ChrysCapital, a domestic PE fund, is set to invest up to Rs 830 crore in New Delhi’s Centre for Sight (CFS), a leading eye care chain, partly acquiring Mahindra Holdings Limited’s stake. The investment aims to bolster CFS’s expansion across India’s Tier 1 and 2 cities. CFS, founded in 1996, operates 83 centers across 15 states/UTs and 39 cities, expecting revenue of Rs 515 crore in FY24.

The homegrown PE fund ChrysCapital will invest up to Rs 830 crore ($100 million) in New Delhi Centre for Sight (CFS), one of India’s leading eye care chain, said a company statement. This transaction involves a mix of primary infusion and purchase of the entire stake held by Mahindra Holdings Limited (MHL), a wholly owned subsidiary of Mahindra & Mahindra Limited.

This investment will support CFS’s ability to further scale and serve the growing demand for eye care in India both across Tier 1 & tier 2 cities, it said.

ChrysCapital is in final discussions to acquire a significant minority stake in New Delhi Center for Sight Ltd, valuing the chain at Rs 1600 crore, ET first reported in December. Chryscap’s proposed investment worth Rs 800-1000 crore ($100 mn) will give an exit to Mahindra Partners, the private equity arm of Mahindra & Mahindra, which owns about 32% stake in the chain, said the ET report.

At present, Dr. Mahipal S. Sachdev, the founder chairman of Centre for Sight is the majority stakeholder with about 55% stake in the chain while about 10% stake is given under ESOP.

Founded in 1996, CFS, is amongst the top three organized eye care chains in India, with an established pan-India presence particularly in North India, with an annual footfall of 1.5 million. Company has a footprint of 83 centers across 15 states / UT’s and 39 cities including Delhi, Gujarat, Rajasthan, and Telangana as of March 2024.

Centre for Sight is expected to post a revenue of Rs 515 crore with an EBITDA of Rs 105 crore in FY24, said sources. The company, which got SEBI nod for listing in 2016, had dropped its Rs 115-cr IPO plans in 2017.

CFS offers eye care services, including cataract surgery, LASIK and Smile treatments, treatments for retinal issues and glaucoma, oculoplasty, as well as paediatric eye care. CFS has an industry leading surgical mix in revenue of approximately 70%, best in class in the Indian eye care industry, said the statement.

“ChrysCapital is very excited to partner with Centre For Sight, which has exhibited robust growth while maintaining strong profitability. We look forward to working with the team and strengthen CFS’s position as one of the leading healthcare delivery platforms in India,” said Raghav Ramdev, Managing Director, ChrysCapital.

“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 Company’s growth plans of strengthening its leadership position,” said Dr. Mahipal Sachdev, Chairman and Founder of Center For Sight.

The eyecare industry in India, which treats major diseases such as cataract, glaucoma, retina and squint, is valued at around Rs 11,000 crore. However, the organised players enjoy less than 10% market share while the rest is held by regional or smaller specialised eye care hospitals. About 62 million people in India are estimated to be visually impaired, with 8 million being afflicted with blindness, according to the Lancet Global Health Commission’s report.

Source: https://economictimes.com/news/