Healthcare Global Enterprises (HCG) stock jumped 5% after global investment firm KKR announced the acquisition of a controlling stake in the oncology hospital chain for $400 million. As of 9:17 AM, the shares were trading 3.20% higher at Rs 515.75.
Under the agreement, KKR will acquire up to 54% equity in HCG from CVC Asia V at INR 445 per share. As per SEBI regulations, an open offer will be launched to acquire additional shares from public shareholders, potentially increasing KKR’s stake to 77%. Once the deal is finalized, KKR will take full control of HCG’s operations, while founder Dr. BS Ajaikumar transitions to the role of Non-Executive Chairman, focusing on clinical excellence and research.
Founded in 1989, HCG is India’s leading oncology hospital network, operating 25 medical centers across 19 cities. With advanced infrastructure, including 2,500 beds, 100 operating theaters, and 40 LINAC machines, HCG remains at the forefront of cancer treatment.
KKR’s investment, made through its Asia Fund IV, strengthens its position in India’s healthcare sector. The firm has previously invested in leading healthcare providers such as Max Healthcare, Baby Memorial Hospital, Healthium, and Gland Pharma.
The transaction is expected to be completed by Q3 2025, subject to regulatory approvals. With KKR’s strategic leadership and financial backing, HCG is set to expand its services, improve patient care, and reinforce its position as a leader in India’s oncology sector.
Dr. BS Ajaikumar, Founder of HCG, commented, “I want to thank CVC for their support through the years, helping the management to put HCG in the strong position it is in today. I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I will focus on clinical aspects involving multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics.”
