A clutch of PE firms and an Indian corporate house are planning to buy Cumballa Hill Hospital & Heart Institute.

The hospital is estimated to be valued at around Rs.250 Cr.

Cumballa Hill Hospital is a 50-bed hospital located at South-Mumbai that specialises in heart ailments.

Transaction Reference: ET

Started by cardiologist and founder trustee KR Shetty, it has acquired the adjacent property and is also in the process of building a 220-bed multispeciality hospital with a helipad facility for air transport.

Delhi-based Fortis healthcare, owned by billionaire brothers Malvinder and Shivinder Singh, was also interested in the asset, but did not pursue it further due to the huge gap in the valuations.

Although there are legal restrictions on an outright sale of a hospital run by a trust, several such hospitals in the country have been sold through various deal structures, notably Moolchand Hospital and Escorts Heart Institute in Delhi. But a member of the Nanda family, that ran the trust operating Escorts Heart Institute, has challenged the deal and the matter is pending with the Supreme Court.

There have been some PE and VC deals in this space. Recently, Apollo Hospitals has planned to raise Rs.3,000 Cr PE to fund it s expansion plans. Gurgaon-based EyeQ Super Speciality Eye hospital raised funding from Song Investment Advisors. Manipal Health Systems is raising PE funding to implement renovation and upgradation plan of its facilities. Aavishkaar India Micro Venture Capital Fund has invested an undisclosed amount for a significant minority stake in New Delhi based G.V Meditech Pvt Ltd.

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