Dr Agarwals Eye Hospital IPO: Debt Payment, Corporate Purposes
By Rediff Money Desk, Chennai Jan 25, 2025 16:40
Dr Agarwals Eye Hospital's IPO aims to raise Rs 3,027.26 crore, with funds allocated for debt repayment and general corporate purposes. The leading eye care provider operates across India and Africa.
Chennai, Jan 25 (PTI) Leading eye care service provider Dr Agarwals Eye Hospital would utilize the funds raised through the forthcoming Initial Public Offering for payment of debts and to meet some general corporate purposes, an official said.
The city-headquartered company, backed by Temasek Holdings and TPG is proposing to raise an aggregate of Rs 3,027.26 crore through its maiden IPO to open from January 29 to 31 at a price band of Rs 382 to Rs 402 per share.
The public issue would be a combination of a 'fresh issue' of up to Rs 300 crore and an Offer for Sale of up to 6.78 crore equity shares worth Rs 2,727.26 crore by promoters and other shareholders.
Briefing reporters here, the hospital's CEO Adil Agarwal said the aggregate size of the IPO is Rs 3,027.26 crore out of which Rs 300 crore would go into the company to reduce the debts.
"Through the proceeds from its fresh issuance to the extent of Rs 195 crore will be utilised for repayment or prepayment in part or full of certain of its borrowings, and the balance proceeds raised will be utilised for general corporate purposes and unidentified inorganic acquisitions" he said.
To a query, he said the current debt of the company stood at Rs 373 crore.
The eye care major currently operates 209 facilities, of which 193 are present in India and the remaining 16 are in the African market.
According to Agarwal, the eye care industry is valued at Rs 37,800 crore and growing at 12-18 per cent year-on-year and about 275 million people in the country suffer eye related issues.
On the financials front, company Chief Financial Officer Yashwant Venkat said Dr Agarwal Eye Hospital has been witnessing a 38 per cent year-on-year growth in the last three years. The company reported revenues of Rs 1,032 crore last financial year (FY2023-24) and for the current six month period ending September 30, 2024 the revenues stood at Rs 820 crore.
"About 45 per cent of the revenues come from the first six month period while 55 per cent of revenues is contributed from the remaining six months (of a financial year)", he said.
Kotak Mahindra Capital Company Ltd, Morgan Stanley India, Jefferies India Pvt Ltd, Motilal Oswal Investment Advisors Ltd are the book running lead managers and KFin Technologies is the registrar of the issue.
The city-headquartered company, backed by Temasek Holdings and TPG is proposing to raise an aggregate of Rs 3,027.26 crore through its maiden IPO to open from January 29 to 31 at a price band of Rs 382 to Rs 402 per share.
The public issue would be a combination of a 'fresh issue' of up to Rs 300 crore and an Offer for Sale of up to 6.78 crore equity shares worth Rs 2,727.26 crore by promoters and other shareholders.
Briefing reporters here, the hospital's CEO Adil Agarwal said the aggregate size of the IPO is Rs 3,027.26 crore out of which Rs 300 crore would go into the company to reduce the debts.
"Through the proceeds from its fresh issuance to the extent of Rs 195 crore will be utilised for repayment or prepayment in part or full of certain of its borrowings, and the balance proceeds raised will be utilised for general corporate purposes and unidentified inorganic acquisitions" he said.
To a query, he said the current debt of the company stood at Rs 373 crore.
The eye care major currently operates 209 facilities, of which 193 are present in India and the remaining 16 are in the African market.
According to Agarwal, the eye care industry is valued at Rs 37,800 crore and growing at 12-18 per cent year-on-year and about 275 million people in the country suffer eye related issues.
On the financials front, company Chief Financial Officer Yashwant Venkat said Dr Agarwal Eye Hospital has been witnessing a 38 per cent year-on-year growth in the last three years. The company reported revenues of Rs 1,032 crore last financial year (FY2023-24) and for the current six month period ending September 30, 2024 the revenues stood at Rs 820 crore.
"About 45 per cent of the revenues come from the first six month period while 55 per cent of revenues is contributed from the remaining six months (of a financial year)", he said.
Kotak Mahindra Capital Company Ltd, Morgan Stanley India, Jefferies India Pvt Ltd, Motilal Oswal Investment Advisors Ltd are the book running lead managers and KFin Technologies is the registrar of the issue.
Source: PTI
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