Narayana Health to raise PE funds up to $40 million

Narayana Health will tap PE funds to raise up to $40 million for its expansion activities.

It plans to add 1,000 more beds this fiscal year and by 2017, the number is expected to grow to between 12,000 beds and 15,000 beds from the current level of 6,900 beds.

He said the group plans to expand to tier II and III towns in Maharashtra and Gujarat, and also set up hospitals in some of the cities in Uttar Pradesh such as Varanasi, Allahabad and Lucknow.

Raghuvanshi said it costs about Rs 35-40 lakh per bed in conventional hospitals such as those in Bangalore and in tier II cities like Mysore, it costs about Rs 10 lakh per bed.

Narayana Health is looking at raising up to $40 million to fund its expansion either from its existing PE funds, JP Morgan and Pinebridge though no firm decision has been taken yet. Both JP Morgan and Pinebridge have invested $100 million for a 23 per cent stake in 2008.

The company ruled out any plans to go public and any decision on it will be a collective call consisting of all the stakeholders.