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The Boards of Directors of Dr. Agarwal's Health Care Limited (AHCL) and Dr. Agarwal's Eye Hospital Limited (AEHL) at their respective meetings have approved the scheme of amalgamation of these independently listed companies under the Dr. Agarwal’s Group. The Scheme is subject to the requisite approvals from respective shareholders of AHCL and AEHL and the applicable regulatory approvals.
The merged entity inter-alia brings together significant complementarities that exist between both the entities and is poised to create meaningful value for various stakeholders, including respective patients, employees, and shareholders of both entities. The merger will consolidate the businesses of AHCL and AEHL into a single entity, enabling operational and financial efficiencies through streamlined functions and agile decision-making.
It will provide unified capital allocation and a stronger balance sheet to support future growth, alongside a simplified legal, regulatory and governance framework. Overall, the transaction is expected to enhance shareholder value and be EPS accretive from the first year of implementation.
The Board of Directors of AEHL have also approved a preferential issue of approximately Rs 70 crore, comprising 1,32,827 equity shares at an issue price of Rs 5,270 per share, representing 2.7% of AEHL’s equity share capital. This is subject to receipt of requisite approvals under applicable law. Upon the completion of the preferential issue, the issued, subscribed and paid-up equity share capital of AEHL will increase to the extent of the equity shares issued. This preferential allotment shall have no impact on the eventual public shareholding of the merged entity.
