India’s Largest Eyecare Services Provider Dr. Agarwal’s Health Care...

India’s Largest Eyecare Services Provider Dr. Agarwal’s Health Care gets Sebi nod for IPO

Temasek Holdings and TPG-backed eye care services Dr. Agarwal's Health Care has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

 

The Company had filed its IPO papers with Sebi on September 27, 2024.

 

The IPO with a face value of Re 1 per equity share is a mix of a fresh issue of up to Rs 300 crore and an offer for sale of up to 69,568,204 equity shares by the promoter and other selling shareholders. The offer also includes a subscription reservation for eligible employees.

 

The offer for sale consists of up to 2,253,913 equity shares by Dr. Amar Agarwal and up to 2,704,696 equity shares by Dr. Athiya Agarwal, up to 2,961,614 Equity Shares by Dr. Adil Agarwal, up to 5,242,630 equity shares by Dr. Anosh Agarwal, up to 230,035 equity shares by Dr. Ashvin Agarwal, up to 1,963,172 equity shares by Dr. Agarwal's Eye Institute, up to 7,083,010 equity shares by Arvon Investments Pte. Ltd., up to 16,148,150 equity shares by Claymore Investments (Mauritius) Pte. Ltd., up to 30,755,592 equity shares by Hyperion Investments Pte. Ltd., up to 112,696 equity shares by Farah Agarwal, and up to 112,696 equity shares by Urmila Agarwal.

 

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of specified securities that shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.

 

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.

 

Dr. Agarwal Health Care, under the leadership of its Chairman, Dr. Amar Agarwal, who has over 35 years of experience in the eye care sector, offers a wide array of services. These include 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 cited in its DRHP, the company held about 25% of the total eye care service chain market in India during FY 2024. It compares with are ASG Hospitals and New Delhi Centre for Sight w.r.t geographic presence across India and Internationally.

Some of its key surgical capabilities include intraocular lens procedures, cornea transplantation, pinhole pupilloplasty, single pass four-throw pupilloplasty and LASIK surgeries. Interestingly, its doctors have developed and published research on surgical techniques including Glued IOL Technique, Scaffold IOL Extrusion Cannula Assisted Levitation (“ECAL”), Pre-Descemets Endothelial Keratoplasty (“PDEK”), Contact Lens Assisted Cross-Linking (“CACXL”), and Corneal Allogenic Intrastromal Ring Segments (“CAIRS”), among others. As of March 31, 2024, its doctors hold two patents for their innovations.

With an extensive operational track record, Dr. Agarwal Health Care aims to meet all patient needs throughout their eye treatment journey. 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 the western India.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers, and KFin Technologies Limited is the registrar to the offer.