HealthCare Global Enterprises(HCG), the largest cancer care network chain in the country has filed for an Initial Public Offer (IPO) with market regulator Securities and Exchange Board of India (Sebi). The company is planning to raise around Rs. 640 crore to purchase medical equipment, investment in IT software, services and hardware, payment of debt and for general corporate purposes.
According to Draft Red Herring Prospectus (DRHP), HCG’s issue consists of a public offer of up to 3.11 crore equity shares which covers a fresh issue of up to 1.16 crore shares and an offer for sale of up to 1.95 crore scrips by existing stakeholders.
“The IPO will see the HCG sell 11.6 million primary shares, while investors in the firm will sell 19.4 million shares as part of an offer for sale, stated the document on Sebi website.
It is indicated that the investors selling part of their holding through the offer include Milestone Army Trust, India Build-Out Fund I, PI Opportunities Fund I and V-Sciences Investments Pte Ltd.
India Build-Out Fund invested Rs. 31 crore in HCG in 2010, while V-Sciences invested Rs. 60 crore in the firm in 2013. PI Opportunities holds 21.11 per cent stake in the company, while India Build-Out and V-Sciences own 17.22 per cent and 16.16 per cent, respectively. The promoter group holds 29 per cent stake in the firm.
The offer constitutes 36.83 per cent of the company’s post offer paid-up equity share capital.
The Bengaluru-based, HCG has 15 comprehensive cancer centres with over 475 oncologists. It was in mid July 2006, HCG raised Rs. 500 million in equity from IDFC Private Equity Fund II, a fund managed by IDFC Private Equity and in June 2007, received Rs.22.5 crore ($5 million) from Evolvence India Life Sciences Fund promoted by the Dubai-based Evolvence Capital.
In 2008, PremjiInvest, the family investment office of Wipro’s founder Azim Premji specializing in private equity and venture capital investments provided a fund infusion of Rs. 80 crore to HCG for setting up Centres of Excellence.
In 2013, the cancer care chain received Rs. 130 crore fund infusion from Temasek Holdings, a Singapore based investment company which was being used for its Greenfield project in Bengaluru, entry into Africa and expansion of its current 27 centre network of hospitals in the country.