InvestorQ : Why is the NIIF investing a big sum in Manipal Hospitals?
Aditi Sharma made post

Why is the NIIF investing a big sum in Manipal Hospitals?

Mahima Roy answered.
1 year ago

The National Investment and Infrastructure Fund Ltd or NIIF, which was sponsored by the government of India to invest in enabling infrastructure, announced an outlay of Rs.2100 crore in Manipal Hospitals. This investment will be made through its private equity fund. Effectively, NIIF will pick up the minority stake that is being sold by Ranjan Pai, who is currently the Group Chairman of the Manipal Education and Medical Group

Dr. Ranjan Pai will be diluting a small part of his stake to the NIIF but neither the NIIF nor the representatives of Manipal group have confirmed as to what will be the extent of dilution by Mr. Pai. This investment will be made by the Strategic Opportunities Fund of the NIIF and will mark its first such investment in the healthcare sector. Of course, this deal will still have to go through multiple levels of approvals before it can be through.

For NIIF, this is an opportunity to play a catalytic role in the infrastructure creation of the fast growing healthcare sector in India. Recently, Manipal Hospitals had made a big foray into the NCR and Eastern region. It had acquired the India assets of Columbia Asia Hospital Group for Rs.1,800 crore, giving them a ready access to the NCR region and the East. The big areas of focus for Manipal Hospitals now are East India, Kerala and Hyderabad.