Synopsis:
Dr. Agarwal’s Eye Hospital and Dr. Agarwal’s Health Care will merge to streamline operations, strengthen capital allocation, and enhance shareholder value; merger completion is expected by Q2 FY27, subject to regulatory approvals.
As per the latest exchange filings, Dr. Agarwal’s Eye Hospital Limited (AEHL) and Dr. Agarwal’s Health Care Limited (AHCL), both independently listed entities under the Dr. Agarwal’s Group, have received Board approval for a proposed scheme of amalgamation. The merger is subject to the necessary approvals from shareholders of both companies as well as regulatory authorities.
The merged entity is expected to leverage the synergies between AEHL and AHCL, creating meaningful value for respective patients, employees, and shareholders. The merger will also consolidate the businesses of AHCL and AEHL into a single entity, enable operational and financial efficiencies, improve financial and capital allocation efficiency, strengthen the balance sheet, and simplify the legal, regulatory, and governance frameworks. Overall, the transaction is expected to deliver shareholder value and be EPS accretive from the first year of implementation.
Under the approved share exchange ratio, AHCL will issue and allot 23 new fully paid-up equity shares of the face value of Re. 1 each, for every 2 fully paid-up equity shares of the face value of Rs. 10 each held by the eligible AEHL shareholders (excluding AHCL’s existing stake).
Additionally, AEHL’s Board has approved a preferential issue of ~Rs. 70 crores, comprising 1,32,827 equity shares at an issue price of Rs. 5,270 per share, representing 2.7 percent of its equity share capital, subject to applicable approvals.
Following the completion of the preferential issue, AEHL’s issued, subscribed, and paid-up equity share capital will increase by the number of shares allotted. However, this issuance will not affect the eventual public shareholding in the merged entity. The merger is expected to be completed by Q2 FY27, following multiple approvals from shareholders, stock exchanges, SEBI and NCLT.
Dr. Agarwal’s Health Care Limited
With a market cap of Rs. 13,712 crores, shares of India’s largest eye care services chain moved down by around 6 percent on BSE to hit an intraday low at Rs. 432.4 on Thursday.
AHCL reported a significant growth in its revenue from operations, showing a year-on-year increase of around 21 percent from Rs. 403 crores in Q1 FY25 to Rs. 487 crores in Q1 FY26. Similarly, its net profit increased during the same period from Rs. 18 crores to Rs. 38 crores, representing an impressive rise of about 111 percent YoY.
As of FY25, the company operates 230 facilities across India, serving over 2.43 million patients, with a team of 830+ doctors and 1,845+ paramedics. It also manages 19 facilities in Africa and has performed more than 2,82,000 surgeries.
Dr. Agarwal’s Eye Hospital Limited
With a market cap of Rs. 2,115 crores, shares of a leading eye care services chain primarily across Tamil Nadu moved down by around 18 percent to hit an intraday low at Rs. 4,231 on BSE.
AEHL reported a significant growth in its revenue from operations, showing a year-on-year increase of around 17 percent from Rs. 100 crores in Q1 FY25 to Rs. 117 crores in Q1 FY26. Similarly, its net profit increased during the same period from Rs. 14 crores to Rs. 17 crores, representing a rise of about 21 percent YoY.
In FY25, the company reported a total of 63 facilities in India, treating over 5,88,000 patients, supported by 230+ doctors and 475+ paramedics. Surgeries performed exceeded 62,000, with facility count growing 2.4x since FY22.
Written by Shivani Singh
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