Dr Agarwal’s Healthcare IPO: Received SEBI approval, issue may launch soon

Dr. Aggarwal’s Healthcare, which provides eyecare services, has received approval from SEBI for its IPO. Moneycontrol has received this information from reliable sources. The company had submitted draft papers for its IPO on 27 September 2024. TPG and Temasek Holdings are major investors in the company.

Dr Agarwal’s Healthcare is the parent company of listed company Dr Agarwal’s Eye Hospital, in which Dr Agarwal’s Healthcare holds 71.90% stake.

IPO timeline

According to sources:

• Despite approval from SEBI, final launch date But the decision has not been taken yet.
• Keeping in mind the market conditions and other factors, the IPO End of January or February 2025 (after budget) Can be launched.

Structure of IPO: New shares and OFS worth Rs 300 crore

• in IPO Rs 300 crore New equity shares will be issued.
• From promoters and investors 6.95 crore equity shares Of Offer for Sale (OFS) Will remain.

Major stake and shareholders:

• Promoters: 37.83% stake.
  • The promoter group includes Amar Agarwal, Athiya Agarwal, Adil Agarwal, Anosh Agarwal, Ashwin Agarwal, Farah Agarwal and Urmila Agarwal.
• TPG: 33.75% stake (through Hyperion Investments Pte).
• Temasek:
  • 12.45% through Arvon Investments Pte.
  • 15.73% through Claymore Investments (Mauritius) Pte.

Merchant Banker:

Kotak Mahindra Capital, Jefferies, Morgan Stanley and Motilal Oswal are the merchant bankers of this IPO.

Use of funds raised from IPO

The company will use the funds raised from the IPO for the following purposes:

1. To repay the loan:
   • Rs 195 crore will be used to reduce debt.
2. Inorganic Acquisitions:
   • Investments will be made in new acquisitions and expansion plans.
3. General corporate needs.

Company Introduction and Services

Dr. Agarwal’s Healthcare Presence:

• in india 165 clinics and globally 15 facilities (including 9 in Africa).
• The company provides leading eyecare services, such as:
  • Cataract surgery.
  • Refractive surgery.
  • Eyecare related pharma products, spectacles and contact lenses.
• Company’s share in total eyecare service chain market in India in FY 2024 25% stake Was.

company’s financial performance

Debt and Profit:

• July 2024: The company has a consolidated debt of ₹384 crore.
• FY24 net profit:
  • decreased by 7.9% ₹95 crore (Previous year: ₹103.2 crore).

Revenue and EBITDA:

• Operational Revenue:
  • increased by 30.9% ₹1,332 crore (Previous year: ₹1,018 crore).
• EBITDA:
  • with 34% growth ₹362.3 crore,
• EBITDA Margin:
  • With an increase of 0.6 bps 27.2%.

Importance of IPO launch

The IPO of Dr. Agarwal’s Healthcare is being considered a big step in the Indian healthcare sector.

• The company’s strong presence and expansion plans make it attractive for investors.
• The company’s growth can be further strengthened by reducing debt and new acquisition plans.