Apollo to get Rs 458 crore investment from IFC to setup small health centres
Of the total investment, $34 million is to become a part of IFC’s own account, and an equal sum is to be assigned to IFC’s asset management company.
According to the Financial Express, an IFC disclosure states that Apollo will be opening 151 small format healthcare centres, nine facilities and 64 labs, which in turn will be supported by 765 collection centres, in the eastern and southern parts of the India. The estimated cost of the total project has been worked out at a close to $135 million.
Seeing the importance of smaller hospitals/health care centres, a relatively small sector in India,as well as, other emerging markets, the IFC claimed that its investment in India, would act as a model to show how such small format healthcare centres, can succeed in the emerging markets.
Mumbai listed- Apollo Hospitals, is the country’s largest hospital chain, founded in 1979, by Dr. Pratap C. Reddy; and Apollo Health is a unit of Apollo Hospital Enterprise Ltd. The health facility operates pharmacies and provides consultancy, telemedicine and healthcare education and training services. 34.4% of the hospital shares are owned by the Reddys’, while other significant shareholders include: Integrated Healthcare Holdings (Mauritius) Ltd (10.9%), Massachusetts Mutual Life Insurance (8.7%), and Apax Group (5.1%).
IFC makes both debt- and equity style investments in India across sectors. Its investments in the healthcare sector include Fortis Healthcare Ltd, and Max Hospitals. Earlier, it had also invested in an eye-care firm- Eye-Q Vision, the dialysis chain-NephroPlus, a home healthcare firm- Portea and diagnostics chain-SRL.
IFC is the private sector investment arm of the world bank. IFC became an anchor investor in a Bangalore based oncology chain- HealthCare Global Enterprises Ltd, in March this year;In April, the corporation announced that it planned investing Rs 61.5 crore ($9.45 million) in a healthcare service provider- Regency Hospital Ltd, Kanpur, reports VC Circle.