Temasek Holdings and TPG-backed eye care services provider Dr. Agarwal's Health Care has filed preliminary documents with capital markets regulator Sebi to raise about Rs 3,000-3,500 crore through its initial public offering (IPO). According to the IPO documents, the IPO is a combination of fresh shares worth up to Rs 300 crore and an offer for sale (OFS) of up to 6.95 crore shares by promoters and other share sellers.
IPO size ₹3,000-3,500 crore
According to the news, merchant banking sources have estimated the size of the IPO at Rs 3,000-3,500 crore. The IPO documents were filed on Friday. According to this, the amount of Rs 195 crore received from the new issue will be used to repay the loan. Additionally a portion will be used for general corporate purposes and undisclosed inorganic acquisitions. Dr. Agarwal's Health Care provides a wide range of services including cataract and other surgeries, consultations, diagnostics, non-surgical treatments and sale of optical products, contact lenses, accessories and eye care related medicines.
Who has what share?
According to Livemint news, at present the promoters' stake in the company is 37.83 percent, while the remaining stake is with public shareholders. These include Arvon with 12.45 percent stake, Claymore with 15.73 percent stake and Hyperion with 33.75 percent stake. According to a report, the Indian eye care industry is expected to grow at a compound annual growth rate (CAGR) of 12-14 percent. It is estimated that this will increase from ₹37,800 crore in FY24 to approximately ₹55,000-₹65,000 crore by FY2028.
Dr Agarwal plans to use the proceeds from the fresh issue to reduce debt and the remaining amount for corporate purposes and acquisitions. As of July 2024, the company's debt stood at ₹384 crore. The debt-to-equity ratio of the company has improved compared to the last financial year. It has fallen from 1.3x in FY23 to 0.70x in FY24.
Image Credit: India-Tv.