Dr Agarwals Healthcare, the parent company of Dr Agarwals Eye Hospital, is gearing up for a significant move in the financial world. The healthcare giant has initiated plans to launch an initial public offering (IPO) aiming to raise approximately Rs 3,000 crore in the financial year 2025. This move comes as the company seeks to unlock value and fuel expansion in the healthcare sector.
According to sources familiar with the matter, Dr Agarwals Healthcare has engaged five leading investment banks as advisors for the IPO. Kotak Mahindra Capital, Jefferies, BofA Securities, Morgan Stanley, and Motilal Oswal Financial Services have been roped in for the crucial task.
The proposed IPO, a combination of primary and secondary issues of shares, is intended to attract fresh investors and provide an exit window for private equity players. Dr Agarwals Healthcare, backed by prominent investors Temasek and TPG Growth, holds a significant stake in its subsidiary Dr Agarwals Eye Hospitals, established in 1994.
This IPO initiative aligns with the company’s ambitious plans for rapid expansion and investment in cutting-edge technologies. It also marks a strategic move to tap into the growing demand for healthcare assets in the market.
The healthcare sector has witnessed remarkable growth, with the Nifty Healthcare Index surging by 58 percent in the past year. If successful, this IPO could emerge as the most substantial offering by a healthcare/hospital chain since the IPO of Global Health Ltd in 2022.
Dr Agarwals Healthcare IPO
Dr Agarwals Healthcare aims to leverage the IPO proceeds to bolster its network and stay at the forefront of technological advancements. The company’s growth trajectory and differentiated formats make it an attractive proposition for investors.
However, the company’s executives remained tight-lipped regarding the IPO plans. Despite attempts to reach out for comments, both Dr Agarwals Healthcare and Dr Agarwals Eye Hospitals refrained from providing insights into the matter.
Investment banks involved in the process were also unavailable for immediate comment. Temasek and TPG declined to comment on the development.
Dr Agarwals Eye Hospitals, with a market capitalization of Rs 1,413 crore, has demonstrated robust performance, with its stock witnessing a significant uptick in recent months. The company, led by Chairman Prof. (Dr.) Amar Agarwal, operates a vast network of 151 centres across India and Africa, offering comprehensive eye care services.
The impending IPO reflects the company’s commitment to innovation, expansion, and delivering quality healthcare services to millions of patients. As the healthcare landscape continues to evolve, Dr Agarwals Healthcare remains poised for a transformative journey in the financial markets.