July 2010

NEWS REVIEW/MONEY MATTERS

Fortis Healthcare plans to raise Fresh Fund

Fortis Healthcare Ltd has lined up its fund-raising plans as it prepares for a possible takeover battle for Singapore-based Parkway Holdings. The healthcare major plans to raise an aggregate amount of up to INR 2,750 crore through issuing of fresh securities and has approved increasing the borrowing limit to Rs 6,000 crore.

Fortis has also raised Rs 380 crore from an arm of GIC Special Investments Pte Ltd, the private equity arm of Singapore Government state investment firm and $100 million through the issuance of foreign currency convertible bonds (FCCBs) to fund the Parkway stake purchase.

The acquisition of Parkway by Fortis is the largest overseas acquisition by an Indian company in the healthcare sector. The acquisition of a strategic stake in Parkway Holdings Limited increased Fortis’ network, now with a presence in Brunei, China, India, Malaysia, Mauritius, Singapore and the UAE.

Nova Medical raises funds from NEA, GTI Group
Nova Medical Centers, incubated by GTI, the specialised day care surgery centre, has completed its second round of private equity funding by raising the capital required for its Rs 250-crore project of expanding 25 centers in the country.

This investment has been jointly facilitated by two US based venture capital firms, GTI Group and New Enterprise Associates (NEA). Nova has been conceived and incubated by GTI LLC. The initial round of funding saw Nova Medical Centers raise USD 3.5 million from GTI LLC. The GTI Group continues to be the largest shareholder in Nova.

NEA Eyes USD 50M Deals in healthcare chains

US-based private equity firm New Enterprise Associates Inc. (NEA) is betting big on the Indian healthcare story as it eyes investments in specialty hospital chains. Globally, nearly 40% of its total assets under management of USD11 billion is invested in healthcare-related sectors and it proposes to attach a similar significance to its play in India.

NEA, which had raised a USD2.5-billion global fund in January, may allocate 15% of this fund to India investments. NEA, closed an investment in Nova Medical recently. It is learnt that the firm is uating investment deals in the range of USD10-USD50 million in smaller hospital chains across Indian states.

ICICI Venture may sell I-Ven Pharma to SPV Partner Dr Reddy’s

ICICI Venture, India’s largest private equity player, is looking at selling I-Ven Pharma Capital Limited, a Special Purpose Vehicle, to Dr Reddy’s Labs (DRL), its exclusive partner in the SPV.

ICICI Venture has invested Rs 100 crore and holds 100% stake in I-Ven Pharma, created in 2005 for the purpose of funding research, development and commercialisation of pharma products by DRL for the US market. It was the first deal of its kind in R&D funding in the Indian pharma sector.

ICICI Venture has been on an exit mode from a few of its portfolio firms. It has exited from diagnostic chain Metropolis Healthcare in a secondary transaction with Warburg Pincus. It was also reported about ICICI Venture’s plans to exit from Ranbaxy Fine Chemicals and to offload part of its stake in Arch Pharmalabs through the latter’s IPO expected later this year.

ICICI Venture has made significant investments in the lifescience and healthcare space. Recently, it announced an investment of Rs 120 crore ($27 million) in Star Health and Allied Insurance Company Limited from its latest fund.

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