Dr. Agarwal's Health Care Limited has informed the Exchange regarding a press release dated August 27, 2025, titled "Dr. Agarwal's Health Care Limited and Dr. Agarwal's Eye Hospital Limited announce merger".
AGARWALEYE · price
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The Boards of Dr. Agarwal's Health Care Limited (AHCL) and Dr. Agarwal's Eye Hospital Limited (AEHL) have approved a scheme of amalgamation to merge the two listed companies under the Dr. Agarwal's Group into a single entity. Under the swap ratio, AHCL will issue 23 new equity shares (face value Re. 1) for every 2 AEHL shares (face value Rs. 10) held by AEHL shareholders other than AHCL. Additionally, AEHL's board has approved a preferential issue of approximately ₹70 crores at ₹5,270 per share (2.7% of its equity capital), which will not affect the merged entity's public shareholding. The merger was previously disclosed in AHCL's January 2025 IPO prospectus and is expected to be EPS accretive from the first year, subject to shareholder and regulatory approvals. AHCL is India's largest eye care chain by revenue with 230 facilities in India and 19 in Africa, while AEHL operates 63 facilities mainly in Tamil Nadu.
For AHCL shareholders, the merger consolidates operations and is expected to enhance shareholder value with EPS accretion from year one, though it remains subject to shareholder and regulatory approvals. Existing AHCL shareholders will see some dilution from shares issued to AEHL's minority shareholders, but the preferential issue structure keeps the public shareholding of the merged entity unchanged.