ASG Eye Hospitals, backed by private equity firms General Atlantic and Kedaara Capital, has signed a Rs 450 crore non-binding merger deal with Sharp Sight Eye Hospitals, said people familiar with the matter.
The deal, which would be executed through a cash and stock payout, pegged the value of unlisted ASG, founded by former AIIMS doctor duo Arun Sinhgvi and Shilpi Gang, at Rs 7,000 crore, the people said.
Sharp Sight founder Samir Sud and the company’s management team will get shares of ASG in lieu of their existing shareholdings in Sharp Sight, as part of the deal, the people said, adding InvAscent, a PE investor in Sharp Sight, will get cash. They did not disclose the shareholding of Sharp Sight.
Jodhpur-headquartered ASG runs 170 centres pan-India. Delhi-headquartered Sharp Sight has 17 facilities and apart from north India, it also has a presence in Jharkhand, Bihar, West Bengal, and Tripura in the East.
ASG Eye Hospitals is also planning an initial public offering tracking the successful listing of peers such as Dr Agarwal’s Healthcare. The Sharp Sight management team could potentially monetise their ASG shares during the IPO.
Sharp Sight founder Samir Sud and ASG founder Arun Singhvi did not respond to ET’s queries. InvAscent founder Hari Buggana declined to comment.
US’ investment bank Lincoln International is advising on the merger.
The ASG-Sharp Sight deal puts the spotlight back on the steady merger and acquisition activity in the eye care hospital space marked by large capital deployment by PE investors to create organised eye care chains. The sector is seen as largely unorganised and dominated by family-run clinics.
SharpSight chief executive officer Deepshikha Sharma informed certain employees about the impending merger on 25 September, said the people cited above. She was unavailable for comment.
ASG Eye Hospitals raised Rs1,500 crore in funding from General Atlantic and Kedaara Capital in 2022. The two PE firms are believed to have acquired around 46% stake in the company at the time. Following the fundraise, ASG acquired south India-based Vasan Healthcare in 2023, adding 150 hospitals to its network and becoming a pan-India player.
PE investors have similarly funded similar expansionist moves by other eye care hospital chains that are seeing a big market for cataract surgeries and vision correction treatments in India.
Chennai-based eye care chain Dr Agarwals raised Rs 1,050 crore from US’ TPG and Singapore’s Temasek in July 2022. The two funds quickly topped up that investment with a Rs 650-crore infusion in August 2024. The company went public earlier this year and is valued at around Rs. 15,000 crore.
Delhi-based Centre for Sight with nearly 100 eye hospitals spanning north, east, and certain states in west India, raised Rs 830 crore from ChrysCapital by selling a minority stake last year.
Also, Singapore-headquartered Quadria Capital picked up a Rs 1,300 crore stake in eye care chain Maxivision in July 2023.
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