ASG Eye Poised for ₹4,000 Cr IPO; Taps Top Global Banks

HEALTHCAREBIOTECH
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AuthorRiya Kapoor|Published at:
ASG Eye Poised for ₹4,000 Cr IPO; Taps Top Global Banks
Overview

ASG Eye Hospital, a leading Indian eye care chain backed by General Atlantic and Kedaara Capital, is preparing for a ₹3,000-4,000 crore initial public offering by FY27. The company has appointed Morgan Stanley, Axis Capital, HSBC, and Nomura to manage the listing, signaling robust investor appetite for the healthcare sector.

IPO Mandate

ASG Eye Hospital Private Limited is gearing up for a significant market debut, aiming to raise between ₹3,000 crore and ₹4,000 crore through an initial public offering. The company has enlisted the services of four prominent investment banks: Morgan Stanley, Axis Capital, HSBC, and Nomura, to guide it through the IPO process. This move targets a listing in the fiscal year 2027.

Ownership & Funding

The eye care giant is predominantly owned by private equity firms General Atlantic and Kedaara Capital. These firms, along with Foundation Holdings, control approximately 70% of ASG. A substantial investment of around ₹1,500 crore was made jointly by General Atlantic and Kedaara Capital in 2022 to secure a majority stake. Further capital infusions totaling ₹827 crore occurred in FY23 through convertible cumulative preference shares (CCPS), with additional funds from existing shareholders in FY25. The GA-Kedaara consortium also acquired a 15% stake from Investcorp during a secondary transaction.

Operational Snapshot

Founded in 2007 by Dr. Arun Singhvi and Dr. Shilpi Gang, ASG operates a widespread network of 180 clinics across 90 cities spanning 24 states. The company employs an asset-light operational model, primarily utilizing leased premises, which effectively manages capital expenditure. Its revenue is geographically diversified, though 64% of its FY24 standalone revenue originated from five key states: Rajasthan, West Bengal, Bihar, Madhya Pradesh, and Maharashtra. ASG reported ₹285 crore in standalone surgical revenue for FY24, driven by cataract procedures, followed by retina, LASIK, and other specialized treatments. In 2023, the company bolstered its southern presence by acquiring Vasan Eye Care's operations for ₹550 crore via an NCLT-approved resolution.

Market Environment

ASG's IPO plans coincide with a period of strong public market interest in healthcare services. Dr. Agarwal's Health Care Limited, backed by Temasek and TPG, successfully raised ₹3,027 crore in its January 2025 IPO, currently holding a market capitalization of approximately ₹15,363 crore. This demonstrates a healthy appetite for well-positioned healthcare entities.

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