India-focused private equity firm will invest up to $100 million in New Delhi-headquartered eye care chain, Centre for Sight (CFS), in a mix of primary and secondary transaction. The private equity firm will now hold significant minority stake in the eye care chain.
As part of the deal, ChrysCapital has acquired the entire stake held by Mahindra Holdings Limited, a wholly owned subsidiary of Mahindra & Mahindra Limited. The entity had invested Rs 206.5 crore in CFS in 2019.
CFS will utilise the fresh capital to scale its network across Tier I and II cities, up from 83 centres across 39 cities it has a presence in.
Founded in 1996 by ophthalmologist and Padma Shri awardee Dr Mahipal Sachdev, CFS offers eye care services and surgeries. It operates 15 centres and 13 vision stores in Delhi-NCR.
“I am delighted and excited to welcome ChrysCapital, one of the most sought-after investors, as a valued partner in the next phase of growth of the business. ChrysCapital’s investment is an endorsement of Centre For Sight’s capabilities and will also provide impetus to the company’s growth plans of strengthening its leadership position,” said Dr Mahipal Sachdev, Chairman and Founder at CFS in a statement issued by the company.
CFS competes with the likes of General Atlantic and Kedaara Capital-backed ASG Eye Hospitals, among others.
This also adds to ChyrsCapital’s bet in the healthcare and pharma space. The firm which recently announced the final close of its $700 million Continuation Fund had invested $70 million in pharmaceutical company, La Renon.
“The healthcare sector in India is key area focus for ChrysCapital given the significantly underserved market and the potential for share gain for organized players. ChrysCapital is very excited to partner with Centre For Sight, which has exhibited robust growth while maintaining strong profitability,” said Raghav Ramdev, managing Director at ChrysCapital.
Alvarez & Marsal advised ChrysCapital in the commercial and financial diligence while o3 Capital acted as the exclusive financial advisor for the transaction. SAMCO acted as legal counsel to ChrysCapital, while IndusLaw advised Mahindra Group and DMD Advocates worked with the company and promoters.
Edited by Affirunisa Kankudti
