Dr Agarwal's Health Care raises Rs 875.5 crore via anchor book, out of Rs 3,027 crore IPO

Dr Agarwals Health Care IPO

Global private equity investors TPG and Temasek Holdings-backed eye care services provider Dr Agarwal's Health Care has raised Rs 875.5 crore via anchor book on January 28, a day before the IPO opening for public subscription. This would be the last IPO from the mainboard segment in the current month.

The Rs 3,027-crore initial share sale will open for three days during January 29-31, with a price band of Rs 382-402 per share. The IPO comprises of fresh issuance of shares worth Rs 300 crore, and an offer-for-sale of 6.78 crore shares worth Rs 2,727.26 crore by existing shareholders.

Apart from promoters, Temasek subsidiaries Arvon Investments and Claymore Investments (Mauritius), and TPG-owned Hyperion Investments will be the selling shareholders in the offer-for-sale.

"....has finalised allocation of 2.17 crore equity shares to anchor investors at a price of Rs 402 per share," said the parent company of listed entity Dr Agarwals Eye Hospital in its filing to exchanges.

Marquee names made investment in the company via anchor book included Goldman Sachs, Morgan Stanley, Tocu Europe, Government of Singapore, Monetary Authority of Singapore, Government Pension Fund Global, Fidelity, Nomura, Polar Capital Funds, The Prudential Assurance Company, and HSBC Global.

Domestic institutional investors like Invesco, Motilal Oswal Mutual Fund, Canara Robeco Mutual Fund, Edelweiss Trusteeship, Axis Max Life Insurance, 360 ONE LIC Mutual Fund, Aditya Birla Sun Life Insurance, Tata India Pharma & Healthcare Fund, and Edelweiss Life Insurance also invested in the Chennai-based eye care services chain.

"Out of the total allocation of 2.17 crore equity shares to anchor investors, 52.61 lakh shares were allocated to 6 domestic mutual funds, which have applied through a total of their 11 schemes," the company said.

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With 193 facilities, Dr Agarwal's Health Care had a market share of approximately 25% of the total eye care service chain market in India during FY24. On the international front, it also operates 16 facilities across nine countries in Africa.

The company that competes with several listed hospital entities intends to spend Rs 195 crore out of fresh issue proceeds for repaying debt and the remainder for general corporate purposes. The total debt on its books as of December 2024 was Rs 360.5 crore.

Further, the offer-for-sale money will be received by selling shareholders Arvon Investments, Claymore Investments (Mauritius), and Hyperion Investments which cumulatively hold 61.85 percent shares of the pre-offer paid up equity.

Dr Agarwal's Health Care is going to finalise the IPO shares allotment by February 3. Investors can start trading in company's equity shares on the BSE and NSE effective February 5.

The merchant bankers handling the public issue are Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors.