Dr. Agarwal’s Health Care & Eye Hospital Approves Merger to Streamline Operations

The decision, taken at the respective Board meetings of both companies, is subject to approvals from shareholders and regulators.

Dr. Agarwal's Health Care Limited (AHCL) and Dr. Agarwal's Eye Hospital Limited (AEHL) have approved a merger to consolidate their operations under the Dr. Agarwal’s Group. 

The decision, taken at the respective Board meetings of both companies, is subject to approvals from shareholders and regulators.

The combined entity is expected to deliver operational and financial efficiencies through streamlined functions, unified capital allocation, and a stronger balance sheet. The merger also aims to simplify the legal, regulatory, and governance structure, while being earnings per share (EPS) accretive from the first year of implementation.

AHCL, which was listed on the stock exchanges on February 4, 2025, had outlined in its prospectus the possibility of exploring a merger with AEHL within three years of listing. 

The current move fulfills that commitment and is being positioned as a milestone in strengthening the group’s long-term growth strategy.

As per the approved share exchange ratio, AHCL will issue and allot 23 new equity shares of Re. 1 each for every 2 equity shares of INR 10 each held by eligible AEHL shareholders, excluding AHCL’s existing stake.

In addition, AEHL’s Board has cleared a preferential issue worth INR 70 crore. This will comprise 1,32,827 equity shares at INR 5,270 per share, representing 2.7 per cent of AEHL’s equity capital. 

The allotment, subject to approvals, will not impact the eventual public shareholding of the merged entity.

Commenting on the development, Dr. Adil Agarwal, CEO, Dr. Agarwal's Health Care Limited, said, “The merger is an important strategic step in the Group’s journey and will help unlock the full potential of the combined businesses. This long-awaited step towards building a simpler and more efficient group structure reflects our commitment to creating significant value for our stakeholders in the long term. We firmly believe that the approved swap ratio is fair, balanced, and in the best interests of all stakeholders, laying a strong foundation for the next phase of our growth.”

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