Dr. Agarwal Hospital Group Merger and Valuation Concerns

"In consideration for the merger, AHCL will issue and allot 23 equity shares of itself for every 2 Equity Shares held in AEHL"

- Anirudha Jain

Recently, the management of Dr.Agarwal Hospital group, announced consolidation of its listed subsidiary company with recently listed holding cum operating company. Both entities, independently listed and engaged in the same line of business, have evolved through parallel expansions over the last decade. As holding company completes its listing on bourses, the management has approved a transaction involving a Scheme of Amalgamation by way of merger by absorption of Dr. Agarwal's Eye Hospital Limited (AEHL or the Transferor Company) with Dr. Agarwal's Health Care Limited (AHCL or the Transferee Company).

Dr. Agarwal's Eye Hospital Limited (AEHL) is a listed public limited company, incorporated on April 22, 1994, under the Companies Act, 1956. AEHL offers comprehensive eye care services through a network of 63 facilities. Its equity shares are listed on BSE Limited in 1995. AEHL is engaged in the business of running, owning, and managing eye care hospitals, pharmacies, and providing a comprehensive range of eye care services. As on date of approving this scheme, AEHL is a subsidiary of AHCL, which holds 71.90% of AEHL's paid-up equity share capital.

Dr. Agarwal's Health Care Limited (AHCL) is also a listed public limited company, incorporated on April 19, 2010, under the Companies Act, 1956. AHCL is engaged in the same business of running, owning, and managing eye care hospitals and providing comprehensive eye care services. With a strong operational legacy, AHCL serve's patients across 230 facilities in 14 states and 5 UTs in India, and 19 facilities in 9 countries in Africa. AHCL's equity shares are listed on the Stock Exchanges recently i.e. on February 4, 2025, following an Initial Public Offering (IPO). The IPO was mix of fresh issue & offer for sale.