Rainbow Children’s Medicare Private Limited (http://www.rainbowhospitals.in) has received an investment of Rs 100 crore from CDC, the UK’s development finance institution and The Abraaj Group, in the largest private equity investment in paediatric and maternity care in India, informs a communiqué from Veda, the advisors to the deal. This is CDC’s first direct equity investment in India since the launch of its new strategy in late 2012, adds Veda. “This investment will help Rainbow expand and develop its high-quality medical facilities, allowing the company to increase the number of beds available to patients from the current level of 400 to about 1,000.”
C. Venkat Subramanyam, Founder Director, Veda Corporate Advisors P Ltd (www.vedacorp.com), informs YourStory that, as the sole advisor to Rainbow and its promoters in the transaction, Veda provided comprehensive transaction advisory services covering strategic positioning, valuation and transaction structuring, assistance in due diligence, negotiation and finalisation of definitive agreements, leading to the successful closure of the transaction.
In this quick telephonic interview, Venkat dissects the deal for the benefit of readers.
Rainbow’s promoter and founder is Dr Ramesh Kancharla who earlier worked at Kings’ CollegeHospital and Great Ormond Street in London. Rainbow Hospitals, Hyderabad, is into specialised paediatric and maternity care.
CDC is the UK government-owned development finance institution that uses its own balance sheet to invest in the developing countries of South Asia and Africa. It has net assets of £2.8bn. Under its recent business strategy, announced in September 2012, CDC provides debt and direct investment to businesses as well as acting as a fund-of-funds investor.
About The Abraaj Group
Founded in 2002, The Abraaj Group operates in the growth markets of Asia, Africa, Latin America and the Middle East. Employing over 300 people, the Group has over 30 offices spread across 6 regional hubs. The Abraaj Group currently manages US$ 7.5 billion across 25 funds, across both private equity and real-estate.
Veda is an investment bank providing focused advisory services to companies and entrepreneurs. It offers independent advice and customised solutions on private equity fund raising and M&A. With a team spread across offices in Chennai, Bangalore, Hyderabad and Mumbai, Veda handles a variety of transactions.