Dr Agarwal’s Health Care files DRHP with SEBI for fundraising through public issue
Agarwal’s Health Care Limited, a prominent player in the Indian eye care sector, has recently filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO). The company aims to raise approximately ₹300 crore through a fresh issue of equity shares, complemented by an offer for sale where existing shareholders will sell up to 6.95 crore shares
The funds from the fresh issue will primarily be allocated for debt repayment (₹195 crore), general corporate purposes, and potential acquisitions. Notably, the company’s current debt stands at ₹384 crore, and it has seen an improvement in its debt-to-equity ratio, decreasing from 1.3 in FY23 to 0.70 in FY24.
Agarwal’s Health Care holds a significant market share in the Indian eye care industry, estimated at around 25%. The company operates a vast network, comprising 165 centers within India and 15 international facilities across nine African nations. Its services encompass a range of eye care treatments, including cataract surgeries, refractive procedures, and the sale of optical products
The IPO is being managed by reputable book-running lead managers, including Kotak Mahindra Capital Company, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors. This public offering marks a significant step for Agarwal’s Health Care as it seeks to enhance its operational capacity and capitalize on the growing eye care market, projected to expand at a compound annual growth rate (CAGR) of 12-14% over the next few years.
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