When several of the world's biggest private equity (PE) firms start circling over a diagnostics company in Kerala, it is worth paying attention. Warburg Pincus, TA Associates, Bain Capital, and CVC Capital are among global private equity firms in early-stage discussions to buy about 25% stake in Agappe Diagnostics, ET reported today based on information from sources. The proposed deal is likely to value Kochi-headquartered Agappe, counted among India's top in-vitro diagnostics (IVD) firms, at Rs 3,000-3,200 crore.
The PE race for a piece of Agappe Diagnostics is the latest sign that global investors are widening their search for healthcare opportunities in India. Until recently, most of the action was concentrated in hospitals. Today, capital seems to be moving deeper into the healthcare ecosystem, from speciality-care chains and fertility clinics to diagnostics manufacturers and medical technology companies. The result is a healthcare investment boom that is becoming one of the defining themes in Indian private equity.
