Warburg Pincus to infuse Rs 1,500 cr in MedPlus

Monday, 21 Dec 2020

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Warburg Pincus is in advanced talks to invest Rs 1,500 crore in MedPlus for a significant minority stake.

A mix of debt and equity will be used to pay off existing lenders such as Goldman Sachs and Edelweiss and also offer liquidity to smaller shareholders of the company.

In January 2018, MedPlus raised around USD 115 million in debt financing from Goldman Sachs to buy out its investors, including US-based Mount Kellett Capital Management, TVS Capital Funds and Ajay Piramal’s India Venture Advisors. The three investors together held 69 percent stake in MedPlus.

Later, PremjiInvest picked up a minority stake for around Rs 200 crore and did a follow-on investment of around Rs 100 crore.

PremjiInvest will continue to remain invested in the company with around 18 percent stake and may also participate in this round while Warburg Pincus will become the single largest shareholder.

The final documentation is underway and expected to get signed soon.