Private equity major KKR on Sunday said it has signed an agreement to buy a controlling stake in cancer hospital chain HealthCare Global Enterprises Ltd (HCG) from CVC Capital for $400 million.
HCG’s acquisition adds to KKR’s growing pile of healthcare companies in India including Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB Chemicals & Pharmaceuticals, and Gland Pharma.
BS Ajaikumar-founded HCG is one of India’s largest oncology hospital chains. It operates 25 medical care centres across 19 cities with 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs).
Founded in 1989, HCG went public in 2016, raising Rs 650 crore in its initial public offering (IPO). In 2020, CVC Capital acquired a controlling stake in the hospital chain for Rs 1,049 crore.
HCG’s stock has gained over 30% in the last six months since talks of KKR buying the hospital chain surfaced in media reports.
As part of the deal, Ajaikumar will take on the role of Non-Executive Chairman and be focused on driving clinical, academic, and research and development excellence, KKR said in a statement.
KKR will acquire up to 54% of equity in HCG from CVC Asia V at a purchase price of Rs 445 per share. Per the Securities and Exchange Board of India’s regulations, KKR will conduct an open offer to purchase additional equity shares in HCG from public shareholders. Upon completion of the transaction, KKR is expected to hold an equity stake of between 54% and 77%.
“HCG is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades. As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country,” KKR Partner and head of India Private Equity Akshay Tanna said.
The transaction is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
The acquisition talks come at a time when India is seeing unprecedented demand for healthcare amid rising disposable incomes and health awareness. There has also been a surge in PE and VC investments in India’s healthcare sector. Factors such as increasing insurance penetration and higher health spending have made the sector attractive to investors.
Last year, Indian healthcare firms — from traditional hospitals to medical robotics startups and healthcare financing companies — received a cumulative $5.67 billion in funding. Although this marked a 9.7% decline from the $6.29 billion raised in 2022, the volume of PE-VC deals in the sector remained steady, according to data from research firm Venture Intelligence.
