Dr. Agarwal’s Health Care, the largest eyecare services provider in India, supported by Temasek Holdings and TPG, has submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The offering comprises a fresh issuance of up to ₹300 crore and an offer for sale of 69.57 million equity shares by promoters and existing shareholders.
IPO Structure and Allocation
The IPO features a face value of ₹1 per share, with a fresh issue aiming to raise up to ₹300 crore. The offer for sale (OFS) includes shares from key stakeholders, including Dr. Amar Agarwal, Dr. Athiya Agarwal, and Dr. Adil Agarwal.
The allocation structure is as follows:
- Up to 50% of the net offer reserved for Qualified Institutional Buyers (QIBs).
- A minimum of 15% allocated for Non-Institutional Investors (NIIs).
- 35% designated for retail individual investors.
- Additionally, a reservation is included for eligible employees.
There is also a possibility for a pre-IPO placement not exceeding 20% of the fresh issue, which could reduce the total fresh issue size.
Fund Utilization
Proceeds from the fresh issue, amounting to ₹195 crore, will be allocated to:
- Repayment or prepayment of certain borrowings.
- General corporate purposes.
- Potential unidentified inorganic acquisitions.
Company Overview
Founded by Dr. Amar Agarwal, who boasts over 35 years of experience, Dr. Agarwal’s Health Care operates 180 facilities worldwide, with 165 located in India and 15 internationally. The company provides comprehensive eyecare services, including cataract and refractive surgeries, consultations, diagnostics, non-surgical treatments, and optical products.
Financial Performance (FY 2024)
Revenue: ₹1,332.15 crore, reflecting a 30.86% increase from FY 2023.
Profit After Tax: ₹95.05 crore.
Market Share: Approximately 25% of the Indian eye care services market.
Operational Model
The company employs a “hub and spoke” operational model, categorizing its facilities into primary (non-surgical), secondary (surgical), and tertiary (super-specialty surgical) levels, supported by three Centers of Excellence (COEs). This model enhances scalability and accessibility within its network.
Domestic Network: 26 hubs (Tertiary Facilities) and 139 spokes (35 Primary and 104 Secondary Facilities).
International Presence: 15 facilities across nine African countries.
Market Outlook
The Indian eye care industry is anticipated 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 projected to reach between ₹55,000 and ₹65,000 crore by FY 2028.
IPO Management
The book-running lead managers for the IPO include Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors, with KFin Technologies serving as the registrar.
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