DRAGARWQ · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Dr Agarwals Eye Hospital (AEHL) has shared an investor presentation detailing the proposed merger with its promoter entity Dr Agarwal's Health Care Limited (AHCL), creating a single listed entity. Under the deal, AEHL shareholders (other than AHCL) will get 23 AHCL equity shares for every 2 AEHL shares, a 15% premium to AEHL's 10-day VWAP. AHCL also proposes a preferential allotment of Rs 70 crore to AEHL at Rs 5,270/share before the merger. AHCL already holds 71.9% in AEHL; post-merger shareholding will be ~30.9% promoters, 64.5% AHCL public, and 4.6% AEHL public. The transaction is expected to be EPS accretive from year one and complete by Q2 FY27, subject to shareholder, SEBI, stock exchange, and NCLT approvals. For FY25, AHCL reported Rs 1,711 crore revenue (28.4% YoY) and Rs 502 crore EBITDA, while AEHL posted Rs 397 crore revenue and Rs 124 crore EBITDA.
Existing AEHL shareholders get a 15% premium plus shares of the larger, more diversified AHCL entity with a net cash balance sheet (Rs 278 crore net cash). The merger simplifies the group structure and is expected to be EPS accretive, which is positive for shareholders, but completion remains subject to multiple regulatory approvals and a 12-14 month timeline.