Ahead of its ₹3,062 crore Initial Public Offering (IPO) launch, the management of Chennai headquartered Dr. Agarwal’s Health Care Limited said there has been a phenomenal growth in the eye-care market in India.
The IPO includes a ₹300 crore primary raise, with the balance ₹2,762 crore from a secondary sale by existing shareholders. During a press meet here in Chennai, officials from Dr.Agarwal’s Health Care Limited said that about ₹195 crore of the IPO proceeds will go towards reducing gross debt which now stands at ₹373 crore. While the remaining will be utilized for general corporate purposes and unidentified inorganic acquisitions.
The IPO opens on January 29, 2025 and closes on January 31,2025. Investors can bid for a minimum of 35 equity shares and in multiples of 35 equity shares thereafter.
“We currently have 209 hospitals. Last year, we launched 45 eye hospitals, and this year, we’ve opened 30 more. On average, we are opening one hospital each week,” Amar Agarwal, chairperson and managing director of Dr. Agarwals Eye Hospital. As of September 30, 2024, the company operates 193 facilities in India across 117 metro and non-metro cities spanning 14 states and four union territories, along with 16 facilities spread across nine countries in Africa. The company operates through a hub-and-spoke and asset-light operating model.
“The eye-care market in India is now pegged at ₹37,800 crore,” Adil Agarwal, whole time director and CEO, Dr.Agarwal’s Healthcare Ltd. said. The eye-care market in India has grown at a CAGR if 11.5% between financial years 2019 and 2024 to reach the value of ₹378 billion in financial year 2024. This market includes surgical and non-surgical treatments for patients suffering from various eye disorders. Also, India has the highest number of visually impaired people in the world as nearly 1 out of every 5 individuals in India face vision loss disorder.
To a query on how much does the group invest in new facilities, Yashwanth Venkat, CFO, the company and Mr. Adil said: “The capex for a primary care facility (700-1,500 sq ft) is around ₹30 lakh to ₹35 lakh. And for a secondary care centre (4,000-7,000 sq ft) the cost involved is ₹4.5 crore to ₹7 crore. For tertiary care (8,000 sq ft and above) the investments are around ₹10 crore to ₹12 crore.”
Dr. Agarwal’s Health Care, provides end-to-end comprehensive eye care services, including cataract, refractive and other surgeries; consultations, diagnoses and non-surgical treatments; and sells opticals, contact lenses and accessories, and eye care related pharmaceutical products through its network of 209 facilities as of September 30, 2024. According to a CRISIL MI&A report cited in its red herring prospectus, the company held about 25% of the total eye care service chain market in India in the financial year 2024.
Published – January 25, 2025 07:30 pm IST
