A Danish investment behemoth, Novo Holdings, has acquired a 49 percent stake in the Indian company Surya Hospitals for a total of up to Rs 1,200 crore. This acquisition highlights that the country’s specialized healthcare sector, especially the area concerning women’s and children’s healthcare, is still a significant attraction for investors. This is the second biggest merger/acquisition worth over Rs 10,000 crores in the country’s hospital sector.
Strategic Focus on Specialized Healthcare:
This acquisition is indicative of Novo Holdings’ strategy to concentrate on specialized healthcare delivery in the Indian market. Surya Hospitals, with its headquarters in the Maharashtra state of India and branches in Mumbai, Pune, and Jaipur, have long been known for their excellence in women’s and children’s services.
Seller & Transaction Information:
The stake has been acquired from SCP Investments, advised by former KKR India private equity head, Heramb Hajarnavis. The acquisition reflects the view of the Novo Holdings, the parent company of Danish drug developer, Novo Nordisk, towards the growing need in the Indian healthcare scenario.
More General Sector Dynamics:
Observers in the industry point out that this deal is part of an overall trend. Over Rs 10,000 crore worth of merger and acquisition deals occurred in the hospital industry last year alone. Some other recent transactions that are comparable to this acquisition include the Manipal Hospitals buyout of Sahyadri Hospitals for Rs 6,400 crore and the Rs 2,000 crore investment that KKR made in the Baby Memorial Hospital in Kerala, which specializes in pediatrics.
Future Growth Prospects:
While financial specifics were not disclosed, sources familiar with the matter indicated the transaction valued Surya Hospitals between Rs 1,000-1,200 crore. JM Financial served as the advisor for this deal, facilitating the partnership between Novo Holdings and Surya Hospitals’ chairman and managing director, Bhupendra Avasthi.
