PE Titans General Atlantic, KKR, Others Battle for Majority Stake in Asian Institute of Medical Sciences

The potential deal is expected to value the 1,200-bed chain serving North and East India at INR 1,500 Cr.

Private equity firms General Atlantic and KKR have set their foot to vie for a majority stake in the Asian Institute of Medical Sciences (AIMS).

Reportedly, they are among the four to five private equity firms competing for a majority stake in the Faridabad-based hospital chain.

Other interested parties include Singapore-based Growtheum Capital and the Asia-focused fund Everstone Capital. The India Resurgence Fund (IndiaRF), backed by Piramal Enterprises and Bain Capital, initially showed interest but recently withdrew.

The potential deal is expected to value the 1,200-bed chain serving North and East India at INR 1,500 Cr.

Founded in 2010 by Dr Narendra Kumar Pandey, AIMS offers comprehensive healthcare services, encompassing preventive, diagnostic, therapeutic, rehabilitative, and palliative care. The institute is known for its high-quality medical care and advanced technology.

The Financial Roadmap

Currently, US-based private equity firm OrbiMed and British International Investment (BII), the UK's development finance institution, hold a 49% stake in AIMS.

The remaining shares are owned by Dr Narendra Kumar Pandey and his family. Both existing investors and promoters are looking to sell a minority stake, with the exact portion dependent on the final valuation of the company, sources mentioned.

Additionally, Chennai-based Veda Capital has been appointed to manage the sale process.

The private equity firms have already submitted their initial bids. AIMS operates in Noida, Uttar Pradesh, Jharkhand, and Bihar, with a total bed count of around 1,200.

OrbiMed and BII are in the process of exiting their investments, as reported by the Economic Times.

General Atlantic aims to acquire a stake in AIMS through its recently acquired hospital chain, Ujala Cygnus.

In April, the US-based firm took a significant majority stake in Ujala Cygnus Healthcare Services, a 2,500-bed hospital chain in North India, serving tier-II and Tier-III cities through a network of 21 hospitals. General Atlantic had also recently exited a minority stake in KIMS Hospitals.

Earlier this month, KKR acquired about a 70% stake in Kerala-based hospital chain Baby Memorial Hospital (BMH) in a deal valued at $300 million (INR 2,500 Cr).

This marked KKR's return to the Indian healthcare sector two years after exiting Max Healthcare with a fivefold return.

KKR plans to leverage the BMH brand to acquire more hospitals with 500-1,000 beds in various cities and create a healthcare platform, according to Akshay Tanna, partner and head of India Private Equity at KKR.