Temasek and TPG-backed Dr Agarwals Healthcare files IPO papers with Rs 300 crore fresh issue, 6.95 crore shares OFS (2024)

HomeNewsBusinessIPOTemasek and TPG-backed Dr Agarwals Healthcare files IPO papers with Rs 300 crore fresh issue, 6.95 crore shares OFS

Dr Agarwals Healthcare IPO | The initial public offering is a mix of fresh issue of equity shares worth Rs 300 crore by the company, and an offer-for-sale of 6.95 crore equity shares by promoters and investors.

Sunil Shankar Matkar

September 28, 2024 / 06:39 IST

Temasek and TPG-backed Dr Agarwals Healthcare files IPO papers with Rs 300 crore fresh issue, 6.95 crore shares OFS (1)

Dr Agarwals Healthcare files IPO Papers

Temasek Holdings and TPG-backed eye care services Dr Agarwal's Healthcare is going to tap the capital markets for fundraising via an initial public offering as it has filed preliminary papers with the capital markets regulator SEBI on September 27.

The IPO is a mix of fresh issue of equity shares worth Rs 300 crore by the company, and an offer-for-sale of 6.95 crore equity shares by promoters and investors.

Promoters Amar Agarwal, Athiya Agarwal, Adil Agarwal, Anosh Agarwal, Ashvin Agarwal, Dr Agarwal's Eye Institute, Farah Agarwal, and Urmila Agarwal will be the selling shareholders in the offer-for-sale (OFS).

Other selling shareholders in the OFS will be the marquee institutional investors Arvon Investments Pte and Claymore Investments (Mauritius) Pte (both owned by Singapore investment giant Temasek Holdings), and Hyperion Investments Pte (owned by US private equity firm TPG).

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Promoters own 37.83 percent shareholding in the parent company of the listed firm Dr Agarwals Eye Hospital. The remainder 62.17 percent of shares are held by the public shareholders including Arvon Investments Pte (12.45 percent stake), Claymore Investments (Mauritius) Pte (15.73 percent), and Hyperion Investments Pte (33.75 percent).

Moneycontrol was the first to report in March 2024 that Dr Agarwals Healthcare had engaged investment banks as advisors and kicked off the process to launch an initial public offer and raise around Rs 3,000 crore in FY25.

With 165 facilities in India and 15 globally (including 9 in Africa), the Tamil Nadu-based company provides eye care services including cataract, refractive, and other surgeries as well as sells sell opticals, contact lenses and accessories, and eye care-related pharmaceutical products. It had a market share of approximately 25 percent of the total eye care service chain market in India during the fiscal 2024.

The Indian eye care industry is projected to grow at a CAGR of 12-14 percent from FY24 to FY28. The size of the Indian eye care services industry was approximately Rs 37,800 crore in fiscal 2024 and is projected to grow to Rs 55,000-65,000 crore by FY28.

Also read:ÂAmanta Healthcare files papers with SEBI to raise funds via IPO

Dr Agarwal's Healthcare, which owns 71.90 percent shareholding in its listed subsidiary Dr. Agarwals Eye Hospital, will utilise Rs 195 crore out of the net fresh issue proceeds for repaying its debt, and the remaining funds for general corporate purposes and unidentified inorganic acquisition.

The consolidated debt on its books stood at Rs 384 crore as of July 2024. Post-issue, the company is expected to see a significant reduction in its debt burden. In fact, there has been a gradual improvement in its debt-to-equity ratio over the past years, which was at 0.70x in FY24 and declined from 1.3x in FY23 and 2.71x in FY22.

On the financial front, the net profit in fiscal 2024 dropped by 7.9 percent to Rs 95 crore from Rs 103.2 crore in the previous fiscal despite healthy topline and operating performance, as there were tax expenses at Rs 45.52 crore against tax write-back of Rs 19.6 crore during the same period.

Revenue from operations during the financial year ended March 2024 increased by 30.9 percent to Rs 1,332 crore compared to Rs 1,018 crore in the previous year. EBITDA (earnings before interest, tax, depreciation, and amortisation) grew by 34 percent year-on-year to Rs 362.3 crore, and the margin increased by 0.6 bps to 27.2 percent in fiscal 2024.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors are appointed as the merchant bankers to the issue.

Sunil Shankar Matkar

Tags: #Dr. Agarwal's Healthcare #IPO - News

first published: Sep 28, 2024 06:39 am

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Temasek and TPG-backed Dr Agarwals Healthcare files IPO papers with Rs 300 crore fresh issue, 6.95 crore shares OFS (2024)

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