Dr. Agarwal’s Health Care, India’s largest eyecare services provider backed by Temasek Holdings and TPG, has filed a Draft Red Herring Prospectus (DRHP) with SEBI to raise funds through an IPO. The issue includes a fresh issuance of up to ₹300 crore and an offer for sale of 69.57 million equity shares from promoters and existing shareholders.
IPO Details and Allocation
- Issue Structure: The IPO has a face value of ₹1 per share. It will include a fresh issue of up to ₹300 crore, while existing shareholders, including key promoters, will sell portions of their stakes.
- Offer for Sale (OFS): The OFS will involve shares from Dr. Amar Agarwal, Dr. Athiya Agarwal, Dr. Adil Agarwal, and several other stakeholders, with a total of up to 69.57 million equity shares being offered.
- Allocation Structure: Up to 50% of the net offer is reserved for Qualified Institutional Buyers (QIBs), a minimum of 15% for Non-Institutional Investors (NIIs), and 35% for retail individual bidders.
- Employee Reservation: The offer includes a reservation for eligible employees.
- Pre-IPO Placement: There is a possibility of a pre-IPO placement, which may not exceed 20% of the fresh issue. If exercised, it will reduce the size of the fresh issue.
Use of Funds
The fresh issue proceeds of ₹195 crore will be used for:
- Repayment or prepayment of certain borrowings.
- General corporate purposes.
- Potential unidentified inorganic acquisitions.
About Dr. Agarwal’s Health Care
Founded and led by Dr. Amar Agarwal, with over 35 years of experience, the company operates 180 facilities (165 in India and 15 international), specializing in comprehensive eyecare services. Its offerings include cataract, refractive, and other surgeries, consultations, diagnostics, non-surgical treatments, and optical products.
Financial Highlights (FY 2024)
- Revenue: ₹1,332.15 crore, a 30.86% increase from FY 2023.
- Profit After Tax: ₹95.05 crore.
- Market Share: Holds around 25% of the eye care services chain market in India.
Operational Model and Network
The company operates on a “hub and spoke” model with facilities categorized into primary (non-surgical), secondary (surgical), and tertiary (super-specialty surgical) levels, and has three Centers of Excellence (COEs). The model enhances scalability and accessibility across its network.
- Indian Presence: 26 hubs (Tertiary Facilities) and 139 spokes (35 Primary and 104 Secondary Facilities).
- International Reach: 15 facilities across nine African countries.
Industry and Market Outlook
The Indian eye care industry is projected to grow at a CAGR of 12-14% from FY 2024 to FY 2028. The market, valued at ₹37,800 crore in FY 2024, is expected to expand to ₹55,000-₹65,000 crore by FY 2028.
IPO Advisors
Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO, while KFin Technologies is the registrar.
