IIFL Private Equity Fund is set to invest Rs 500-600 crore in hospital chain Kauvery Hospital for a minority stake, Mint reported.

IIFL is about to close the deal with Kauvery for a minority stake. The deal will likely be announced in a few days, the report added.

It is reported that the invested funds will likely be a mix of a primary and secondary share sale, with the existing investor of the hospital chain Lightrock (previously known as LGT Lightstone Aspada) selling part of its shares in the company. 

In September 2019, the hospital chain raised Rs 140 crore from Lightrock and the upcoming deal will reportedly value the hospital chain upwards of Rs 3,000 crore.

Spokespeople for IIFL Private Equity Fund and Kauvery Hospital declined to comment on the report.

Established in 1999, Kauvery Hospital has a presence in Tiruchirappalli, Chennai, Salem, and Hosur in Tamil Nadu with a center in Bengaluru.

The group had a combined installed bed capacity of 1,284 as on 30 June.

The company reported consolidated revenue of Rs 846.97 crore in the financial year (FY) 2022, rising from Rs 597.22 crore in FY 2021, according to a report by credit rating agency Brickworks Rating.

The hospital chain’s profit increased to Rs 99.42 crore in FY22 from Rs 58.89 crore in the previous year.