Healthcare Global Enterprises (HCG), one of India's largest oncology hospital chains, saw a significant shift in its shareholding pattern as major institutional investors acquired a substantial stake in the company.

Key Highlights

• Morgan Stanley, Nippon India Mutual Fund, Motilal Oswal MF, and Plutus Wealth Management collectively purchased 63 lakh equity shares of HCG.
• The transaction was valued at Rs 438.00 crore, with shares priced at Rs 695.00 each on the National Stock Exchange.
• The acquired stake represents 4.52% of HCG's equity.
• CVC Capital Partners, through its affiliate Aceso Company Pte Ltd, was the seller in this transaction.
• Aceso Company's holding in HCG decreased from 8.76% to 4.24% following the sale.

Transaction Details

The open market transaction saw four prominent institutional investors stepping in to acquire a significant stake in HealthCare Global Enterprises. The details of the transaction are as follows:

Market Response

Following the news of this substantial transaction, HCG's stock price experienced a slight dip. The shares closed at Rs 685.95, down 1.31% from the previous close.

Recent Developments

This transaction comes in the wake of a significant announcement made in February. KKR, a global investment firm, had revealed agreements to acquire up to a 54% equity stake in HCG from CVC Capital Partners. The deal, valued at approximately USD 400 million, is set to make KKR the largest shareholder in the healthcare company.

About HealthCare Global Enterprises

HealthCare Global Enterprises, founded in 1989, has established itself as a prominent player in India's healthcare sector, particularly in oncology services. The company operates an extensive network of 25 medical care centres spread across 19 cities in India. This wide reach has positioned HCG as one of the country's largest oncology hospital chains, providing specialized cancer care services to patients across the nation.

The recent share transactions and the upcoming change in majority ownership underscore the attractiveness of HCG in the healthcare investment landscape, potentially setting the stage for further growth and expansion in India's rapidly evolving healthcare sector.

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.