Dr Agarwal's Health Care Receives SEBI Approval for INR 300 Cr IPO

The IPO will include a fresh issue of up to INR 300 Cr and an offer for sale of 69,568,204 equity shares by the promoter and other selling shareholders. A portion of the offering will be reserved for eligible employees.

Temasek Holdings and TPG-backed Dr Agarwal's Health Care has secured approval from the Securities and Exchange Board of India (SEBI) to raise Rs 300 crore through an initial public offering (IPO). The eye care chain submitted its draft IPO documents on September 27, 2024.

The IPO will include a fresh issue of up to INR 300 Cr and an offer for sale of 69,568,204 equity shares by the promoter and other selling shareholders. A portion of the offering will be reserved for eligible employees, according to the company’s release on Wednesday.

The offer for sale comprises equity shares from key stakeholders, including Dr Amar Agarwal, Dr Athiya Agarwal, Dr Adil Agarwal, Dr Anosh Agarwal, Dr Ashvin Agarwal, Dr Agarwal's Eye Institute, Arvon Investments, Claymore Investments (Mauritius), Hyperion Investments, Farah Agarwal, and Urmila Agarwal.

The company may consider a pre-IPO placement of securities not exceeding 20% of the fresh issue size, which will reduce the size of the fresh issue if completed.

Proceeds from the fresh issue will be allocated for repayment or prepayment of certain borrowings, corporate purposes, and potential acquisitions, with up to INR 195 Cr earmarked for these purposes.

Dr Agarwal's Health Care offers services including cataract and refractive surgeries, consultations, diagnostics, and non-surgical treatments. The company also sells optical products, contact lenses, accessories, and eye care-related pharmaceuticals.

Notably, it specializes in advanced procedures like intraocular lens surgery, cornea transplantation, and LASIK.

A CRISIL MI&A report in the company’s DRHP indicates that Dr Agarwal's held approximately 25% of India's eye care service chain market in FY 2024.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO, with KFin Technologies serving as the registrar.