Healthcare Global Enterprises (HCG) saw a significant change in its ownership structure as Aceso Company, part of the CVC Network, sold nearly 6% of its stake through a block deal on the National Stock Exchange (NSE). The transaction, valued at ₹552.00 crore, was executed at ₹695.00 per share.

Key Buyers

The stake sale attracted several prominent investors:

• Nippon India Mutual Fund emerged as the largest buyer, acquiring 44 lakh shares worth ₹306.00 crore. This purchase increased Nippon's total stake in HCG to 5.7%.
• Plutus Wealth Management invested ₹50.00 crore in the deal.
• Axis Mutual Fund participated with a ₹66.00 crore investment.
• Morgan Stanley Asia Singapore acquired shares worth ₹61.00 crore.

CVC Capital's Exit Strategy

This transaction follows CVC Capital's exit from its controlling position in HCG nine months earlier. At that time, CVC Capital sold its majority stake to KKR at ₹445.00 per share. The recent sale by Aceso Company has further reduced CVC's presence in HCG, with Aceso's stake dropping from 60.4% to 8.8% between March and June.

HCG's Market Performance

HealthCare Global Enterprises has shown strong market performance:

• The company's shares have rallied 42% year-to-date, significantly outperforming the NSE 500 index, which has gained 3% in the same period.
• HCG reported a net profit of ₹44.00 crore on revenues of ₹2,223.00 crore in its latest financial results.

Analyst Outlook

The stock continues to attract positive attention from market analysts:

• Seven out of eight Bloomberg analysts rate the HCG stock as 'Buy'.
• Ambit Capital has set a 12-month target price of ₹860.00 for the stock.

This stake sale by Aceso Company marks another significant change in HCG's ownership structure, following the earlier exit by CVC Capital. The strong interest from institutional investors and the company's robust market performance suggest continued confidence in Healthcare Global Enterprises' prospects.

Healthcare Global Enterprises (HCG), a leading cancer care provider in India, is making headlines with significant developments in its financial outlook and ownership structure. The company is poised for growth while undergoing changes in its shareholding pattern.

Margin Target and Growth Strategy

Executive Chairman BS Ajai Kumar has expressed confidence in HCG's ability to achieve its 20% margin target by the last quarter of the current financial year. The company's performance is already strong in key locations, with Bengaluru and Ahmedabad centres operating at 20-30% margins. HCG aims to replicate this success across all its locations.

The company reported a 15% growth and is focusing on expansion through a hub-and-spoke model. This strategy involves establishing specialized infusion centres, allowing HCG to penetrate niche areas of healthcare delivery.

Ownership Restructuring

In a significant move, American private equity firm KKR has acquired a substantial stake in HCG. The transaction, valued at $400 million, sees KKR purchasing up to 54% stake from CVC Asia V. This deal has reshaped the ownership structure of the hospital chain:

Recent Acquisitions and Market Performance

HCG recently expanded its footprint by acquiring MG Hospital in Vijayawada. The company is currently in a consolidation phase, focusing on integrating its recent acquisitions and optimizing operations.

The market has responded positively to HCG's strategies and performance. The company's market capitalization stands at ₹9,386.00 crore, with shares trading at ₹672.95. Notably, HCG's stock has gained 73% over the past year, reflecting investor confidence in the company's growth trajectory.

Promoter Shareholding Update

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, there has been a change in the promoter's shareholding. Dr. B.S. Ajaikumar, the Promoter and Director of HCG, has disposed of 13,92,000 equity shares in the open market. This transaction has altered his shareholding as follows:

The total promoter holding, including encumbered shares, has decreased from 10.40% to 9.40% of the total share capital.

Conclusion

Healthcare Global Enterprises is navigating a period of significant change, balancing ambitious margin targets with strategic ownership shifts. The entry of KKR as a major stakeholder, coupled with the company's expansion plans and strong market performance, positions HCG for potential growth in the competitive healthcare sector. As the company continues its consolidation efforts and pursues its margin goals, investors and industry observers will be keenly watching HCG's progress in the coming quarters.