Norwest Venture Partners nearing 40 percent acquisition in Regency Healthcare for Rs 600 crore
New Delhi: Norwest Venture Partners is reportedly on the verge of acquiring a 40% stake in Regency Healthcare in a deal amounting up to ₹600 crore. The transaction will encompass both an expansion of the equity base and a transfer of existing shares to the buyer, backed by Wells Fargo, sources familiar with the matter informed ET.
Wells Fargo, the US banking giant, is the principal institutional limited partner in Norwest Venture Partners. It's anticipated that Norwest and Regency Healthcare will finalize an agreement within the forthcoming two weeks, the aforementioned sources disclosed.
Regency Healthcare, promoted by Kanpur-based Atul Kapoor, operates a sizable 1,000-bed hospital in the city. Additionally, in a joint venture with Germany's Fresenius Medical Care, a global frontrunner in managing end-stage kidney diseases, it administers dialysis clinics. Back in 2016, International Finance Corporation (IFC) and HealthQuad invested roughly $14 million in Regency Healthcare. Both will exit as part of the arrangement.
IFC, functioning as the private investment arm of the World Bank, had previously detailed its investment rationale in a public note. It highlighted that the funds would bolster the expansion of hospital beds in Uttar Pradesh, a region notably lacking in healthcare infrastructure. Notably, Regency was in the process of establishing the first cancer hospital in Uttar Pradesh when the investment was initiated. HealthQuad, a healthcare-centric venture capital fund, had mobilized a second fund of $162 million last March with backing from several global investors, led by biopharmaceutical giant MSD - Merck, Sharp & Dohme.
Norwest Venture Partner manages a robust $12.5-billion investment portfolio across North America, Israel, and India. Some of its active investments include stakes in Xpressbees logistics, Duroflex, and Swiggy. It had also previously invested in Thyrocare and RBL Bank.
