Vasan Healthcare looks for buys in the north

Tamil Nadu-based hospital chain Vasan Heatlhcare Pvt Ltd is scouting for acquisition of healthcare centres including chain clinics in north India to expand its presence in the region. The company expects to spend around Rs 250 crore on the acquisition.

It is in talks with six healthcare firms including chain clinics. "Overall, we plan to spend around Rs 250 crore for acquisition. The investment would be from our proposed fund raising through private equity," said A M Arun, chairman and managing director, Vasan Healthcare.

The company is in talks with private equity firms to raise around Rs 500 crore for its expansion plans. The fund would be used for the expansions planned in the current fiscal. Talks with some of the PE firms are on, but nothing has been finalised at present, he said.

With 80 eye care hospitals and 15 dental clinics in the country at present, Vasan Healthcare is planning to add another 50 eye care hospitals and 35 dental clinics in the current fiscal. A majority of its eye care hospitals and dental clinics are in south India. The company has five centres in the north at present and plans to increase it to 25 in the current fiscal, including through acquisitions.

The company would issue the proposed Initial Public Offering (IPO) in the fourth quarter of 2011-12. While funds from PE would be invested in the expansion project this year, the IPO would be used to fund further expansion at a later stage, Arun said. "We will finalise the amount to be raised through IPO later," he added.

Vasan Healthcare group has posted a revenue of Rs 500 crore for the fiscal ended March 31, 2011, as compared to around Rs 250 crore turnover reported for the previous fiscal. It expects the turnover to grow to Rs 1,000 crore in the current fiscal.