Dr. Agarwal's Eye Hospital to Amalgamate into Dr. Agarwal's Health Care Limited

Dr. Agarwal's Eye Hospital to Amalgamate into Dr. Agarwal's Health Care Limited​

Dr. Agarwal's Eye Hospital Limited (AEHL) and Dr. Agarwal's Health Care Limited (AHCL) are proceeding with a Scheme of Amalgamation, where AEHL will merge into AHCL. The arrangement aims to create a stronger, unified entity capable of generating significant operational and financial synergies.

The meeting of the Secured Creditors of AEHL has been scheduled to consider and, if deemed appropriate, approve the amalgamation scheme. This meeting is slated for Thursday, July 02, 2026, at 10:30 A.M. IST, at The Music Academy, T.T.K. Road, Chennai - 600 014.

Amalgamation Scheme Details​

The Scheme proposes the amalgamation of AEHL (the Transferor Company) with AHCL (the Transferee Company). The transaction will consolidate the businesses of both entities, leading to a simplified legal and governance framework.

The key feature of the scheme is the conversion of shareholdings based on a fixed ratio. The valuation report, issued jointly by M/s. PwC Business Consulting Services LLP and M/s. Bansi S. Mehta Valuers LLP, determined that the share exchange ratio is:

Financial and Operational Impact​

The combined entity is expected to benefit from improved capital allocation and resource pooling, facilitating economies of scale and enhanced operational efficiency. The parties anticipate the scheme will be accretive to Earnings Per Share (EPS) from the first year of implementation.

Share Capital Reorganization:
As part of the scheme's effect, the authorized share capital of the Transferor Company (AEHL) will be reorganized. The existing 2,00,00,000 Equity Shares of INR 10 each will be reclassified and reorganized into 20,00,00,000 Equity Shares of INR 1 each. This reclassification pertains solely to the authorized share capital and does not alter the issued, subscribed, or paid-up share capital of AEHL.

Post-Amalgamation Capital Structure of AHCL:
The combined entity, AHCL, will reflect the following authorized share capital structure:

Stakeholder Treatment​

Creditors:
The scheme does not involve any compromise or arrangement with the creditors. The liabilities of AEHL and AHCL to their secured and unsecured creditors are neither being reduced nor extinguished. Dues payable by AEHL to its creditors will be paid by AHCL in the ordinary course of business as and when they become due.

Board Approvals and Validation:
The boards of both AHCL and AEHL adopted separate reports on August 27, 2025, detailing the scheme's effect on various stakeholders. The reports emphasized that the amalgamation is expected to be in the best interests of all shareholders.

Key Valuation Inputs:
The valuation, which formed the basis for the share exchange ratio, utilized multiple methodologies:

* Income Approach: Used Discounted Cash Flow (DCF) and relied on projected Compound Annual Growth Rates (CAGR) for the period FY25-FY30.
* AHCL’s projected CAGR is approximately 22.0%.
* AEHL’s projected CAGR is approximately 20.6%.
* Market Approach: Included market price and comparable companies' multiples methods.

Stakeholder Data Snapshot​

DRAGARWQ Stock Price Movement​

Shares of Dr Agarwals Eye Hospital Limited are edging higher to ₹5020 as of 1:20 PM today, having gained 1.08% or ₹53.50 in live trading. The stock activity remains brisk, with a daily traded volume of 825 shares bolstering its upward momentum.