Dr Agarwal’s Healthcare, backed by Temasek Holdings and TPG, has filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) on September 27. The eye care services provider aims to raise funds through a mix of a Rs 300 crore fresh equity issue and an offer-for-sale (OFS) of 6.95 crore shares by promoters and existing investors.
The selling shareholders in the OFS include key promoters such as Amar Agarwal, Athiya Agarwal, and others, alongside institutional investors like Temasek’s Arvon Investments Pte and Claymore Investments (Mauritius) Pte, and TPG’s Hyperion Investments Pte.
Currently, the promoters hold a 37.83 percent stake in the parent company, while institutional investors own the remainder, with Hyperion holding the largest share at 33.75 percent.
Dr Agarwal’s Healthcare runs 165 centres across the country and 15 overseas. It has 71.90 percent in its listed subsidiary, Dr. Agarwals Eye Hospital. Thus, the company is renowned for catering to complete eye care services, with a market share of 25 percent in India in fiscal 2024.
Of the fresh issue proceeds, the company proposes to use Rs 195 crore in retiring debt, with the balance for general corporate purposes and acquisitions. Dr Agarwal’s Eye Hospital plans to bring down its Rs 384 crore debt, thus improving its financial health continuing its progress on reducing debt-to-equity ratio.
Meanwhile, net profit in FY24 fell 7.9 percent despite recording a 30.9 percent sales growth to Rs 1,332 crore on account of higher tax outgo. However, EBITDA rose 34 percent to Rs 362.3 crore while margins improved to 27.2 percent from 25.3 percent.
The merchant bankers appointed for the IPO are Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal.
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Source: Moneycontrol
News Desk
