The India Resurgence Fund (Indiarf) announced a Rs 525 crore investment on Sept 12 in order to acquire a majority stake in the Punjab-based corporate hospital chain Ivy Health and Life Sciences. According to an official statement, the Piramal Enterprises and Bain Capital investment platform will acquire Ivy's facilities in Mohali, Amritsar, Khanna, Hoshiarpur, and Nawanshahr as part of the transaction.

The transaction includes a "significant infusion" of growth capital, which Ivy will use to improve existing facilities and expand its footprint to other cities in Punjab and neighbouring regions, according to the company.

This is the maiden investment for the fund in the healthcare sector, the statement said, adding that the 2008-incorporated Ivy operates a portfolio of 800 beds in different places in Punjab, Himachal Pradesh, Haryana and Jammu and Kashmir, where 3 lakh patients get treated every year.

According to Indiarf MD Shantanu Nalavadi, following COVID-19, there is an emphasis on multi-specialty regional hospitals, while increasing insurance penetration has caused patients to seek high-quality healthcare closer to home, sparking investor interest.

"Ivy has proven its prowess as a regional healthcare provider by providing quality medical services at reasonable prices to all segments." "We are excited to invest in Ivy and committed to accelerating its growth while maintaining a focus on providing quality patient care," Nalavadi added.

Gurtej Singh, the company's chairman and managing director, stated that Ivy is the largest healthcare group in Punjab, with over 3,000 healthcare professionals caring for patients.