Dr Agarwal’s Healthcare IPO: Temasek, TPG-backed IPO mobilises ₹875 crore from anchor investors ahead of issue | Stock Market News

Temasek Holdings and TPG-backed Dr Agarwal’s Health Care, an eye care services provider, on Tuesday said it has raised over ₹875.5 crore from anchor investors ahead of its initial public offering (IPO). 

The Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, Morgan Stanley, Government Pension Fund Global (Norway), Fidelity, Nomura, Invesco Mutual Fund (MF), Motilal Oswal MF, Canara Robeco MF and Tata MF are among the anchor investors, according to a circular uploaded on BSE’s website.

As per the circular, the company has allotted 2.17 crore equity shares to 43 funds at ₹402 apiece, which is also the upper end of the price band. This aggregates the transaction size to ₹875.50 crore.

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 ₹3,027.26-crore public issue, with a price band of ₹382 to ₹402 per share, will be open for subscription from January 29 to January 31.

The IPO is a combination of a fresh issue of up to ₹300 crore and an Offer For Sale (OFS) of up to 6.78 crore equity shares worth ₹2,727.26 crore by promoters and other selling shareholders at the upper end of the price band.

The offer also includes a subscription for eligible employees. Those selling shares in the OFS include Arvon Investments Pte Ltd, Claymore Investments (Mauritius) Pte Ltd, and Hyperion Investments Pte Ltd.

Proceeds from the fresh issue to the tune of ₹195 crore will be used for payment of debt, and besides, a portion will be used for general corporate purposes and unidentified inorganic acquisitions.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for non-institutional investors and the remaining 15 per cent for retail investors.

Dr Agarwal’s Health Care offers a wide array of services, including cataract, refractive, and other surgeries, consultations, diagnosis, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care-related pharmaceutical items.

As of September 2024, its network consisted of 193 facilities with a majority concentration in South India, particularly Chennai, Hyderabad and Bengaluru, followed by Western India.

On the financial front, Dr Agarwal’s Health Care revenue from operations was ₹1,332.15 crore in the fiscal 2024 and profit after tax stood at ₹95.05 crore.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.