Advent sells CARE Hospitals stake for Rs 1,300 cr

The sources also added that the UAE-based group will also be picking up some stake from the promoters.

CARE is the fifth largest healthcare provider in the country, operating as many as 2,600 beds across 16 hospitals in nine cities.

The Abraaj Group has a strong track record of investing in the healthcare sector, having deployed nearly USD 1 billion globally in 27 investments in growth markets.

The transaction is expected to conclude in the first quarter of 2016.

Abraaj and CARE management will focus on expanding its integrated healthcare delivery system, especially in the under-penetrated regions, the company said. It added the partnership will also bring CARE's high-quality and proven delivery platform to other markets where Abraaj operates.

Sev Vettivetpillai, partner and global head of Abraaj's Thematic Funds Business, said this investment offers a long-term opportunity for Abraaj to help build a better and more sustainable healthcare infrastructure in a country where the healthcare gap is profound.

CARE has been a pioneer in providing quality healthcare to middle and low income patients, and has the potential for further expansion domestically and internationally.

"We are confident that Abraaj will enhance our service offerings. These relationships will play a key role in enhancing public-private partnerships that are essential to the development of sustainable healthcare systems," CARE Hospitals founder B Soma Raju said.