Dubai-based Aster DM Healthcare has acquired Ajay Piramal Group-promoted India Venture Advisors‘ 25 per cent stake in the Vijayawada-headquartered healthcare chain Ramesh Hospitals for Rs 110 crore (around $16 million), according to a report in The Economic Times quoting sources.
The firm also bought additional 5 per cent stake taking its stake to nearly 30 per cent in Ramesh Hospitals, valuing it at around Rs 370 crore. It is looking to increase its holding and acquire controlling stake the hospital chain in a few months.
The health care firm has raised around $205 million from private equity funds for its India growth. It has also committed an investment of around Rs 200 crore ($30 million) in the next couple of months in Ramesh Hospitals to turn it its majority-owned subsidiary, said the report.
“Ramesh Hospitals’ promoters, led by P Ramesh Babu, are open to divesting a majority stake in favour of Moopen’s Aster DM, which has committed nearly Rs 200 crore of equity investment. On pumping in further funds for controlling stake, Ramesh Hospitals will become one of the majority-owned subsidiaries of Aster DM over the next few months,” said the source.
On Monday, Ramesh Hospitals announced that it had tied up with Aster DM Healthcare to take tele-medicine and emergency healthcare to tier II and tier III cities of Andhra Pradesh.
“Our plan is to penetrate the rural pockets of the State where a lot of potential is seen in emergency care, especially after 5 p.m. where the medical expertise is inaccessible. Tele-medicine and tripling our capacity to 1,500 beds in the coming five years are among the focused areas,” said Ramesh Hospitals managing director L. Ramesh Babu.
At present Ramesh Hospitals chain has a capacity of 560 beds in three hospitals, of which two are located in Vijayawada and a latest one in Guntur with 350 beds.
Besides, the tie up is also expected to develop centres of excellence in paediatric cardiology, oncology, gastroenterology, nephrology and transplant programs for heart, liver and kidney in the State.
“We have lined up around Rs 250 crore of investments towards the capacity expansion over the next three years and Aster DM has assured to support us with further equity infusion.“Ramesh Hospitals’ chief financial officer Ravi Kiran Pothineni told The Economic Times.