Dr. Agarwal's Eye Hospital , a leading eye care provider, has announced its financial results for the quarter and half-year ended September 30, 2023, along with several key corporate decisions.

Financial Results and Dividend Declaration

The Board of Directors has approved the unaudited financial results for the quarter and half-year ended September 30, 2023. The company has declared an interim dividend of ₹3 per equity share of ₹10 each for the financial year 2023-24.

Key details of the dividend:

• Amount: ₹3 per equity share (30% on face value of ₹10)
• Record Date: November 7, 2023
• Payment Date: On or before November 29, 2023

Shareholders whose names appear on the Register of Members or in the records of the depositories as beneficial owners on the record date will be eligible to receive the dividend.

Proposed Amalgamation

The Board has approved a proposed scheme of amalgamation with Dr. Agarwal's Health Care Limited. This decision is subject to necessary shareholder and regulatory approvals.

Preferential Issue of Shares

The company has completed a preferential issue of 4,32,827 equity shares at ₹5,270 per share to Dr. Agarwal's Health Care Limited. These shares were allotted on September 26, 2023. The proceeds from this preferential allotment are currently invested in debt mutual funds, pending utilization.

Business Segment

Dr. Agarwal's Eye Hospital operates in a single segment of eye care related sales and services.

Corporate Governance

The company has adhered to regulatory requirements by promptly disclosing the outcome of its Board meeting. The unaudited financial results for the quarter and half-year ended September 30, 2023, have been approved by the Board.

These developments, including the interim dividend declaration, proposed amalgamation, and successful preferential share issue, reflect Dr. Agarwal's Eye Hospital's corporate strategy and commitment to shareholder value.

Dr. Agarwal's Eye Hospital Limited (DAEHL) has taken a significant step towards consolidating its operations with its parent company, Dr. Agarwal's Health Care Limited (AHCL). The Board of Directors of DAEHL has approved a merger scheme and a preferential share allotment, which are set to reshape the company's structure and ownership.

Merger Scheme Details

The approved scheme of amalgamation involves the merger of DAEHL into AHCL through absorption. Under this arrangement, AHCL will issue 23 equity shares for every 2 shares held by DAEHL shareholders, excluding AHCL itself. This merger is subject to various regulatory approvals, including those from stock exchanges, the Securities and Exchange Board of India (SEBI), shareholders, creditors, and the National Company Law Tribunal.

Preferential Share Allotment

In addition to the merger, DAEHL's Board has approved the issuance of 1,32,827 equity shares to AHCL through a preferential allotment. These shares, with a face value of ₹10 each, will be issued at a price of ₹5,270 per share. This move is expected to increase AHCL's stake in DAEHL from 71.90% to 72.67%.

Financial Snapshot

To provide context on the scale of this merger, here's a brief financial overview of both companies:

*Excluding non-controlling interest of ₹60.23 Crores

Rationale and Expected Benefits

The merger aims to achieve several strategic objectives:

1. Operational and Financial Efficiencies: Integration of operations is expected to lead to more efficient management and economies of scale.
2. Integrated Capital Allocation: A unified capital structure should allow for more efficient allocation of resources and strategic investments.
3. Simplified Governance: The merger will consolidate administrative functions and streamline the corporate structure.
4. Shareholder Value Creation: The companies anticipate accretion in earnings per share from the first year of implementation, potentially benefiting all stakeholders.

Timeline and Approvals

The merger intention was previously disclosed in AHCL's IPO prospectus when it listed. DAEHL has scheduled its 31st Annual General Meeting for September 24, where these matters will likely be discussed further.

Market Implications

This merger represents a significant consolidation in the eye care hospital business in India. As both DAEHL and AHCL operate in the same sector, the combined entity is poised to leverage their shared expertise and resources more effectively.

The proposed changes are subject to necessary statutory and regulatory approvals. Investors and stakeholders will be watching closely as this transaction progresses through the various stages of approval and implementation.