Dr Agarwal's Healthcare may launch IPO between Jan 29-31; valuation between Rs 12,700-Rs 12,900 crore

The anchor book portion is planned for January 28, these sources added.

TPG and Temasek-backed top eye care services provider Dr Agarwal's Healthcare, the parent of listed firm Dr Agarwal's Eye Hospital, is planning to launch it's initial public offer (IPO) between January 29 to January 31 at a post-money valuation of Rs 12,700 crore to Rs 12,900 crore, multiple industry sources in the know told Moneycontrol.

The anchor book portion is planned for January 28, these sources added.

An email query to Dr Agarwal's Healthcare remained unanswered at the time of publishing this article.

The firm, which had filed its draft papers on September 27, holds a 71.9 percent stake in subsidiary Dr Agarwal's Eye Hospital that was incorporated back in 1994.

As per the draft papers, the IPO is a mix of fresh issue of equity shares worth Rs 300 crore by the company, and an offer-for-sale of 6.95 crore equity shares by promoters and investors.

Moneycontrol was the first to report in March 2024 that Dr Agarwals Healthcare had engaged investment banks as advisors and kicked off the process to launch an initial public offer and raise around Rs 3,000 crore in FY25.

Over and above the promoter group, TPG and Temasek will be the selling shareholders in the offer-for-sale ( OFS)

The promoters own a 37.83 percent stake in Dr Agarwal's Healthcare. TPG holds 33.75 per cent while Temasek holds 28.18 per cent.

Kotak Mahindra Capital, Jefferies, Morgan Stanley and Motilal Oswal are the merchant bankers to the issue by Dr Agarwal's Healthcare.

A closer look at Dr Agarwal's Healthcare

With 165 facilities in India and 15 globally (including 9 in Africa), the Tamil Nadu-based company provides eye care services including cataract, refractive, and other surgeries as well as sells  opticals, contact lenses and accessories, and eye care-related pharmaceutical products. It had a market share of approximately 25 percent of the total eye care service chain market in India during the fiscal 2024.

Dr Agarwal's Healthcare will utilise Rs 195 crore out of the net fresh issue proceeds for repaying its debt, and the remaining funds for general corporate purposes and inorganic growth as per the draft papers.

The Indian eye care industry is projected to grow at a CAGR of 12-14 percent from FY24 to FY28. The size of the Indian eye care services industry was approximately Rs 37,800 crore in fiscal 2024 and is projected to grow to Rs 55,000-65,000 crore by FY28, as per the draft papers of Dr Agarwal's Healthcare.