New Delhi, Aug. 13 -- Singapore state investor Temasek and US private equity firm TPG have pulled out more money from a common healthcare portfolio company in India, a year and a half after first monetising part of their investments.

The two firms, among the most active PE-style investors in India, have sold a big chunk of their stakes in Mumbai-listed Dr Agarwal's Health Care Ltd via open market transactions for a total of Rs 2,008 crore ($210 million), according to stock-exchange data.

ICICI Prudential Mutual Fund, Invesco Mutual Fund and an Allianz fund were among the buyers. The deal comes amid a broader recovery in Indian stocks after a period of volatility after February due to the US-Iran war.

Temasek and TPG have been infusing capital into the company since 2019 through several rounds. Temasek initially invested Rs 270 crore in the company through an affiliate in early 2019. Three years later, Temasek and TPG invested another Rs 1,065 crore via a primary infusion and secondary purchase of shares. TPG led this round with an investment of Rs 825 crore with Temasek chipping in with around Rs 240 crore.

The two investors doubled down on Dr Agarwal's Health Care in 2023, investing a total of about Rs 640 crore. TPG led the round again, putting in Rs 400 crore while Temasek invested Rs 240 crore. Temasek's investments in 2022 and 2023 were through another affiliate.

Dr Agarwal's Health Care debuted on the stock market in February 2025, paving the way for Temasek and TPG to offload a portion of their stakes and generate multi-bagger returns. The eyecare chain also raised Rs 300 crore by selling fresh shares.

TPG held a 23.09% stake in the Chennai-based eye-care chain at the end of June while Temasek held a 20.06% stake through two entities.

In the latest share sales this week, TPG mopped up around Rs 1,210 crore and Temasek pocketed Rs 797.4 crore. After the share sale, the two investors collectively own around a 30% stake in the company.

The exit has helped TPG realise an internal rate of return (IRR) of around 40% and a multiple on invested capital (MOIC) of 4.2-4.3x in rupee terms, according to VCCircle estimates using the first-in, first-out method. In dollar terms, its IRR would be around 37% in the latest tranche.

Overall, the PE firm has realised an MOIC of 4.2x on the stake sold so far and an IRR of 53-54% in rupee terms thanks to a higher annualised return at the time of the IPO, the estimates show.

Meanwhile, the Temasek entity generated an IRR of 34% and an MOIC of almost 9x on a first-in, first-out basis in the latest tranche in rupee terms, VCCircle estimates show. In dollar terms, the IRR would be around 29%.

Overall, the Temasek entity has so far realised an annualised return of around 37% and an MOIC of 8x in rupee terms.

The two investment firms are handily beating the 20% benchmark that private equity firms typically chase in local currency terms and 15% in dollar terms.

Published by HT Digital Content Services with permission from VC Circle.