General Atlantic and Kedaara Capital have invested ₹1,500 crore in ASG Eye Hospitals in one of the largest private equity deals in eye care in India.
General Atlantic and Kedaara Capital are together buying a 46% stake, which involves both primary and secondary transactions.
The two PE firms will join existing operations-focused healthcare investor Foundation Holdings in ASG.
The deal is expected to pave the way for the exit for Investcorp, which had invested in the company in 2017, and will help fund its expansion plans, ASG said.
Over the last three years, ASG has doubled its number of hospitals and tripled revenue. It has more than 50 specialty eye hospitals across 16 states in India, as well as in Uganda and Nepal. The chain plans to establish a network of more than 200 hospitals within the next 36 months.
ASG is also awaiting the bankruptcy court’s approval to take over Vasan Eye Care, which will give it a strong presence in South India. In February, ET reported that lenders of Vasan Eye Care had approved ASG’s Rs 520 crore proposal to acquire the debt-ridden chain Vasan Eye Care under the bankruptcy law.
ASG was founded in Jodhpur, Rajasthan by ophthalmologists Arun Singhvi and Shilpi Gang.
“This cornerstone investment is a testament to the strength of our business model…,” Singhvi, who is its chairman and managing director, and Gang said in a news release.
“With the imminent planned acquisition in South India and our high-quality M&A pipeline of regional players spanning key markets across the country, we are excited to welcome and partner with two highly regarded and forward-thinking investors at this transformational inflection point in the history of ASG Eye Hospitals,” said Aakash Sachdev, cofounder and managing director of Foundation Holdings.
According to Lancet Global Health Commission’s report on global eye health, 62 million people in India are estimated to be visually impaired, with 8 million being afflicted with blindness. Cataract and diabetic retinopathy are the major causes of ocular morbidity and blindness if not treated in time.