Singapore wealth fund GIC takes minority stake in Vasan Healthcare for Rs498 crore

Singapore's sovereign wealth fund, Singapore Investment Corp. Pte Ltd (GIC), has acquired minority stake in eye care hospital chain Vasan Healthcare Pvt. Ltd, for $100 million (Rs498 crore).

Without disclosing the stake size, Vasan Healthcare, which operates 102 eye care hospitals and 14 dental treatment centres in 11 states, said that it would use the funds to expand in new geographies and make acquisitions.

GIC, which manages around $300 billion in assets and also invested in Fortis Healthcare, joins Sequoia Capital and Westbridge Capital as an investor in Vasan Healthcare. GIC will be offered one seat on the company's board.

Chennai-based Vasan had earlier raised $50 million from Sequoia and Westbridge in three rounds. 

Vasan, which had revenues of Rs500 crore last fiscal, is poised to acquire four private practices this week, one each in Bangalore, Hyderabad, Delhi and Mumbai.

The investment in Vasan Healthcare reflects the increasing interest by overseas investors in the Indian healthcare industry.

Private equity firms have seen the healthcare sector in India as lucrative segment for investment having invested $1.68 billion across 41 transactions in 2010, but fell to nearly $320 million in 26 healthcare deals in 2011 due to the global economic slowdown, according to VCCEdge, which tracks M&A activity.