Upcoming IPO: Leading eyecare services provider Dr Agarwal Health Care has decided to go public as the company has filed its draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
Dr Agarwal Health Care comprises a fresh issue of shares worth around Rs 300 crore and an offer for sale with promoters and other shareholders offloading up to 69,568,204 shares with a face value of Re 1 each.
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As per the DRHP papers, the offer for sale consists of up to 2,253,913 equity shares by Dr Amar Agarwal, up to 2,704,696 equity shares by Athiya Agarwal, up to 2,961,614 equity shares by Adil Agarwal, up to 5,242,630 equity shares by Anosh Agarwal, up to 230,035 equity shares by Ashvin Agarwal, up to 1,963,172 equity shares by Agarwal’s Eye Institute, up to 7,083,010 equity shares by Arvon Investments, up to 16,148,150 equity shares by Claymore Investments (Mauritius), up to 30,755,592 equity shares by Hyperion Investments, up to 112,696 equity shares by Farah Agarwal, and up to 112,696 equity shares by Urmila Agarwal.
Dr Agarwal Health Care said that, in consultation with the book-running lead managers, it may consider a pre-IPO placement of specified securities that shall not exceed 20 per cent of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The company proposes to utilise the net 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.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors are the book-running lead managers, and KFin Technologies is the registrar to the offer.
About Dr Agarwal Health Care
Dr Agarwal Health Care is a leading eyecare services provider company in India, which offers a wide array of services including cataract, refractive, and other surgeries, consultations, diagnosis, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care-related pharmaceutical items.
According to a CRISIL MI&A Report cited in its DRHP, the company held about 25 percent of the total eye care service chain market in India during FY 2024.
As of March 31, 2024, its Indian network included 26 hubs (Tertiary Facilities, including three COEs) and 139 spokes (35 Primary and 104 Secondary Facilities). Internationally, it began operations in 2012 and had 15 facilities spread across nine African countries.
