CHENNAI-BASED Deepam Hospital group is looking to acquire of hospitals of medium size and is keen to undertake joint venture plans to fuel inorganic growth. The healthcare group is also planning to raise Rs 30 crore by diluting 16-20 per cent of stake, according to its director Dr CJ Vetrievel.

Funds will be raised through a combination of equity dilution and fully or partially convertible debt.

“We have not yet closed our first funding issue, but are growing organically. In the last few months, we have redefined our funding strategy and are on the lookout for Rs 30 crore funding to fuel our expansion plans,” Vetrievel said.

The company will look at acquiring hospitals with 3550 beds at an investment of Rs 5-10 crore per unit. “The acquisitions will be in south Chennai where we are looking at completing our first cluster. We are in discussions currently and will be in a position to close the

transaction once funding is in place," Vetrievel said.

Deepam Hospital has a unique shareholding pattern ­­ more than 150 doctors hold over 95 per cent of the total stake in the company.

The 200-bed hospital group will add 450-500 beds in the financial year 2011. It is currently awaiting statutory approvals for a new 200-bed tertiary care hospital in Chennai. The comapany is investing Rs 54 crore in the project.