Religare seems to be quite a fiesty client for investment banks, landing a $700 million deal for Hospitals & Healthcare. As it is an opportune time to enter the market in India, it would seem pretty onerous on their part to buy 750 mn worth (at RS 40=1 USD) 24%  of Parkway for 14 hospitals. India's healthcare costs may be not so teep when translated into dollars, but hospital construction would in fact be cheaper anywhere else in Asia and 14 hospitals of even 300 beds each would have cos you only $600 million.. Here's the rest of the deal..Acc to the undependable ET, its now 62 hospitals and 10000 beds so, is it worth $10mn in revenue? Thw Wockhardt acquisition cost them $25 million odd, and there is enough cash for them to invest. What would be key is building a set of internationally accepted practices and using the deal to build management expertise and establish themselves in medical tourism and the pandemics that are so friendly to the area.

Posted via web from The investment blog on Post