Dr Agarwal's Health Care Announces IPO to Raise Rs 3,500 Crore

Dr Agarwal's Health Care, backed by Temasek Holdings and TPG, aims to raise Rs 3,000-3,500 crore via IPO. The offering includes a fresh issue worth Rs 300 crore and an Offer For Sale of 6.95 crore shares by promoters and others. Proceeds will address debt and corporate needs.

Temasek Holdings and TPG-backed Dr Agarwal's Health Care has filed preliminary papers with the capital markets regulator to launch an IPO aiming to raise between Rs 3,000-3,500 crore.

The IPO will feature a fresh issue of shares worth up to Rs 300 crore and an Offer For Sale (OFS) involving 6.95 crore equity shares from promoters and other selling shareholders. According to the draft red herring prospectus (DRHP), a portion of the offer is reserved for eligible employees.

Key shareholders participating in the OFS include Arvon Investments Pte. Ltd, Claymore Investments (Mauritius) Pte. Ltd, and Hyperion Investments Pte. Ltd. Merchant banking sources have placed the expected IPO size between Rs 3,000-3,500 crore.

The fresh issue proceeds will primarily be used to pay off debts, fund general corporate purposes, and support unidentified inorganic acquisitions. Dr Agarwal's Health Care provides a comprehensive range of eye care services, including cataract and refractive surgeries, consultations, and the sale of optical products.

According to a CRISIL MI&A report, the company dominated about 25% of India's eye care service chain market in FY 2024. As of March 2024, the company operated 180 facilities, predominantly in South India.

In Fiscal 2024, Dr Agarwal's Health Care reported revenue of Rs 1,332.15 crore with a profit after tax of 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 for the issue.

(With inputs from agencies.)