A consortium of private equity funds General Atlantic Service Company, L.P. and Kedaara Capital Investment Managers Limited is likely to acquire a significant minority stake in ASG Hospital Pvt Ltd. (ASG Eye Hospitals), two people aware of the development told ET. The new investor group is likely to acquire about 49% in ASG for INR 11.80 billion ($150 million), valuing the company at about INR 24.00 billion. The round will see the exit of an existing investor, Pioneer Investcorp Limited (BSE:507864), which will sell its 15% stake, while around INR 8 billion will be invested as primary capital, said the people.

The new money will help ASG acquire Vasan Eye Care's network and revive the once-premier institution of eye care hospitals in the country. At present, promoters of ASG hold an about 48% stake, while the rest is held by Investcorp, Foundation Holdings and Symphony International Holdings Limited (LSE:SIHL). ICICI Securities Limited (NSEI:ISEC) is advising ASG for the stake dilution.

Mails sent to GA, Kedaara, Investcorp and ASG Eyecare did not elicit any responses till press time June 29, 2022. ET reported last month that top buyout funds including General Atlantic were the contenders to acquire the stake in ASG.