Founder of Asian Institute of Medical Sciences Seeks to Buy Back 49% Stake from Private Equity Investors

Narendra Pandey, the founder of Asian Institute of Medical Sciences (AIMS) and a Padma Shri awardee thoracic surgeon, is reportedly looking to repurchase the 49% stake held by private equity investors British International Investment (BII) and Orbimed. This stake is part of Blue Sapphire Healthcare, the holding company for the 15-year-old, 450-bed hospital located in Faridabad. To fund this proposed buyout, Pandey is in discussions with the credit arms of financial institutions like Avendus, KKR, and Kotak, seeking to raise around ₹500 crore. The current valuation of AIMS is estimated to be between ₹1,000 crore and ₹1,200 crore. Sources indicate that Alvarez and Marsal is advising Pandey on the fundraising.

Impact: This news highlights significant deal activity and valuation trends within India's healthcare delivery sector, which has seen aggressive valuations recently, with multiples of 25-30 times earnings for individual hospitals and smaller chains. The founder's move suggests a desire to retain control and potentially believes in the company's future growth prospects. The transaction could influence investment strategies for other healthcare providers and PE firms looking for exits or new investments in the sector. The involvement of major financial players like KKR and Avendus underscores the financial interest in this segment. A successful buyback could set a precedent for founder-led consolidation or repurchases in the Indian healthcare market.

Difficult Terms Explained: Private Equity Investors: These are firms that invest capital in companies that are not publicly traded on a stock exchange. They typically aim to improve the company's operations and then sell their stake for a profit. Stake: A share or a proportion of ownership in a company. Buyback (Share Buyback): When a company or its founder repurchases its own shares from the market or from existing shareholders. Valuation: The process of determining the current worth of an asset or a company. Thoracic Surgeon: A medical doctor who performs surgery on organs within the chest, such as the heart, lungs, and esophagus. Holding Company: A company whose primary business is owning a controlling interest in the securities of other companies.

Impact Rating: 7/10