CDC Group in talks to invest Rs. 900 crore in Dr Devi Prasad Shetty's Narayana Healthcare.

CDC Group, the world's oldest development finance institution, is in talks to invest around $150 million (Rs. 900 crore) in Dr Devi Prasad Shetty's Narayana Healthcare chain of hospitals, two people with direct knowledge of the development said.

The investment will help existing investor JP Morgan partly exit the company, while providing Narayana Healthcare fresh capital for its expansion, these people said.

Private equity investors JP Morgan and Pinebridge Capital had invested $100 million in the company in 2008 for a 25 per cent stake. The company was valued at Rs. 1,600 core at that time. 'The company has aggressive expansion plans and the current investors have stayed their course. This deal will help JP Morgan part exit and some fresh capital will come into the company,' an investment banker with knowledge of the development said.

Founded in 1948, CDC Group is wholly-owned by the UK government's Department for International Development (DFID). It generally invests in private equity funds. It has invested in around 35 funds in India, with the largest commitment being $200 million in IDFC's Core Infrastructure Fund II.

CDC Group has now resumed direct investment in companies and is looking to pump in around $1 billion over the next five years.


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