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India’s largest eyecare services provider Dr. Agarwal’s Health Care files DRHP for IPO

India’s largest eyecare services provider Dr. Agarwal’s Health Care files DRHP for IPO
Temasek Holdings and TPG-backed eye care services Dr. Agarwal Health Care has filed their draft red herring prospectus (DRHP) with the market regulator SEBI, to raise funds through an initial public offering (IPO).

The IPO with a face value of Re 1 per equity share is a mix of a fresh issue of up to Rs 300 crore and an offer for sale of up to 69,568,204 equity shares by the promoter and other selling shareholders. The offer also includes a subscription reservation for eligible employees.

The offer for sale consists of up to 2,253,913 equity shares by Dr. Amar Agarwal and up to 2,704,696 equity shares by Dr. Athiya Agarwal, up to 2,961,614 Equity Shares by Dr. Adil Agarwal, up to 5,242,630 equity shares by Dr. Anosh Agarwal, up to 230,035 equity shares by Dr. Ashvin Agarwal, up to 1,963,172 equity shares by Dr. Agarwal’s Eye Institute, up to 7,083,010 equity shares by Arvon Investments Private, up to 16,148,150 equity shares by Claymore Investments (Mauritius) Private, up to 30,755,592 equity shares by Hyperion Investments Private, up to 112,696 equity shares by Farah Agarwal, and up to 112,696 equity shares by Urmila Agarwal.

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of specified securities that shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.

The offer is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the net offer shall be available for allocation to non-institutional bidders, and not less than 35% of the net offer shall be available for allocation to retail individual bidders.

The proceeds from the fresh issue to Rs 195 crore for repayment/prepayment, in part or full, of certain of its borrowings; general corporate purposes, and unidentified inorganic acquisition.Dr. Agarwal Health Care’s revenue from operations increased from 30.86% from Rs 1,017.98 crore in Fiscal 2023 to Rs 1,332.15 crore in Fiscal 2024. Profit after tax for Fiscal 2024 stood at Rs 95.05 crore.The Indian eye care industry is projected to grow at a CAGR of 12% to 14% from the Financial Year 2024 to the Financial Year 2028. The size of the Indian eye care services industry was approximately Rs 37,800 crore in Financial Year 2024, and is projected to grow to Rs 55,000 crore – Rs 65,000 crore by the Financial Year 2028.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers, and KFin Technologies Limited is the registrar to the offer.

According to a CRISIL MI&A Report cited in its DRHP, the company held about 25% of the total eye care service chain market in India during FY 2024. It compares with ASG Hospitals and New Delhi Centre for Sight w.r.t geographic presence across India and Internationally.

Amongst the listed and unlisted peers, it had the largest eye care facilities in India, serving patients through 667 doctors. In FY 2024, the company treated 2.13 million patients and performed 220,523 surgeries.

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