Dr Agarwal's Eye Hospital approves merger with parent Dr Agarwal's Health Care

The transaction will result in consolidation of the business into a single entity

Dr Agarwal's Eye Hospital announced in an exchange filing on August 27 that its board of directors had approved a scheme of amalgamation with its listed parent Dr Agarwal's Healthcare Ltd by way of a merger (by absorption) as a going concern.

As per latest exchange data, Dr Agarwal's Health Care Ltd (AHCL) which made its Dalal Street debut in February, holds 71.90 per cent stake in Dr Agarwal's Eye Hospital Ltd (AEHL).

The proposed merger, subject to regulatory and shareholder approvals, is in consideration for the issuance and allotment of equity shares of AHCL to the shareholders of AEHL as per the share exchange ratio in the scheme of arrangement.

Moneycontrol had reported in January that the merger procedure would begin after the listing of AHCL, with the aim to complete the deal within 12 months, as per the firm's management. The red herring prospectus of AHCL had mentioned a three year timeline for the proposed merger between the two entities.

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Upon the scheme becoming effective, AHCL will issue and allot to the shareholders of AEHL (other than AHCL), 23 equity shares of face value of Rs 1 each of AHCL, for every 2 equity shares of face value of Rs 10 each held by such shareholders in AEHL.

Speaking on the announcement of the merger, Dr. Adil Agarwal, CEO, Dr. Agarwal's Health Care Limited said, “The merger is an important strategic step in the Group’s journey and will help unlock the full potential of the combined businesses. This long-awaited step towards building a simpler and more efficient group structure reflects our commitment to creating significant value for our stakeholders in the long term. We have been working diligently towards this milestone and, as committed to each of you, remain determined to complete the merger process at the earliest. We firmly believe that the approved swap ratio is fair, balanced, and in the best interests of all stakeholders, laying a strong foundation for the next phase of our growth.”

Along with the merger, the board of directors of AEHL has also approved issuance of 1,32,827 equity shares of the firm to AHCL by way of a preferential issue, having a face value of Rs 10 each, at a price of Rs 5,270/share.

AEHLs 31st Annual General Meeting will take place on September 24, 2025, the announcement added.