Singapore state investment firm Temasek Holdings has pumped Rs 270 crore ($38 million) into Dr Agarwal’s Health Care Ltd, as it continues with its quick pace of capital infusion in Indian companies after a hectic 2018.
The healthcare company will use the funds to expand its eye-care chain in India and upgrade its technology, its Mumbai-listed unit Dr Agarwal's Eye Hospital Ltd said in a stock market disclosure.
The announcement comes four months after VCCircle reported in October last year that Temasek was in advanced talks to invest in Dr Agarwal’s.
“We believe their (Temasek’s) expertise and support will help our company expand our network of clinics and operations to better meet the growing demand for affordable and quality eye care across India,” said Amar Agarwal, chairman, Dr. Agarwal’s Group of Eye Hospitals.
Adil Agarwal, CEO at Dr. Agarwal’s Group of Eye Hospitals, said the company aims to add around 50-75 hospitals in the next three to five years with a focus on both metro cities and smaller towns. The expansion will be done through a mix of strategic partnerships, acquisitions and greenfield hospitals, he added.
The company had last raised private equity money in February 2016 when it brought ADV Partners on board to let previous investor Evolvence India Life Sciences Fund exit, in what was primarily a secondary transaction.
In 2017, the eye-care chain raised structured debt from Edelweiss Special Opportunities Fund for expansion. The group said at the time it was raising debt capital to fund its expansion to avoid dilution of stake as it might have to raise equity funds in the future.
Veda Corporate Advisors advised Dr Agarwal’s on the latest transaction.
Temasek's investments in India
The Singapore state investor had a standout year in 2018 as it invested around $1.5 billion across sectors via a series of deals. The firm's biggest bet last year was backing Schneider Electric to acquire Larsen & Toubro Ltd’s electrical and automation business.
Last year, Temasek also invested in private equity firm TPG’s Asia Healthcare Holdings, which also bets on single-specialty hospitals.
Temasek’s healthcare investments in India include bets on hospital chain Manipal Health Enterprise Pvt. Ltd, multi-specialty hospital Medanta and oncology chain Healthcare Global Enterprises.