Mumbai: Dr Agarwals Health Care Ltd (AHCL), mum or dad of publicly listed Dr Agarwals Eye Hospital Ltd (AEHL), is planning a $300–400 million public share sale later this 12 months, three folks conscious of the plans stated.

The firm, which is 60% owned by TPG and Temasek, will hear IPO pitches from funding bankers this week, the folks cited above stated, including they anticipate it to fetch a valuation of $1.8–2 billion.

“The IPO might be a combination of main and secondary fundraise, with traders TPG and Temasek prone to search a partial exit,” one of the people cited above said on the condition of anonymity. “The final deal contours will be decided in a few months.”

“The mum or dad is trying to listing. A reverse merger with the subsidiary wouldn’t be equitable for all events, however after the itemizing of the mum or dad, the 2 entities will merge,” the particular person cited above added.

AHCL didn’t reply to queries, whereas Temasek and TPG declined to remark.

The hospital chain was based by Dr Amar Agarwal as a single clinic in Chennai in 1957. Over the previous few years, it arrange chains throughout a number of states. While the mum or dad firm AHCL has a bigger variety of property beneath its belt, the listed subsidiary AEHL has fewer.

AHCL operates in Maharashtra, Tamil Nadu, Punjab and Delhi, and holds over 71% in AEHL. AEHL owns some hospitals in Tamil Nadu, and has a market worth of round ₹1360 crore on the BSE.

Between the mum or dad and the subsidiary, the hospitals provide eye care companies for cataract, laser correction, vitreo-retinal surgical procedure, corneal transplant, glaucoma and squint. Super-speciality eye care companies reminiscent of paediatric ophthalmology, ocular oncology, neuro-ophthalmology, uvea and oculoplasty are additionally supplied at its tertiary hubs, in response to its web site.

In 2019, AHCL raised capital from Temasek. Over 2022 and 2023, TPG and Temasek put in more cash. Following the final spherical in August 2023, its fairness valuation stood at over ₹6,000 crore, group founder and chairman Amar Agarwal stated in an interview with the Mint in August. Agarwal stated the corporate plans to double its eye centres throughout India from round 150 clinics.

A Crisil credit standing report dated 6 September 2023 stated the corporate’s monetary threat profile has strengthened on the again of current fairness infusion from current traders. “[T]he enterprise efficiency continues to stay sturdy with regular and sustained stabilization of the lately added centres. Net price would enhance to over ₹1,200 crore by the tip of the present fiscal (FY24) leading to a pointy enchancment in capital construction,” the report stated.

The report added that fairness raised by Dr Agarwals would assist gasoline medium time period by greenfield growth and acquisition.

“The group is estimated to develop at over 30% CAGR within the present fiscal whereas the expansion would witness acceleration over the approaching fiscals with the addition and scaling up of centres. The well timed ramp up and stabilization of operations within the newly added centres would stay key ranking monitorable,” the report stated.

Dr Agarwals Health Care reported consolidated internet gross sales of round ₹1,018 crore for FY23, on a revenue of ₹103 crore, up from a income of ₹696 crore, on a revenue of ₹43.1 crore, in response to knowledge platform VCCEdge. Several traders are opting to listing their firms because of the wealthy multiples supplied within the main markets. The Sensex and the Nifty have each risen sharply during the last 12 months —the Nifty is up over 22%, whereas the Sensex is up over 18% year-to-date.

“We stay structurally optimistic within the hospitals area and anticipate momentum to proceed in FY24 with enchancment in occupancy, higher case- payor combine and new capability additions,” stated a analysis report on the hospital sector revealed by brokerage Prabhudas Lilladher dated 6 October 2023.