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SAHRUDAYA HEALTH CARE PVT. LTD. (2017): ...

Ramana Sonti, Lali...

Case

SAHRUDAYA HEALTH CARE PVT. LTD. (2017): TOWARDS A TERM SHEET

Ramana Sonti; Lalita Anand

ISB311 | Published March 24, 2022 | 25 pages Case

Collection: Indian School of Business

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Learning Objectives

In 2017, Sahrudaya Healthcare Pvt. Ltd. (SHPL), a successful chain of corporate hospitals based out of Hyderabad, India, approached private equity (PE) firm Samara Capital for a capital infusion. After conducting a thorough due diligence and evaluation of the company, Samara Capital brought its major limited partner (LP) Medicover, a European multinational healthcare and diagnostics company, into the decision-making process. In a surprise turn of events for SPHL, Medicover offered to become a strategic partner and invest in SPHL. With the new proposal on the table, top executives from Samara Capital, Medicover, and SHPL attended a high-level meeting in New Delhi to discuss the modalities of the term sheet.

• To introduce students to the concepts of raising capital via private equity with attendant risk and return. • To examine a full range of financing alternatives (invoking the pecking order theory, namely internal accruals, angel financing, venture capital financing, debt, private equity, etc. • To attempt firm valuation. • To draft a term sheet by assessing the various terms and conditions under which an investment is to be made