Dr. Agarwal's Health Care IPO: Is a clearer vision on the horizon?
Subscribe to enjoy similar stories. Dr. Agarwal’s Health Care, India’s largest eye care chain by revenue and network size, is going public with plans to raise ₹3,027 crore.
This issue will open for subscription on Wednesday and close on Friday. The company, led by Dr. Amar Agarwal, a renowned ophthalmologist with over 35 years of experience, is well-positioned to capitalize on the expanding healthcare sector.
However, its lofty valuations compared to rivals and its declining ability to service its debt could hinder future expansion plans. The company’s first foray into the stock market was in 1995, when it listed its subsidiary, Dr. Agarwal’s Eye Hospital, on the BSE to fuel expansion in Tamil Nadu.
In 2010, the holding company, Dr. Agarwal’s Health Care was established with a 72% stake in Dr. Agarwal's Eye Hospital Ltd.
“Our plan is to merge the subsidiary with the holding company within the next three years. We aim to complete this within that timeframe," Adil Agarwal, the company’s chief executive officer told Mint. “The reason for listing the holding company is that we believe the company, due to its size, scale, and strong financial position, presents significant value and wealth creation opportunities for all our stakeholders," he added.
With an estimated 25% market share in FY24 and a network of 209 facilities nationwide, Dr. Agarwal’s Health Care offers a range of eye care solutions, including cataract and refractive surgeries, consultations, diagnoses, non-surgical treatments, and the sale of optical products, contact lenses, and pharmaceutical items. Also read: Four generations of eye doctors from Chennai build $1.5 billion eye care business The company has achieved a 38.3% revenue and a 48.4% net profit growth
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