NRIs pick up 29% equity in Global Hospitals

Hyderabad-based Global Hospitals has divested 29 per cent of its equity in favour of an NRI group from the US led by Harinath Policherla.

This will help Global part finance its Rs 500-crore expansion plans that include setting up of hospitals in Mumbai and Kolkata besides expanding its operations in Hyderabad.

"Post the private equity placement, Harinath Policherla, a neurologist in the US, will serve as the vice-chairman of Global Hospitals and as the chairman of the group's neurosciences division," K Ravindranath, chairman of Global Hospitals, told mediapersons here on Monday.

While declining to divulge more details of the private equity transaction, Ravindranath, however, said that the funds thus raised would be sufficient for setting up hospitals in Mumbai and Kolkata.

Global Hospitals had, in January 2007, announced its plans to set up a 250-bedded hospital in Mumbai and a 750-bedded hospital in Kolkata, besides expanding its Hyderabad operations and foray into Delhi and Chennai at a later stage at a total investment of Rs 500 crore.

"The Mumbai hospital will call for an investment of around Rs 100 crore while the proposed hospital in Kolkata will entail around Rs 175 crore. We are planning to open the Mumbai hospital by mid 2008, while the latter would be operational by the end of 2008," he said.

Ravindranath said the group was scouting for land near Shamshabad on the city outskirts for setting up a 300-bedded hospital. "We are currently in talks for acquiring an existing hospital in Chennai. Talks with regard to our plans for Delhi are at an advanced stage," he added.

Besides investing in Global Hospitals, Policherla has also produced half-a-dozen movies in Telugu and has also acted in a couple of them. His maiden venture Hope won the Silver Crown in the Indian panorama section at the Goa International Film Festival of India.

His other films include Vennela, Premayanamaha and Alex. Harinath is currently producing a film titled Chandrahas with himself in the lead role. The film is slated for an April 2007 release.