Mumbai: ChrysCapital is in advanced talks with Dr Agarwal’s Health Care Ltd to acquire a minority stake for about Rs 200-250 crore, according to a recent media report.
Currently, Dr Agarwal’s Health Care owns about 71.75 percent in the listed entity and has 75 eye care centers, out of which 61 are in India and 14 in Cambodia, Ghana, Mauritius, Mozambique, Nigeria, and Rwanda.
Dr Agarwal’s Eye Hospital Ltd will use the funds to expand the eye care chain in new markets. Investment bank Veda Corporate Advisors has been signed up by Dr Agarwal’s promoters.
A person knowing about the matter told ET, “ChrysCapital has signed an exclusivity agreement and the discussions moving to an advanced stage.”
In 2016, ADV Partners, a Hong-Kong based private equity fund had invested $45 million in the company which makes Evolvence India Life Sciences Fund to exit that had acquired a minority stake for Rs 60 crore in 2012 in the company.
Dr Agarwal’s raised Rs 160 crore through a structured debt arrangement from Edelweiss Special Opportunities Fund II in July last year.
Adil Agarwal, the CEO of Dr Agarwal’s Eye Hospital Ltd told ET, “We are in the process of raising growth capital to meet our expansion plans and talks are on with several private equity players.”
It has been reported that the firm is planning to enter new markets in south India and open 50 centers in next two-three years.
Medical Dialogues had reported in April this year that Mankind Pharma had agreed to sell its 10 percent stake to ChrysCapital and its global sponsors for about $350 million, or Rs 2,280 crore.
In March 2018, ChrysCapital had made a surprise bid and snatches the deal from global rivals Advent International and Carlyle Group.