DM Healthcare sheds 26% pie to India Value

INDIA Value Fund, formerly GW Capital, is investing Rs 200 crore into Kochi-based DM Healthcare, the holding company of Dr Moopen's Group, a healthcare service provider with operations in Middle East and India.

The $650-million IVF will pick up roughly 26% stake in DM Healthcare, which is charting out a Rs 1,000-crore expansion in the Indian tertiary and secondary healthcare segments. Along with the investment, DM is also roping in Hinduja Hospitals honcho Anupam Verma as its CEO to spearhead operations. Veda Corporate Finance is the sole advisor of the transaction. IVF's previous investments in the healthcare domain include Biocon, Care Hospital and TTK Healthcare Services.

"We hope to have a network of hospitals with around 2500 beds in four years," DM Healthcare chairman Azad Moopen told ET from Dubai. The domestic expansion plans will be accelerated through acquisitions and joint ventures, besides greenfield ventures. The group also operates a chain of pharmacy under MedShop brand and a network of clinics under MedCentre brand in the Gulf. In India, Moopen's presence is limited to Kerala where it has a stake in the Malabar Institute of Medical Sciences. "We see a long term secular growth for healthcare sector, and along with DM we hope to tap the healthcare market for the middle class in India," said Sunil Theckath, partner in India Value Fund. DM is also in the midst of expanding its operations into more markets in Middle East, especially Saudi Arabia and Bahrain. Its existing $75 million operations cover Dubai, Abu Dhabi, Sharjah and Qatar amongst others.

Along with private equity placement, DM will show up with more cash through promoters contribution and debt for funding. "Our Middle East operations generate significant surplus cash that will be ploughed back into expansion," said Dr Moopen.

IVF, floated by GE Capital's former CEO Gary Wendt, takes active managerial positions through buyout investments across sectors. It has taken majority positions in Trinethra-Fabmall retail chain and Radio City FM, and scripted some successful exits when it sold Trinethra to AV Birla Group.

- DM Healthcare will get Rs 200 crore from India Value Fund - IVF would get 26% stake in DM Healthcare - Hinduja Hospitals honcho Anupam Verma would be the CEO of the Rs 1,000-crore expansion project - DM Healthcare's domestic expansion plans will be accelerated through acquisitions, joint ventures and greenfield venture.