Small-Cap Hospital Stock: KKR Acquires Controlling Stake in Indian Cancer Care Hospital Chain for $400 Million

KKR, a leading global investment firm, has acquired a controlling stake in Indian Cancer Care Hospital from CVC Capital Partners for Rs 3,466 crore, strengthening its presence in the healthcare sector.

KKR has acquired a controlling stake in Healthcare Global Enterprises Ltd (HCG), a leading cancer care hospital chain, from private equity firm CVC Capital Partners for Rs 3,466 crore ($400 million). HCG shares responded positively to this development, with the stock price surging to a day’s high of Rs 536, up over 6.52 per cent on the BSE on February 24, 2025.

Private equity giant KKR has signed a definitive agreement to acquire a controlling stake in Healthcare Global Enterprises (HCG) from CVC Asia V for $400 million (approximately Rs 3,466 crore). As part of the transaction, KKR will acquire up to 54 per cent of HCG’s equity from CVC Asia V at Rs 445 per share. KKR will also make an open offer to purchase additional equity shares in HCG from public shareholders. Upon completion of the transaction, KKR is expected to hold an equity stake between 54 per cent and 77 per cent.

“KKR will become the largest shareholder in HCG and assume sole control of its operations. Dr. BS Ajaikumar, Founder of HCG, will transition to the role of Non-Executive Chairman and will focus on driving clinical, academic, and research and development excellence,” according to a company statement.

Comments from Key Stakeholders

• Akshay Tanna (KKR): Emphasized KKR's commitment to healthcare investment in India and its goal of expanding oncology services through this acquisition.
• Dr. BS Ajaikumar (HCG): Expressed gratitude to CVC for their past support and welcomed KKR as the majority shareholder, reinforcing the focus on patient well-being and outcomes.
• Siddharth Patel and Amit Soni (CVC): Recognized HCG’s transformation into a premier healthcare provider in India and praised the management's dedication to cancer care expansion.

The transaction is anticipated to be completed by the third quarter of 2025, pending standard closing conditions and regulatory approvals. 

KKR is a leading global investment firm with a disciplined and patient approach, aiming to generate attractive investment returns. It invests in private equity, credit, and real assets and has insurance subsidiaries. While, CVC is a global private markets manager with approximately €200 billion in assets under management. It has investments in around 140 companies worldwide.

Founded in 1989, HCG is one of India’s premier oncology hospital chains, operating 25 medical care centers across 19 cities. The hospital network boasts an infrastructure of 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs). HCG currently has a market capitalization exceeding Rs 7,161 crore. Over the past year, its stock has risen by 34.26 per cent, compared to the Sensex’s gain of 2.44 per cent over the same period.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.