General Atlantic-backed ASG Eye Hospital eyes ₹2,000 crore investment for expansion by 2030

General Atlantic and Kedaara Capital-backed eyecare chain ASG Eye Hospital plans to invest ₹1,500-2,000 crore by 2030 to expand its footprint in small cities, signalling growing penetration of organised players in India’s eyecare market.

The Jodhpur-headquartered hospital chain has over 175 hospitals and 200 vision centres, or clinics, across more than 95 cities in India. It is planning to grow its clinics to 600-700 in the next four years, through a mix of organic and inorganic expansion, even as it eyes a potential public listing in the next 12-18 months.

The company is targeting 8-10 hospital acquisitions annually, 5-7 organic multispecialty centres and 100 district clinics each year, the company’s management told reporters at a press briefing on Thursday.

The eyecare chain signed a binding agreement to merge with Sharp Sight Eye Hospitals earlier this week. The company is actively scouting for new assets, its chief executive officer and managing director Dr. Arun Singhvi said.

“Everybody wants to sell. We want to partner with [someone] who wants to grow,” he said.

IPO plans

The expansion will be funded through internal accruals, debt, and through a capital raise of about ₹1,000 crore, said Dr. Singhvi. “Probably in the next 12 months we will have a public offering or a private placement with us,” he said.

Bloomberg reported last week, citing sources, that ASG was eyeing a $391 million ( ₹3,500 crore) initial public offering, with a targeted valuation of $2.6 billion next year. The share sale is expected to dilute about 15% of the company’s equity and will include a fresh issue and an offer for sale by existing investors, according to the report.

India's single-specialty eyecare chains are attracting investor interest, as the organised market grows. Rival eyecare chain Dr Agarwal’s Health Care Ltd listed on the bourses in January this year, raising ₹3,027.26 crore, consisting of a fresh issue of ₹300 crore and an offer for sale of ₹2,727.26 crore. Since listing, the company has attained a market capitalisation of ₹15,875 crore and is trading at a price to earnings ratio of 138.40.

Quadria Capital-backed Maxivision Super Specialty Eye Hospitals is also eyeing a public listing in 2027, the company’s promoter and chairperson G.S.K. Velu had previously indicated.

ASG had raised ₹1,500 crore from General Atlantic and Kedaara Capital in 2022, after which it acquired south India-based eyecare chain Vasan Eye Care in 2023.