New Delhi, April 14 -- Ujala Cygnus, a regional hospital chain operator backed by private equity firm General Atlantic, said Monday it has agreed to acquire a "significant stake" in Punjab-based Amandeep Hospitals.
The acquisition marks Ujala Cygnus' entry into Punjab's healthcare market, the company said in a statement, underscoring the importance of the move.
The announcement comes nearly six months after VCCircle first reported that Ujala Cygnus was in advanced talks to acquire Amritsar-based Amandeep Hospitals Group to gain a foothold in the region.
While the financial terms of the transaction were not disclosed, VCCircle had earlier reported that the deal was likely to be valued between Rs 400 crore and Rs 500 crore.
Founded in 1990 by Dr. Amandeep Kaur and Dr. Avtar Singh, Amandeep Hospitals specializes in orthopaedics, cosmetic surgery, anaesthesia, oncology, neuro and spine surgery, joint replacement, and general medicine, among other fields. It operates five multi-super-specialty hospitals with over 800 operational beds.
Amandeep Hospitals reported consolidated net sales of Rs 204 crore for the year ended March 2024, up from Rs 170.4 crore the previous year. Its consolidated profit after tax rose to Rs 14.17 crore from Rs 8.8 crore, according to VCCEdge.
With the latest addition, Ujala Cygnus will expand its network to 28 hospitals and increase its total bed capacity to nearly 2,800 beds. The five newly added hospitals are located in Amritsar, Pathankot, Firozpur, and Srinagar.
Looking ahead, the combined group plans to deepen its presence in Punjab by exploring new facilities in Ludhiana, Jalandhar, Patiala, and the Tricity region. The Tricity region comprises the union territory of Chandigarh, Mohali in Punjab and Panchkula in Haryana. It also aims to scale up services in tertiary and quaternary care, the company said.
Founded in 2011, Ujala Cygnus operates hospitals across Tier-II and Tier-III cities in Haryana, Uttar Pradesh, Uttarakhand, Jammu and Kashmir, and Delhi. The chain offers services across more than 30 specialties, including nephrology, oncology, urology, gastroenterology, orthopaedics, and reconstructive surgery. It has a team of over 300 doctors and medical experts.
For the year ended March 2024, Ujala Cygnus reported consolidated net sales of Rs 581.3 crore, up from Rs 435.2 crore the year before. Its consolidated profit after tax declined to Rs 5.4 crore from Rs 6.2 crore, according to VCCEdge.
General Atlantic picked up a controlling stake in Ujala Cygnus in April 2024, providing a full exit to its early investors, including Eight Roads Ventures, Somerset Indus Capital, and Evolvence Capital.
Published by HT Digital Content Services with permission from VC Circle.