Milestone Religare Investment Advisors Private Ltd, a Rs 600 crore private equity fund floated jointly by Milestone Group and Religare, is close to signing a deal to invest between Rs. 25 and 50 crore each in two South-based hospitals. The fund aims to buy a 20 per cent stake in one hospital and 40 per cent stake in the second hospital, subject to due diligence.
“The due diligence is on and in six weeks we hope to close on the deal,” said Dr Amit Varma, president, healthcare, Religare Enterprises. “The fund would acquire 20 per cent stake in a 350 bed hospital and 40 per cent in the second hospital which is of 550 beds.”
The investment will be made out through the India Build Out Fund I, a Rs 600-crore sectoral fund launched in April this year focussing on healthcare and education.
The fund also has an option of raising another Rs 200 crore in case the Rs 600 crore fund is oversubscribed. The fund is being raised from institutional and retail investors and will be closed by April 2010. The investments are made in companies from tier II and III cities for providing growth capital for improvising infrastructure and technology.
“We are also in discussions with three northern hospitals and are looking for investments in healthcare allied companies.
We have achieved 60 per cent of the target for the fund and will also go offshore if required,” said Varma. Last month, Milestone Religare Investment Advisors invested Rs 25 crore in a test preparation firm — IMS Learning Resources.