New Delhi: US private equity firm KKR has pumped ₹1,750 crore in Baby Memorial Hospital by way of a rights issue as it positions the Kozhikode-based healthcare player for a larger region-wide footprint, according to documents reviewed by ET.
With this infusion, KKR’s investment has crossed ₹5,100 crore in less than two years since it first acquired a stake in the hospital chain in July 2024, documents filed with the ministry of corporate affairs (MCA) show.
It now holds around 75% stake in the hospital, as per sources familiar with the matter.
KKR had initially invested ₹2,100 crore in Baby Memorial Hospital in July 2024 to create a platform of hospitals in southern India. It increased its investment by ₹1,261 crore in the hospital in September last year before the latest funding round, the documents showed.
It has since used Baby Memorial Hospital as a launchpad for expansion within and outside Kerala. The hospital chain is founded by physician KG Alexander who is the group chairman.
KKR declined to comment when contacted.
Baby Memorial Hospital has used the funding from KKR for acquisitions and expansion, as per sources familiar with the matter.
It recently acquired a controlling stake in Hyderabad-based Star Hospitals founded by cardiologist and Padma Shri recipient Gopichand Mannam, ET reported earlier this month. It outbid Fortis healthcare for the deal.
In September last year it acquired Kerala-based Meitra Hospital. It now operates nine hospitals across Kerala, Tamil Nadu and Telangana. Of these, six facilities are in Kerala, one in Tamil Nadu and two in Telangana through the acquisition of Star Hospitals. Its total bed capacity across these facilities will touch 3,000. It is expected to clock revenues of ₹2,500 crore by the end of the current financial year.
KKR has experience in building hospital franchises into larger regional players.
It invested in Max Healthcare and Radiant Life Care in 2018 when they were both mainly north India-focused players. It led a merger of the two hospital groups and expanded their footprint eventually exiting its investment with handsome gains.
