CK Birla Healthcare Plans to Raise $150 Mn Via Minority Stake Sale

The funds raised will also be used to reduce the company’s debt, which stood at INR 454.70 Cr as of March 2024.

CK Birla Healthcare, the healthcare division of the $3-billion CK Birla Group, is reportedly seeking to raise $150 million (INR 1,250 Cr) by selling a minority stake, according to sources familiar with the matter.

The company has engaged Kotak Mahindra Capital to manage the fundraising process and has initiated talks with both global and domestic investors.

However, the size of the stake being sold remains undisclosed. A spokesperson for CK Birla Healthcare declined to comment on the matter.

CK Birla's Hospital Expansion

CK Birla Healthcare operates five hospitals in Gurugram, Delhi, Kolkata, and Jaipur, as well as its Birla IVF clinics, which include 37 centers nationwide.

Key facilities include the 440-bed Calcutta Medical Research Institute (CMRI), the 150-bed BM Birla Heart Research Centre in Kolkata, and the 230-bed Rukmani Birla Hospital in Jaipur.

The company has ambitious expansion plans, aiming to add 15 new hospitals with 80-100 beds each over the coming years. The funds raised will also be used to reduce the company’s debt, which stood at INR 454.70 Cr as of March 2024.

Strong Growth in the Hospital Segment

In FY24, CK Birla Healthcare’s revenue from operations saw a 34% growth, reaching INR 294 Cr , driven primarily by the hospital and IVF segments.

The hospital segment accounted for 75% of total revenue, with IVF contributing the remaining 25%. While the hospital segment showed strong profitability, the IVF segment’s profitability was more subdued, according to a CARE Ratings report.

The company’s recent growth includes the opening of hospitals in Gurugram (2017) and New Delhi (2021), as well as the addition of 10 new IVF centers in FY24, which significantly boosted revenue in the segment.

In another development, CK Birla Hospitals has launched a new Osteopathy Clinic at the Calcutta Medical Research Institute (CMRI) in Kolkata, offering advanced non-invasive treatments aimed at enhancing overall health and well-being.

Founded in 1969, CMRI is a 440-bed, NABH-accredited multi-specialty hospital. The new clinic will focus on osteopathic medicine, which promotes the body's natural healing abilities for comprehensive care.

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