinivasan, regional director-South Asia, CDC, said it was ready to consider investment opportunities that generate substantial employment here, and added, it saw good opportunity in Rainbow investment.