Sri Kavery Medical To Raise Growth Capital; IVA To Exit

Sri Kaveri Medical Private Limited is planning to raise INR 1,750-2,000 Mn in growth capital to provide existing investor India Venture Advisors Pvt. Ltd (IVA) an exit from its five year old investment and fund its growth plans.
The healthcare-focused private equity fund of the Piramal Group had invested INR 900 Mn in 2009 for a 30% stake through a mix of equity and warrants. The firm had invested from its first INR 3,650 Mn fund when the hospital chain had a 400-bed capacity and was looking to increase it to 1,000 over a five-year period.
Sri Kavery Medical Care (Trichy) Ltd, popularly known as Kauvery Hospital was incorporated in 1997 by two specialist doctors S.Chandra Kumar, Senior Consultant Anesthesiologist and Critical Care Specialist and S.Manivannan, Senior Consultant Anesthesiologist and Critical Care Specialist. Kauvery Hospital has started a multi – specialty hospital at Chennai apart from the tertiary care hospital atTrichy. The company commenced operations of the Trichy hospital from November, 1997 and the Chennai hospital from April, 2012.
It currently has a total capacity of 750 beds and has a presence in various Tier II cities of Tamil Nadu with two tertiary care multi-speciality hospitals and an exclusive cardiac care facility in Tiruchirappalli.
It aims to set up 1,000 beds in next three years with an investment of INR 1000 Mn.
In 2008, Kauvery Hospital acquired Seahorse Hospitals Limited in 2008 and the name of the company has since been changed to KMC Speciality Hospitals (India) Ltd, (KMCSHIL) a BSE listed company. KMSCHIL operates as a 200 beds multi - specialty hospital at Trichy with Sri Kavery Medical Care (Trichy) Limited holds 75% stake in the subsidiary.
For the year ending 2013 the company had revenues of INR 682.68 Mn.
Founded in IVA seeks to make investments in the healthcare, pharmaceuticals, education, social infrastructure resources, and life sciences sectors with a ticket size of INR 300 Mn ($5 Mn) and INR 1000 Mn ($16.79 Mn) picking up minority stake between 10% and 30%.
Its other investment include Baroda Medicare in Vadodara and Dr Ramesh Cardiac & Multi-specialty Hospital in Vijayawad. It has also invested in Pharma retailer MedPlus.