Dr Agarwal's Health Care files draft papers with Sebi to raise funds via IPO

Temasek Holdings and TPG-backed Dr Agarwal's Health Care, an eye care services provider, has filed preliminary papers with the capital markets regulator to raise an estimated Rs 3,000-3,500 crore through its initial public offering (IPO).

The IPO is a combination of a fresh issue of up to Rs 300 crore and an Offer For Sale, (OFS) of up to 6.95 crore equity shares by promoters and other selling shareholders. The offer also includes a subscription for eligible employees, according to the draft red herring prospectus (DRHP).

Those selling shares in the OFS include Arvon Investments Pte. Ltd, Claymore Investments (Mauritius) Pte. Ltd, and Hyperion Investments Pte. Ltd.

Merchant banking sources have pegged the IPO size as Rs 3,000-3,500 crore.

Going by the draft papers filed on Friday, proceeds from the fresh issue to the tune of Rs 195 crore will be used for payment of debt and besides, a portion will be used for general corporate purposes, and for unidentified inorganic acquisition.

Dr Agarwal's Health Care 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,  the company held about 25 per cent of the total eye care service chain market in India during FY 2024.

As of March 31, 2024, its network consisted of 180 facilities out of which 165 facilities were in India with a majority concentration in South India particularly Chennai, Hyderabad and Bengaluru followed by Western India.

On the financial front, Dr Agarwal's Health Care revenue from operations was at  Rs 1,332.15 crore in Fiscal 2024. Profit after tax stood at Rs 95.05 crore.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.