Dr Agarwal's Health Care Files INR 3,000 Cr IPO

Financially, the company reported revenue of INR 1,332.15 Cr in FY 2024, with a profit after tax standing at INR 95.05 Cr.

Dr Agarwal's Health Care, a leading eye care services provider, has filed its draft papers with SEBI to launch an initial public offering (IPO) aiming to raise INR 3,000-3,500 Cr.

The IPO will comprise a fresh issue worth up to INR 300 Cr, along with an Offer for Sale (OFS) of 6.95 Cr equity shares by promoters and key shareholders, including Arvon Investments, Claymore Investments (Mauritius), and Hyperion Investments.

According to the draft red herring prospectus (DRHP), proceeds from the fresh issue will primarily go towards debt repayment, corporate purposes, and potential inorganic acquisitions.

Sources estimate the total IPO size to be within the INR 3,000-3,500 Cr range.

Dr Agarwal's Health Care is renowned for its comprehensive eye care services, including cataract and refractive surgeries, consultations, and diagnostics, as well as non-surgical treatments.

The company also sells optical products, contact lenses, and eye care-related pharmaceutical items. As per CRISIL MI&A's report, the firm held a 25% share of India’s eye care service chain market in FY 2024.

By the end of March 2024, Dr Agarwal's Health Care operated 180 facilities, with 165 located in India, primarily concentrated in South Indian cities such as Chennai, Hyderabad, and Bengaluru.

Financially, the company reported revenue of INR 1,332.15 Cr in FY 2024, with a profit after tax standing at INR 95.05 Cr.

The IPO is being managed by Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors as the book-running lead managers.

Recent IPOs in the Healthcare Space

Last month, Influx Healthtech filed preliminary papers with NSE Emerge to raise funds through an initial public offering (IPO) to support its expansion plans.

The IPO consists of a fresh issuance of 46.32 Lakh equity shares and an Offer for Sale (OFS) of up to 13.68 Lakh equity shares by founder Munir Abdul Ganee Chandniwala.

In August, Paras Healthcare, operating under the 'Paras Health' brand, filed draft papers with market regulator SEBI for an initial public offering (IPO) to raise funds.

The IPO was a combination of a fresh issue of equity shares worth up to INR 400 Cr and an offer for sale (OFS) of up to 1.5 Cr shares, with a face value of INR 1 for each equity share, according to the draft red herring prospectus (DRHP).

The OFS included promoter Dharminder Kumar Nagar selling 29.28 Lakh equity shares and investor Commelina Ltd divesting 1.2 Cr shares.

Earlier, Akums Pharma debuted in the Stock Market with its IPO being fully subscribed on Day 1. The IPO, which opened on Tuesday with a price band of INR 646-679, saw a subscription rate of 1.37 times by the end of Day 1.

The proceeds from the fresh issue will be allocated towards repaying or prepaying debt, funding incremental working capital requirements, pursuing inorganic growth through acquisitions, and general corporate purposes.

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