Morgan Stanley PE Asia Fund Invests INR 500 Cr in Omega Hospitals

This funding aims to expand the hospital chain's reach and improve cancer care services across multiple Indian states.

Hyderabad Institute of Oncology, also known as Omega Hospitals, secured an INR 500 Cr investment from Morgan Stanley Private Equity Asia. 

This funding aims to expand the hospital chain's reach and improve cancer care services across multiple Indian states.

This significant capital infusion will facilitate Omega's expansion across Telangana, Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh, and West Bengal.

Commenting on the deal, Dr Mohana Vamsy, founder, Omega Hospitals, said, "With the increasing incidence of cancer in recent years, our mission is to deliver high-quality, full-service cancer care offerings in India. This partnership with Morgan Stanley PE Asia will help us accelerate this journey, and we are excited to build Omega Hospitals into India’s largest cancer care chain in the next few years."

Omega Hospitals, led by Dr Vamsy, is India's second-largest cancer-focused hospital chain, boasting over 1,400 beds across more than 10 hospitals. 

Sharing insights, Arjun Saigal, MD, and cohead, Morgan Stanley PE Asia said,  "From an Asia perspective, we see a significant opportunity in the Indian single specialty hospital space. This will mark our second investment in an Indian cancer hospital chain within a span of 12 months. Omega has a strong brand presence in Andhra Pradesh, and Telangana is synonymous with quality cancer care, reputed doctors, and state-of-the-art infrastructure."

Rising PE Firms’ Interest in Indian Healthcare

This investment marks Omega Hospitals' first private equity fundraise, reflecting a broader trend of private equity interest in the Indian healthcare sector. Recently, Kerala-based Sabine Hospital and Research Centre secured $50 million from CX Partners to enhance its fertility, birthing, and neonatal care services. 

Sabine Hospital, with 300 beds, including 60 NICU beds, performs over 6,000 IVF cycles and 3,000 deliveries annually, attracting regional patients.

Previously, Tamil Nadu-based Maiva Pharma raised INR 1,000 Cr in primary and secondary funding from a Morgan Stanley Private Equity Asia and India Life Sciences Fund IV fund. 

Morgan Stanley and India Life Sciences jointly acquired a controlling stake from existing investors and infused primary capital into the pharmaceutical company. According to Maiva Pharma, this is their first private equity fundraising venture. 

In Sept 2023, Morgan Stanley, a global financial powerhouse, acquired a majority stake in Gurugram-based ClearMedi Healthcare, marking its debut in Indian healthcare.

As part of Morgan Stanley's acquisition of ClearMedi Healthcare, the holding company will receive a controlling stake valued at approximately $35 million (INR 285 Cr).

The deal involved purchasing a majority stake from Italy's KOS Group and injecting fresh equity into the company.