Healthcare & Life Sciences
Veda advises Omega Hospitals, India’s second largest oncology chain, in its Series A funding from Morgan Stanley
About
Omega Hospitals
Founded in 2010, Omega hospitals currently runs a chain of cancer hospitals across multiple cities. Ranked as the second largest oncology chain in India, Omega hospitals commenced state-of-the-art, 450-bedded quaternary care facility in Gachibowli, Hyderabad as well as expanded into new markets such as Jabalpur, Madhya Pradesh during the year 2023. The Company has successfully established a Doctor-partner model to expand its reach in new markets and would continue to expand across India through a combination of organic growth and inorganic acquisitions with like-minded doctors as its partners. For more information, visit https://www.omegahospitals.
Morgan Stanley
Morgan Stanley Private Equity Asia (“MSPEA”) is one of the leading private equity investors in Asia-Pacific, managing third party money funds, having invested in the region for over 20 years. MSPEA invests primarily in highly structured minority investments and control buyouts in the mid-market segment. The experienced investment team is led by senior professionals with extensive industry relationships, in-depth market knowledge and the ability to apply international investment principles within each local context. MSPEA has offices in Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Mumbai, Bangkok, and New York, and leverages the brand and unparalleled global network of Morgan Stanley. In India, MSPEA has been operating for over a decade and funds managed by MSPEA have made 14 investments across the pharma, healthcare, consumer and financial services sectors.
Background
We are pleased to announce that our client, Hyderabad Institute of Oncology Private Limited (“Omega Hospitals” or “the Company”) has raised Series A fund raise of INR 500 Cr from Morgan Stanley PE Asia.
Led by Dr Mohan Vamsy, a pioneer in the field of cancer care and a leading surgical oncologist, Omega Hospitals is India’s second largest cancer focused hospital chain with 10+ hospitals across multiple cities, 1,400+ bed capacity and industry leading metrics. The Company has successfully created a partner doctor led model for expansion into newer cities delivering consistent growth over several years and enhancing access to high-quality healthcare services for millions.
The funding will help Omega hospitals to consolidate its dominant position in South India as well as expand pan India. The Company targets to double its existing capacity through a combination of organic growth and inorganic acquisitions over the next 2-3 years.
Veda Corporate Advisors (“Veda”) was the exclusive financial advisor to the Company and its promoters. Veda provided comprehensive transaction advisory services covering identification of prospective investors, strategic positioning including deal structuring, assistance in due diligence, negotiation and finalisation of key commercial terms, leading to the successful closure of the transaction.
This marks Veda’s 55th transaction in healthcare and lifesciences space and 15th transaction in single specialty space straddling across 7 sub segments viz., eye care, mother & child, oncology, nephrology, dental, diabetology, and audiology. This is the largest growth capital investment in oncology space and is indicative of increasing traction in the segment
“With growing incidence of cancer, there is a significant opportunity to make high quality, full service oncology care accessible to all the patients. The current investment from Morgan Stanley would help Omega penetrate the Indian market and create a strong leadership position in oncology in the coming years. Veda team has closely worked with us throughout the process of our Series A private equity investment and helped us find a marquee pe investor who we believe would add great value in our growth journey.”
Dr. Ch Mohan Vamsy
Chief Surgical Oncologist and Managing Director, Omega hospitals
“Under the able leadership of Dr Mohan Vamsy, Omega hospitals has been one of the fastest growing oncology chain in India. The fund raise from Morgan Stanley will help the company achieve greater heights in the years to come. It was pleasure to work with Dr Vamsy and team in their growth journey and to assist in raising first round of institutional funding for Omega.”
Rajan V P
Managing Director, Veda Corporate Advisors