Goldman Invests in BPL Medical Unit - Analyst Blog
May 14 2013 - 10:00AM
Zacks
Continuing with its investments
overseas, the private equity arm of The Goldman Sachs Group
Inc. (GS) came up with an investment of $20 million
(INR1.1 billion) in Bangalore-based BPL Medical Technologies, a
unit of Indian electronic products maker BPL Ltd., Reuters reported
on Monday. Through this investment, Goldman acquired 49% stake in
the medical unit.
BPL Medical primarily makes products such as ultrasound scanners
and fetal dopplers which are used to read the heartbeat of a fetus.
Through the funds invested by Goldman, the unit aims to expand
geographically as well as push its medical device business into
arenas such as imaging and neo-natal care.
Although global buyout firms have ongoing concerns about investing
in India as returns have fallen due to rupee depreciation, the
Indian healthcare sector is still attractive to private equity
firms. In 2012, private equity and venture capital investments in
India’s healthcare sector have surged rapidly to $1.2 billion
across 48 deals, according to research firm Venture
Intelligence.
Through this investment, Goldman targets to fund segments in the
healthcare sector and tap the existing growth potential to the
fullest. Moreover, this investment bank aims to share its leverage
in global healthcare expertise and therefore, partnered with the
medical unit of BPL group.
Goldman has vigorously invested in private equity in India. This is
the second consecutive investment by the company this month and the
third in the healthcare sector. In May, Goldman, holding a stake in
South Korean cable television firm C&M Co. Ltd. and Japanese
Internet service provider e-Access Ltd, endowed $110 million to
Indian cable television distribution company – DEN Networks
Ltd.
Previously, the company invested $115 million in Max India
healthcare and $40 million in Nova Medical Centers. Since 2006, the
firm put in more than $2 billion funds in India. On the
international level, it has come up with an investment of
approximately $8 billion in the healthcare sector, spread over more
than 30 companies.
Therefore, yielding returns on such investments will accelerate
Goldman’s profitability and boost investors’ confidence. Goldman
currently carries a Zacks Rank #2 (Buy). Other well performing
banks include JPMorgan Chase & Co. (JPM),
Fifth Third Bancorp (FITB) and State
Street Corporation (STT), all of which carry the same
rank.
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis Report
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