Advent International is investing INR31.5bn ($328.5m) in Indian hospital operator Yatharth Hospitals for a 24.9% stake, according to Private Equity Wire, citing a Reuters report. The transaction sent Yatharth’s shares to a record high, with the stock rising as much as 8.6% to INR1,067 following news of the investment.
Investment terms and market reaction
The investment is for a 24.9% stake in Yatharth Hospitals and totals INR31.5bn ($328.5m), according to Private Equity Wire. After the investment news, Yatharth’s shares rose as much as 8.6% to INR1,067, which the report describes as a record high.
Yatharth footprint and capacity plans
Yatharth operates nine multi-speciality hospitals primarily across northern India, with approximately 2,800 operational beds, according to Private Equity Wire. The company plans to expand capacity to around 3,250 beds as it continues to grow its hospital network.
Yatharth Hospitals was founded in 2008 and has expanded its presence across northern India, with its network spanning a range of multi-speciality healthcare services.
Ownership and positioning in India healthcare private equity
The investment will leave the founding Tyagi family as Yatharth’s largest shareholder, according to the company as reported by Private Equity Wire. The report characterises the transaction as a significant minority investment that allows the founding shareholders to retain their position as the company’s largest owners.
Advent’s deal comes amid increasing private equity activity in India’s healthcare market, according to the same report. KKR agreed last month to acquire Swedish healthcare provider Medicover’s Indian business for $1.4bn, while Blackstone acquired a controlling interest in Hyderabad-based CARE Hospitals in 2023.
(General context) Private equity firms commonly take minority stakes in operating companies, and public-market share prices can react immediately to disclosed investments.
