SeaLink Capital & Surya Children's Medicare Seek Majority Stake Sale

SeaLink Capital currently holds approximately 49% of Surya Children's Medicare, with the remaining stake held by the hospital's promoter, Dr Bhupendra Avasthi.

SeaLink Capital Partners, a private equity firm and the promoter of Surya Children’s Medicare are looking to sell a majority stake in western India’s largest children's hospital chain.

The deal is expected to value the company between INR 1,000 Cr and INR 1,200 Cr.

JM Financial has been appointed to oversee the sale process, and potential buyers, including global private equity firms and major hospital chains in India, have been approached.

SeaLink Capital currently holds approximately 49% of Surya Children's Medicare, with the remaining stake held by the hospital's promoter, Dr Bhupendra Avasthi.

In addition to SeaLink Capital, Dr Avasthi is reportedly considering reducing his holding in the company, according to sources cited by The Economic Times.

SeaLink Capital, founded by former KKR & Co executives Heramb Hajarnavis and Karthik Narayanswamy, invested INR 200 Cr in Surya in 2018, purchasing a stake previously held by OrbiMed and providing primary capital to the hospital chain.

Besides Surya, SeaLink Capital manages a $315-million fund and holds investments in other healthcare ventures such as NephroPlus, JM Financial, THB, and Ki Mobility.

Surya’s Growth & Specialization

Established in 1983 by Dr Avasthi, Surya Children’s Medicare has hospitals in Santacruz and Chembur in Mumbai, Pune, and Jaipur.

It is known for its expertise in high-risk maternity care and neonatal and pediatric intensive care.

The chain operates India’s largest Level 3 neonatal intensive care unit (NICU) and houses western India’s only national teaching institute for pediatric intensive care.

Surya also plans to open an additional hospital in Pune to expand its services further.

Market Landscape

India’s mother and childcare market, valued at approximately INR 30,000 Cr, is projected to grow at a compounded annual rate of 15% in the coming years.

The sector is currently dominated by a select few private hospital chains, including Apollo Cradle, Rainbow Children’s Medicare, Motherhood, Cloudnine Hospitals, and Kangaroo Care.

British International Investment Plc-backed Rainbow Children’s Medicare went public in 2022 and currently has a market capitalization of INR 14,712 Cr.

Other players in the sector, such as Motherhood and Cloudnine, are backed by global investment firms such as TPG Growth, Singapore's GIC, True North, Temasek, and Peak XV.

Recently, major hospital chains have been expanding into western India.

Manipal Hospitals, India’s second-largest chain, entered the Mumbai market by acquiring Khubchandani Hospital for INR 415 Cr and expanded into Pune in 2022 by acquiring Columbia Asia Hospitals.

Additionally, the Canadian pension fund Ontario Teachers' Pension Plan acquired Maharashtra’s largest hospital chain, Sahyadri, from Everstone Capital.

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