Punj Lloyd may sell its 17 per cent stake in Gurgaon-based multi-speciality Medanta Medicity Hospitals to the US-based private equity firm Kohlberg Kravis Roberts (KKR) for about ₹654 crore.

Industry sources said Punj Lloyd may be looking at selling its entire 17 per cent holding in Medanta to cut its debt.

A spokesperson of Punj Lloyd, however, said the company has no plans as of now to sell the stake.

KKR has been investing in healthcare space in India and has earlier invested $89 million in Apollo Hospitals.

In December 2013, Carlyle Group had bought 26 per cent stake in Medanta Medicity from US PE firm Aventus Capital for ₹960 crore, valuing the company at ₹3,550 crore.

Sources said KKR-Punj Lloyd deal may be happening at a valuation of ₹3,850 crore, implying a premium to the Carlyle-Aventus deal.

PE interest in healthcare space was last year highlighted by KKR investing in Gland Pharma, while Carlyle buying out Avenue Capital. Bain Capital has bought Blackstone’s stake in Emcure Pharma and IFC invested in Fortis Healthcare.

Medanta Medicity Hospital, co-promoted by cardiac surgeon Naresh Trehan and Sunil Sachdev who holds around 54 per cent stake, is spread over 50 acres and has a capacity of 1,250 beds and over 350 critical care beds and 45 operation theatres.

Punj Lloyd is a leading infra company that is divesting stake in its non-core assets to cut debt. Punj Lloyd is also expected to receive ₹1,000-crore settlement from ONGC relating to work it has undertaken with PT Sempec in January 2007.

Punj Lloyd is aiming at mobilising around ₹2,500 crore through asset sale and aggressively recovery in this fiscal, the sources added.