India's leading eye care chain files for IPO
Dr. Agarwal's Health Care, one of India's top eye care service providers, is making moves to go public. The medical company has just filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). It is looking to launch an initial public offering (IPO) with a face value of ₹1 per equity share. This is all part of the company's plan to raise funds through the stock market and grow its operations even further.
IPO comprises fresh issue and offer for sale
The IPO that is on the table includes a fresh issue of up to ₹300 crore and an offer for sale of up to 69,568,204 equity shares by the promoter and other selling shareholders. The offer for sale includes shares from Dr. Amar Agarwal, Athiya Agarwal, Adil Agarwal, Anosh Agarwal, Ashvin Agarwal, and Dr. Agarwal's Eye Institute, among others. They might also consider a pre-IPO placement, but only after consulting with the book-running lead managers.
Allocation and use of IPO proceeds
The IPO will be done through the book-building process, with allocations set aside for different investor categories. The money raised from the new shares will go toward paying off some loans, covering general corporate expenses, and making potential acquisitions. This strategic move is expected to strengthen Dr. Agarwal's Health Care's financial position and help with its growth plans.
Dr. Agarwal's Health Care reports revenue growth
In FY 2024, Dr. Agarwal's Health Care saw a revenue boost of 30.86% from ₹1,017.98 crore to ₹1,332.15 crore. The company's profit after tax for the same period stood at ₹95.05 crore, showing a robust financial performance ahead of its planned IPO launch.
Indian eye care industry projected to grow
The Indian eye care industry is set to see some serious growth, with estimates suggesting a compound annual growth rate (CAGR) of 12% to 14% between FY2024 and FY2028. The market size was around ₹37,800 crore in FY2024, and it's expected to hit between ₹55,000 crore and ₹65,000 crore by FY2028. This upward trend is great news for companies like Dr. Agarwal's Health Care, which are ready to take on the expanding eye care sector.
