Eyecare Co Dr. Agarwal’s Health Care Files DRHP To Raise Funds Via IPO — Check Details

Eyecare services provider Dr. Agarwal's Health Care has filed its draft red herring prospectus with SEBI to raise funds through an initial public offering.

In addition to a Rs 300-crore fresh issue, the company has also proposed an offer for sale of up to 69,568,204 equity shares by the promoter and other selling shareholders, according to the DRHP which added that the offer includes a subscription reservation for eligible employees.

Singapore investment giant Temasek Holdings and US private equity firm TPG Growth hold stake in the company.

"The proceeds from the fresh issue to Rs 195 crore for repayment/prepayment, in part or full, of certain of its borrowings; general corporate purposes, and unidentified inorganic acquisition," according to the DRHP.

Majority of the company's facilities are concentrated in the south particularly Chennai, Hyderabad and Bengaluru followed by the western India. "As of March 31, 2024, its network consisted of 180 facilities out of which 165 facilities were in India," the DRHP said.

Book -running lead managers of the offer include Kotak Mahindra Capital Company Ltd, Morgan Stanley India Co Pvt. Ltd., Jefferies India Pvt. Ltd., and Motilal Oswal Investment Advisors Ltd., and KFin Technologies Ltd is the registrar to the offer.

Some of its key surgical capabilities include intraocular lens procedures, cornea transplantation, pinhole pupilloplasty, single pass four-throw pupilloplasty and LASIK surgeries.

While its primary facilities provide initial eye care diagnosis and clinical investigation, the secondary facilities provide select services including cataract surgeries and clinical investigations and the tertiary facilities have super-specialty surgical capabilities including retinal, corneal, and refractive surgeries. "The center of excellence also offer academic programs in ophthalmology and provide continuous training for our doctors, optometrists and counsellors," the DRHP said.

In the last fiscal, the company reported a 30.86% year-on-year growth in its revenue to Rs 1,332.15 crore from Rs 1,017.98 crore. Profit after tax for the last fiscal stood at Rs 95.05 crore, down from Rs 1,032.30 crore in the year ended March 2023.

Shares of the company's arm Dr. Agarwal's Eye Hospital Ltd. surged more than 8% on Monday to hit their lifetime high of Rs 5,114 apiece.