Milestone Religare has invested INR600 million ($13 million; €9 million) for an approximately 22 percent stake in Krishna Institute of Medical Sciences (KIMS), a Hyderabad-based hospital.
Set up in 2002, KIMS offers treatments in cardiology, orthopedics, urology, nephrology, dermatology and gynaecology. The 300-bed hospital intends to scale up to 850 beds.
The investment was made out of Milestone Religare’s debut fund India Build-Out Fund I and gives Amit Varma, a member of the firm’s board of directors and investment committee, a board seat. The capital will be used to add new treatments including oncology treatments and liver transplants in the next 12 to 18 months, according to a statement from the firm.
The firm is bullish on India’s healthcare services opportunities as “the current healthcare infrastructure is woefully inadequate – the hospital bed per 1000 population ratio is currently 1.5 in India against a global average of 3.3”, Varma said in the statement.
In September, Milestone Religare raised INR3 billion for its debut fund the India Build-Out Fund I. The fund is targeting a final close of INR6 billion from domestic investors by April 2010. Currently, about half of the capital raised has been deployed, according to a Milestone Religare spokesman. The firm has completed two transactions worth about INR850 million in the healthcare space and another investment worth about INR400 million in the education sector, he added.
The fund is focused on the country’s healthcare and education sectors and has a secondary focus on media, logistics and facilities management, including food services and security services.
Milestone Religare was set up in April as a joint venture between Religare Venture Capital, the private equity arm of Indian financial services firm Religare Enterprises, and Mumbai-based private equity and real estate firm Milestone Capital.