Dr Agarwal's Health Care gets Sebi nod to raise Rs 300 crore. Details here

Temasek Holdings and TPG-backed eye care services Dr Agarwal's Health Care has received final observation from the capital markets regulator Sebi to raise funds through an initial public offering (IPO). The eye care chain had filed its draft IPO papers with the Securities and Exchange Board of India on September 27 last year.

"The IPO with a face value of Re 1 per equity share is a mix of a fresh issue of up to Rs 300 crore and an offer for sale of up to 69,568,204 equity shares by the promoter and other selling shareholders. The offer also includes a subscription reservation for eligible employees," the company stated in a release on Wednesday.

"The offer for sale consists of up to 22,53,913 equity shares by Dr Amar Agarwal and up to 27,04,696 equity shares by Dr Athiya Agarwal, up to 29,61,614 equity shares by Dr Adil Agarwal, up to 52,42,630 equity shares by Dr Anosh Agarwal, up to 2,30,035 equity shares by Dr Ashvin Agarwal, up to 19,63,172 equity shares by Dr Agarwal's Eye Institute, up to 70,83,010 equity shares by Arvon Investments Pte Ltd, up to 1,61,48,150 equity shares by Claymore Investments (Mauritius) Pte Ltd, up to 3,07,55,592 equity shares by Hyperion Investments Pte Ltd, up to 1,12,696 equity shares by Farah Agarwal, and up to 1,12,696 equity shares by Urmila Agarwal," it also said.

The company, in consultation with the book-running lead managers, mentioned that it may consider a pre-IPO placement of specified securities that shall not exceed 20 per cent of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.

The proceeds from the fresh issue of up to Rs 195 crore will be used for repayment/prepayment of certain borrowings, general corporate purposes and potential acquisitions.

Dr Agarwal Health offers a wide array of services which include cataract, refractive, and other surgeries, consultations, diagnosis, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care-related pharmaceutical items. Some of its key surgical capabilities include intraocular lens procedures, cornea transplantation, pinhole pupilloplasty, single pass four-throw pupilloplasty and LASIK surgeries.

According to a CRISIL MI&A report cited in its DRHP (draft red herring prospectus), the company held about 25 per cent of the total eye care service chain market in India during FY 2024.

Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Pvt Ltd, Jefferies India Pvt Ltd, and Motilal Oswal Investment Advisors Ltd are the book-running lead managers and KFin Technologies Ltd is the registrar to the offer.