HCG Eyes 20% Margin Target as KKR Acquires Majority Stake; Promoter Reduces Shareholding

2 min read Updated on 22 Aug 2025, 03:15 PM

Reviewed by

Jubin VergheseScanX News Team

Overview

Healthcare Global Enterprises (HCG) aims to achieve a 20% margin target by the last quarter of the current financial year. The company reported 15% growth and is expanding through a hub-and-spoke model. KKR has acquired a 44-54% stake in HCG from CVC Asia V in a $400 million deal, reshaping the ownership structure. HCG recently acquired MG Hospital in Vijayawada and is now in a consolidation phase. The company's market cap stands at ₹9,386.00 crore, with shares trading at ₹672.95, gaining 73% over the past year. Promoter Dr. B.S. Ajaikumar has sold 13,92,000 equity shares, reducing his stake from 6.84% to 5.84%.

*this image is generated using AI for illustrative purposes only.

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:

Stakeholder	Ownership Percentage
KKR	44-54%
BS Ajai Kumar	10.80%
CVC	6.5-7%

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:

Period	Shares Held	Percentage of Total Share Capital
Before the sale	95,39,176	6.84%
After the sale	81,47,176	5.84%

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.

Board Composition Changes

Dr. B.S. Ajaikumar was appointed as Non-Executive Director and Chairman of the Board, with 96.52% of votes in favor.
Mr. Akshay Tanna and Ms. Simrun Mehta were appointed as Non-Executive and Non-Independent Directors, receiving 99.94% and 99.95% approval respectively.
Mrs. Anjali Ajaikumar Rossi was appointed as a Non-Executive Director, with 96.52% of votes supporting the move.
Dr. Manish Mattoo was appointed as an Executive Director, garnering 92.87% approval.
Mr. Bijou Kurien was appointed as an Independent Director, with 93.20% of votes in favor.

Amended Articles of Association

Shareholders approved the adoption of amended Articles of Association for the company with 91.79% of votes in favor. This significant change to the company's governing document likely reflects updates to align with current regulations and business needs.

Consultancy Agreements

The terms and execution of consultancy agreements with Dr. B.S. Ajaikumar and Mrs. Anjali Ajaikumar Rossi were also approved, receiving 94.68% and 90.53% of votes in favor respectively.

Voting Participation

The postal ballot saw strong participation, with votes representing 84.93% of the company's total paid-up equity capital for most resolutions. This high level of engagement demonstrates active involvement from Healthcare Global Enterprises' shareholder base in key corporate decisions.

The approved changes, particularly in board composition and governance structure, may signal a new strategic direction for Healthcare Global Enterprises as it navigates the evolving healthcare landscape in India.