NE BUSINESS BUREAU
CHENNAI, JAN 25
Dr Agarwal’s Health Care Limited, a trusted brand in the eye care services industry and according to the CRISIL MI&A Report is India’s largest eye care service chain by revenue from operations for FY2024, has on Friday fixed the price band of ₹382 to ₹402 per Equity Share of face value ₹1/- each.
- The company aims to raise ₹3,027.26 crore from its public issue, a mix of fresh shares and offers for sale (OFS)
- The book build issue will remain open until 31 January 2025
- Investors can bid for a minimum of 35 Equity Shares and in multiples of 35 Equity Shares thereafter
The Initial Public Offering of the Company will open on Wednesday, January 29, 2025, for subscription and close on Friday, January 31, 2025. Investors can bid for a minimum of 35 Equity Shares and in multiples of 35 Equity Shares thereafter. The issue has an employee reservation portion of up to 1,579,399 equity shares and shareholders reservation of up to 1,129,574 equity shares.
The company aims to raise ₹3,027.26 crore from its public issue, a mix of fresh shares and OFS. ₹300 crore is aimed at issuing fresh shares, whereas the rest, ₹2,727.26 crore, is an offer of sale up to 67,842,284 equity shares reserved for the OFS route.
The proceeds from its fresh issuance to the extent of ₹195 crore will be utilized for repayment/ prepayment in part or full of certain of its borrowings; and the balance proceeds will be utilized for general corporate purposes and unidentified inorganic acquisitions.
Dr. Agarwal’s Health Care, provides end-to-end comprehensive eye care services, including cataract, refractive and other surgeries; consultations, diagnoses and non-surgical treatments; and sells opticals, contact lenses and accessories, and eye care related pharmaceutical products through its network of 209 Facilities as of September 30, 2024. According to a CRISIL MI&A Report cited in its red herring prospectus, the company held about 25% of the total eye care service chain market in India as of FY2024.
As of September 30, 2024, the Company operates 193 facilities in India across 117 metro and non-metro cities spanning 14 states and four union territories, along with 16 facilities spread across nine countries in Africa. The Company operates through a hub-and-spoke and asset light operating model. According to the CRISIL MI&A Report, the Company has a diversified presence, with 70 facilities located in Tier-I cities and 123 facilities in other cities across India.
Dr. Agarwal’s Health Care, under the aegis of its Chairman, Dr. Amar Agarwal, who has over 35 years of clinical experience in the eye care services industry, has pioneered multiple surgical innovations in ophthalmology and has published several papers in reputed scientific journals globally. Some key surgical capabilities of Dr. Agarwal’s Health Care includes intraocular lens procedures, cornea transplantation, pinhole pupilloplasty, single pass four-throw pupilloplasty and LASIK surgeries.
The Issue is being made through the book-building process, wherein not more than 50% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% and 35% of the offer shall be available for allocation to non-institutional investors, and retail individual bidders respectively.
At the press conference announcing its IPO plans, the company also confirmed its intention to merge its listed subsidiary, Dr Agarwal Eye Hospital, with the parent company through a share swap within the next 12 months.
“The merger is a strategic step to consolidate operations under one umbrella, streamline management, and maximise efficiency. While we’ve set an outer timeline of three years, we aim to complete this within the next 12 months via a share swap. Post-merger, our focus will remain on scaling our presence across India and Africa, driving innovation in treatments, and leading the consolidation of the fragmented eye care market to build a foundation for sustainable growth,” stated Dr Adil Agarwal, CEO and a member of the Board of Directors of Dr Agarwal’s Health Care.
The book build issue is proposed for listing on the BSE and the NSE.
Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Jefferies India Private Limited, Motilal Oswal Investment Advisors Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.
