Dr Agarwal's Health Care Secures Rs 875.5 Crore from Anchor Investors Before IPO Launch

Dr Agarwals Health Care, supported by Temasek Holdings and TPG, has secured over Rs 875.5 crore from anchor investors before its IPO. The Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, and Morgan Stanley are among the key investors. According to a BSE circular, 2.17 crore equity shares were allocated to 43 funds at Rs 402 each, totalling Rs 875.50 crore.

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The public issue, valued at Rs 3,027.26 crore, will be available for subscription from January 29 to January 31. The price range is set between Rs 382 and Rs 402 per share. This IPO includes a fresh issue of up to Rs 300 crore and an Offer For Sale (OFS) of up to 6.78 crore equity shares worth Rs 2,727.26 crore by promoters and other shareholders.

Anchor Investors and Allocation

Among the total allocation of shares to anchor investors, domestic mutual funds received 52.61 lakh shares through their 11 schemes. The offer also includes a subscription option for eligible employees. Arvon Investments Pte Ltd, Claymore Investments Mauritius Pte Ltd, and Hyperion Investments Pte Ltd are among those selling shares in the OFS.

Proceeds from the fresh issue will primarily be used to repay debt, with Rs 195 crore allocated for this purpose. Additionally, funds will support general corporate needs and potential acquisitions. The issue reserves half for qualified institutional buyers, 35% for non-institutional investors, and the remaining 15% for retail investors.

Company Services and Financials

Dr Agarwals Health Care provides a variety of services such as cataract surgeries, consultations, diagnostics, non-surgical treatments, and sales of optical products. As of September 2024, it operated 193 facilities mainly in South India cities like Chennai, Hyderabad, and Bengaluru.

Financially, the company reported revenue from operations at Rs 1,332.15 crore for fiscal year 2024 with a profit after tax of Rs 95.05 crore. Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors are leading the book-running management for this issue.

The company's strategic focus on expanding its network in South India has contributed significantly to its growth. With a strong presence in major cities like Chennai and Bengaluru, Dr Agarwals Health Care aims to leverage its expertise in eye care services to further enhance its market position.

By raising substantial funds through this IPO, Dr Agarwals Health Care plans to strengthen its financial standing and explore new opportunities for growth in the healthcare sector.