The scheme is subject to the requisite approvals from their respective shareholders of both the companies, as well as other regulatory approvals.
This merger will consolidate the businesses of both these companies in to a single entity, enabling operational and financial efficiencies through streamlined functions. Unified capital allocation and a stronger balance sheet to fund future growth, simplified legal, regulatory and governance framework are cited as some of the other reasons behind this merger.
Overall, the transaction is expected to enhance shareholder value and be EPS accretive from the first year of implementation, Dr. Agarwal’s Eye Hospital said in its exchange filing.Listed in February this year, Dr. Agarwal’s Health Care had expressed its intention to explore a potential merger with the Eye Hospital entity within three years of listing.
Dr. Agarwal Health Care will issue and allot 23 new equity shares of face value ₹1 each, for every two equity shares of ₹10 each held by shareholders of Dr. Agarwal Eye Hospital as on the record date. In addition to this, Dr. Agarwal Health Care has also approved a preferential issue of shares worth ₹70 crore, comprising of a 1.32 lakh equity shares at an issue price of ₹5,270 per share. This represents 2.7% of the company’s total equity share capital.
“The merger is an important strategic step in the Group’s journey and will help unlock the full potential of the combined businesses. This long-awaited step towards building a simpler and more efficient group structure reflects our commitment to creating significant value for our stakeholders in the long term,” Adil Agarwal, CEO of Dr. Agarwal’s Health Care said.
Shares of Dr. Agarwal’s Eye Hospital ended 13.5% lower at ₹4,448, while those of Dr. Agarwal Health Care ended 4.6% lower at ₹438.6. The stock is just about holding above its IPO price of ₹402.
First Published: Aug 28, 2025 11:21 AM IS
