Dr. Agarwal's entities to merge, aiming for streamlined eye care operations

Dr. Agarwal's Health Care Limited (AHCL) and Dr. Agarwal's Eye Hospital Limited (AEHL) have announced a merger, approved by their respective boards of directors on August 27, 2025. This strategic move aims to consolidate their businesses, fostering operational and financial efficiencies, streamlined functions, and agile decision-making. The merger is expected to enhance shareholder value and be EPS accretive from the first year of implementation.

Under the scheme, AHCL will issue 23 new equity shares (face value Re. 1/- each) for every 2 equity shares (face value Rs. 10/- each) held by eligible AEHL shareholders, excluding AHCL's existing stake. AEHL’s board also approved a preferential issue of approximately ₹70 crores, comprising 132,827 equity shares at ₹5,270 per share, representing 2.7% of AEHL's equity share capital, pending approvals. This preferential allotment will not impact the merged entity's public shareholding.

AHCL, India's largest eye care service chain by revenue, operates across 230 facilities in India and 19 in Africa. AEHL, incorporated in 1994, is a leading eye care chain predominantly in Tamil Nadu, with 63 facilities and a 71.9% stake held by AHCL. Kotak Investment Banking and Motilal Oswal provided fairness opinions, with PwC and Bansi S. Mehta Valuers acting as valuation advisors.