Dr. Agarwal’s has 1.65m shares change hands in a block trade

Dr. Agarwal’s has 1.65m shares change hands in a block trade

In a significant development, shares of Dr. Agarwal’s Eye Hospital Ltd. (AEHL) experienced substantial volatility following the announcement of a merger with Dr. Agarwal’s Health Care Ltd. (AHCL), the group’s flagship eye care chain. The merger, approved by the boards of both companies, aims to consolidate operations under a single entity.

The proposed share exchange ratio, as per the scheme of amalgamation, entails that shareholders of AEHL will receive 23 equity shares of AHCL for every 2 equity shares of AEHL held, excluding AHCL’s existing stake. Additionally, AEHL is set to issue approximately ₹70 crore worth of shares at an issue price of ₹5,270 per share.

The merger is anticipated to streamline decision-making, unify capital allocation, and create operational efficiencies across the group’s eye care businesses. Dr. Adil Agarwal, CEO of AHCL, underscored that the merger is a strategic milestone to unlock long-term value and strengthen the group’s position as India’s largest eye care service chain.

The transaction is advised by Kotak Investment Banking, Motilal Oswal, PwC Business Consulting Services, and Trilegal. The scheme is subject to shareholder and regulatory approvals. Over the past three and five years, AEHL has provided shareholders with multibagger returns of more than 455% and 1,640%, respectively.

Shares of AEHL fell as much as 18% intraday, reaching a low of ₹4,231.00, reflecting market reactions to the merger news. This volatility underscores the potential impact of the merger on the company’s shareholder value and market position.

References:
[1] https://www.share.market/buzz/news/dr-agarwals-eye-hospital-shares-merger/