Dr. Agarwal’s Healthcare Raises Rs. 215 Crore From CDC Group

Dr Agarwal’s Health Care Ltd (DAHCL) has raised Rs 215 crore from CDC Group. The money will support the company’s Rs 500-crore investment plan to double its network. The eyecare chain is considering going public.

With the funding, CDC Group will get a seat in the company’s board.

Amar Agarwal, Chairman of Dr Agarwal’s Group of Eye Hospitals, said that the company decided to raise the money in the form of structured debt to avoid dilution in equity.

Before this investment, the company was debt free and had raised over Rs 540 crore from Temasek and ADV Partners. Market experts had earlier valued the company at around Rs 2,500 crore, which was expected to double once the proposed expansion takes place.

The 63-year-old Chennai-based chain currently has around 90 hospitals, including 14 in Africa. The company plans to increase it to 150 in the next three years. The expansion will be done through organic, inorganic and partnership routes. The company has tied up with Advanced Eye Institute to enter the Mumbai market and set up two greenfield projects in Pune. In the next three years, the company plans to open around 10 centers in Maharashtra, followed by hospitals in Kerala and Madhya Pradesh. The next phase of expansion outside India would be in South Asia, SAARC and Europe.

Srini Nagarajan, Managing Director and Head of Asia, CDC Group said, “Our 70 years’ plus track record of investing responsibly across Asia and Africa will help drive Dr Agarwal’s Group’s expansion plans. Furthermore, we will share our broad healthcare sector experience with this ambitious management team, helping to bring eyecare to many people in India, Africa and beyond. We look forward to embarking on a prosperous relationship with Dr Agarwal’s Group.” Veda Corporate Advisors, a leading mid-market investment bank advised the company on the transaction.

The group is planning to close the year with around Rs 600 crore revenue and expects it to double in the next three years. The company generates 20-25 per cent of its revenue from adjacent business including pharmacy and optical.-Business Standard