Dr. Agarwals Health Care to raise ₹3,000 crore through IPO

Dr Agarwals Healthcare, the parent company of the publicly traded company Dr Agarwals Eye Hospital, has enlisted the advice of five investment banks and begun the process of launching an IPO to raise over ₹3,000 Crore in FY25, as per the reports of Moneycontrol.

The company, which has the support of well-known investors Temasek and TPG Growth, owns 71.75% of its 1994-incorporated subsidiary Dr. Agarwals Eye Hospitals.

“Kotak Mahindra Capital, Jefferies, BofA Securities, Morgan Stanley, and Motilal Oswal Financial Services have been chosen as members of the IPO syndicate. The deal was recently initiated.” The idea is to raise about ₹3,000 Crore, however the exact amount hasn’t been decided yet and may change later based on the state of the market,” the report stated.

The decision is being made at a time when the Nifty Healthcare Index has increased by 58% over the past year. Should the firm’s plans come to pass, this will be the largest initial public offering (IPO) by a healthcare or hospital chain since Global Health Ltd, which operates Medanta Hospitals and is backed by Dr. Naresh Trehan, raised about ₹2,200 Crore in late 2022.

According to a second source who talked to Moneycontrol, “the goal is to extract value from the bigger, unlisted parent, and listing is a good way to attract new investors and give the PE players a partial exit window.” With this planned IPO, which will combine a primary and secondary share offering, Dr. Agarwals Healthcare hopes to quickly grow its network and make investments in cutting-edge technology.”

“Dr. Agarwals Health Care and Dr. Agarwals Eye Hospitals are two enterprises that have grown rather successfully over the years and have different formats and geographic distribution. The stakeholders have assessed all available choices, and given the strong demand for healthcare assets, it makes sense to start the price discovery process over.

It is possible for both parties to investigate a combination at a later time, according to the report.

In the past year, three hospital chains—GPT Healthcare, which focuses on West Bengal and Tripura; Jupiter Life Line Hospitals, which is based in Thane, Maharashtra; and Yatharth Hospitals, which is based in Noida—have gone public on local stock exchanges.

The US private equity firm TPG Growth and the Singaporean investment behemoth Temasek together own approximately 60% of Dr Agarwals Health Care.

At its locations, the firm provides eye care services for conditions such cataract, glaucoma, squint, laser correction, vitreo-retinal surgery, and corneal transplantation. Furthermore, the website states that its tertiary centers provide super-specialty eye care treatments such oculoplasty, neuro-ophthalmology, uvea, pediatric ophthalmology, and ocular oncology. IndiaInfoline