Dr Agarwal’s Healthcare raises Rs 270 crore from Temasek; to add 25 hospitals in next 15 months

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Published: February 14, 2019 5:17:10 AM

On the revenue target, Amar Agarwal said: “We are a Rs 500-crore company right now and will become a Rs 1,500-crore company after the expansion with 25% Ebitda margins.”

Temasek, apart from investments, will also bring in a lot of technology advancements through its investments in global hospitals, including in Verily Life Sciences

Global investment major Temasek has picked up a minority stake in Chennai-based eyecare hospital Dr Agarwal’s Healthcare (DAHCL) for Rs 270 crore.

Veda Corporate Advisors, a mid-market investment bank, advised the company on the transaction. Veda had also advised DAHCL on its previous round of investment from ADV Partners.

The investment from Temasek is Dr Agarwal’s third fund-raising — it had raised Rs 270 crore from ADV Partners in 2016 followed by a Rs 160-crore investment from Edelweiss (as debt) in the latter part of 2017, chairman and MD of Dr Agarwal’s group of eye hospitals Amar Agarwal said.

The company’s board will have an official from Temasek, he added.

Singapore-based Temasek has India accounting for around 4% of its $235-billion portfolio as on March 2018 and also other healthcare portfolios here which include investments in Medanta MediCity, Manipal Hospitals and HealthCare Global.

Talking to FE about the funding here on Wednesday, Amar Agarwal said: “We will continue to hold a majority stake in the company after these investments. Both ADV and Temasek will hold minority stakes. It’s a great endorsement for us as Singapore’s souvreign fund has decided to invest in us.” He, however, declined to comment on the exact stake sale to Temasek.

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“We are on an aggressive growth path. We now have 76 hospitals across India and abroad. In the next 15 months, we will be adding 25 hospitals to take it to 100 and then to 150 over the next five years,” the CMD said.

Dr Agarwal’s CEO Adil Agarwal said: “The expansion will be done through a mix of strategic partnerships, acquisitions and greenfield hospitals. Of the proposed addition, 65% of new hospitals will be brownfield and the rest will be greenfield.”

To a question, he said: “The eye care market potential is estimated to be $1 billion in India and being a focused company, Dr Agarwal will grow exponentially. We are on a strong foot.”

Temasek, apart from investments, will also bring in a lot of technology advancements through its investments in global hospitals, including in Verily Life Sciences, he added.

On the revenue target, Amar Agarwal said: “We are a Rs 500-crore company right now and will become a Rs 1,500-crore company after the expansion with 25% Ebitda margins.”

Meanwhile, ADV Partners co-founder Suresh Prabhala said: “ADV welcomes Temasek as a new partner in Dr Agarwal’s growth story and this investment will further strengthen the company’s leadership position in India’s eye care ecosystem.”

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