IPO-bound Dr. Agarwal’s Healthcare, India’s largest eye care hospital chain by revenue, plans to commence work on merging with its listed subsidiary, Dr. Agarwal’s Eye Hospital, immediately after listing. The company aims to complete the merger within 12 months, according to its management.
Speaking at a media briefing on January 24, the management addressed a query by Moneycontrol regarding the merger timeline between the two entities, which currently differ in operational formats and geographical focus.
Dr. Agarwal’s Healthcare currently holds a 71.9% stake in Dr. Agarwal’s Eye Hospital, established in 1994. However, as per the red herring prospectus (RHP), the merger process has a potential window of three years, contingent on regulatory and corporate approvals, business synergies, and market conditions. “We may explore opportunities to merge the Company and AEHL within three years post listing, subject to compliance with applicable laws and approvals. As of now, no such proposal has been considered with AEHL, its board, or shareholders,” the RHP states.
The IPO of Dr. Agarwal’s Healthcare, backed by TPG and Temasek, will open for subscription from January 29 to January 31, with January 28 reserved for the anchor portion. The company is targeting a post-money valuation of ₹12,700 crore to ₹12,900 crore, according to sources.
The price band for the IPO is set at ₹382-402 per equity share with a face value of ₹1 each. Investors can bid for a minimum of 35 shares and in multiples thereafter. The IPO consists of a fresh issue of equity shares worth ₹300 crore and an offer-for-sale of 6.95 crore shares by promoters and investors.