Healthcare Global shares surge nearly 3.5% as KKR agrees to acquire controlling stake in the firm

As part of the transaction, KKR will acquire up to 54% of equity in HCG from CVC Asia V at a purchase price of ₹445 per share. "Pursuant to the Securities and Exchange Board of India’s (SEBI) Takeover Regulations, an open offer will be conducted by KKR to purchase additional equity shares in HCG from public shareholders. Upon completion of the transaction, KKR is expected to hold an equity stake of between 54-77%," HCG said in a statement.

During the opening bell, shares of HCG jumped 3.45% on National Stock Exchange to trade at ₹517 per share. On BSE, the company was trading at ₹511.45, rising 2.29%. At close, the scrip settled at ₹510 apiece on NSE, surging 2.05%.

Following the completion of the transaction, HCG Founder B S Ajai Kumar will take on the role of Non-Executive Chairman and will focus on driving clinical, academic and R&D excellence, it added.

Founded in 1989, HCG is one of India's largest oncology hospital chains. It operates 25 medical care centres across 19 cities, including 2,500 beds.

Since CVC Asia V invested in 2020, CVC's India team has worked closely with HCG on a transformational value creation programme to drive revenue growth through and beyond Covid, improve key performance indicators, source and execute acquisitions and digital transformation, whilst ensuring continuous improvement in patient care and clinical outcomes.

Siddharth Patel, Managing Partner at CVC, said, "We are proud to have supported HCG's transformation at a critical juncture in time to build it into one of India's leading healthcare organisations and the delivery of high-quality care to many patients over the years."

Ajaikumar said, "I want to thank CVC for their support through the years, helping the management to put HCG in the strong position it is in today. I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG."

"Patient wellbeing and outcomes will always be a top priority for us at HCG, and in my new role as non-executive chairman, I would focus on clinical aspects involving a multi-disciplinary approach to cancer care and research and development and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics," he said.

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities.

Bengaluru-headquartered company had reported a 22.8% increase in consolidated net profit to ₹7 crore during the third quarter of the financial year ended December, compared to ₹5.7 crore in the same period the previous year.

The company reported operational revenue of ₹557.7 crore in Q3FY25, up from ₹468.9 crore in the same period last year.

HCG’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 15% year-on-year to ₹92.3 crore during the reporting quarter. Its EBITDA margins stood at 16.5% in Q3 FY25.