Introduction
Dr. Aggarwal’s Healthcare, a leading provider of eye care services in India, is making headlines with its upcoming Initial Public Offering (IPO). By partnering with prominent investors such as Temasek Holdings and TPG, the company aims to raise substantial funds to bolster its operations and growth. On September 27, the company submitted its draft papers to the Securities and Exchange Board of India (SEBI), marking a significant step towards going public.
IPO Details
In this IPO, Dr. Aggarwal’s Healthcare plans to issue new equity shares amounting to Rs 300 crore. Additionally, there will be an Offer for Sale (OFS) of approximately 6.95 crore equity shares from various promoters and investors. Notable promoters involved in the OFS include Amar Agarwal, Athiya Agarwal, Adil Agarwal, Anosh Agarwal, Ashwin Agarwal, Dr. Agarwal’s Eye Institute, Farah Agarwal, and Urmila Agarwal.
Participating Shareholders
Aside from the promoters, other institutional shareholders such as Arvon Investments Pte, Claymore Investments (Mauritius) Pte, and Hyperion Investments Pte will also sell shares under the OFS. Both Arvon and Claymore are owned by Singapore-based Temasek Holdings, while Hyperion is associated with the US private equity firm TPG.
Ownership Structure
| Shareholder Type | Stake (%) |
|---|---|
| Promoters | 37.83 |
| Arvon Investments Pte | 12.45 |
| Claymore Investments (Mauritius) Pte | 15.73 |
| Hyperion Investments Pte | 33.75 |
| Public Shareholders | 62.17 |
How Will the Funds Be Utilized?
Dr. Aggarwal’s Healthcare intends to utilize Rs 195 crore raised from the IPO to repay existing loans, enhancing its financial stability. The remaining funds will be allocated for general corporate purposes and potential inorganic acquisitions, supporting the company’s expansion strategy. Currently, Dr. Aggarwal’s Healthcare operates 165 facilities within India and 15 international locations, including 9 in Africa, offering a broad spectrum of eye care services such as cataract and refractive surgeries.
Company Financials
As of July 2024, Dr. Aggarwal’s Healthcare reported a consolidated debt of Rs 384 crore. Despite a drop in net profit by 7.9% to Rs 95 crore in FY 2024 (down from Rs 103.2 crore), the company exhibited robust revenue growth, with a 30.9% increase in revenue from operations—from Rs 1,018 crore in FY 2023 to Rs 1,332 crore. Additionally, EBITDA grew by 34% to Rs 362.3 crore, resulting in a marginal rise in EBITDA margins to 27.2%. The company captured around 25% of the total eye care service market in India during FY 2024, reinforcing its position as a key player in the sector.
Conclusion
With a strong investment backing and a clear use of proceeds from its IPO, Dr. Aggarwal’s Healthcare is poised for growth and expansion in the competitive eye care sector. The upcoming IPO not only marks a pivotal moment for the company but also signifies its commitment to enhancing eye health services across India and globally.
