GIC acquires majority stake in Asia Healthcare Holdings with $150 million investment

Mumbai: Singapore sovereign fund GIC will invest an additional $150 million in Asia Healthcare Holdings (AHH) ahead of a potential initial public offering (IPO). The investment will make GIC the largest shareholder in AHH, and follows GIC’s first investment of $170 million in the platform in February 2022.

The investment will likely value AHH at $800-900 million, according to a person aware of the development.

With the latest transaction, global private equity firm TPG will transition to a minority stakeholder in the healthcare platform, and GIC will hold the majority stake, according to the healthcare platform's release on Wednesday.

AHH, which owns Motherhood Hospitals, Asian Institute of Nephrology and Urology and Nova IVF, is a healthcare platform focused on single specialty hospitals, which was majority-owned by TPG.

“With this investment, the plan is to continue to grow the specialties that we have invested in, which is the mother and child space, the IVF space, and the urology and nephrology space,” Vishal Bali, executive chairman, AHH, told Mint. “We will continue to look at other opportunities in the single specialty area,” he added. 

Mint first reported about the investment on 5 December. TPG, which has invested in AHH through TPG Growth, its equity investment arm, is selling some of its stake to return cash to its investors. 

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“As a long-term investor, we are confident in India’s single specialty healthcare sector, which has strong tailwinds for growth driven by increasing per capita income, urbanization, high awareness of specialty care, and improved supply of high-quality clinics. AHH’s potential to expand into newer sub-segments positions it well for continued success,” Choo Yong Cheen, chief investment officer of private equity, GIC, said in the release.

To date, AHH has invested about $300 million across hospital chains in oncology, mother and child care, urology and nephrology, and IVF and fertility. The $150 million investment from GIC will also fuel its expansion into new specialties such as gastrointestinal, and diagnostics and pathology, Bali said. 

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The platform will continue expanding its existing verticals into tier 2 cities. “This is a play which is pan-India, and which is both in metros and tier 2 cities.

Bali declined to share details on when the platform plans to start its IPO process but said, “Ahead of an IPO listing, which is likely in the next few years, profitability is not a concern for AHH.” 

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