New Delhi Centre For Sight Pvt Ltd, operator of the eye-care chain Centre For Sight, has filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India for its initial public offering (IPO).
The proposed public issue will comprise a fresh issue of shares and an offer for sale by promoters and investors.
The company is also looking to sell up to 1 million shares to raise around Rs 60 crore to investors ahead of the IPO. It did not share any details.
Several other healthcare firms, such as Narayana Hrudayalaya, Dr Lal PathLabs, Healthcare Global Enterprises and Alkem Laboratories, are also planning to launch IPOs.
Here's a snapshot of the IPO:
- The IPO would comprise a fresh issue of shares to raise about Rs 115 crore and an offer for sale of up to 2.54 million shares by existing shareholders - Mahipal Singh Sachdev, Ritika Sachdev, Dinesh Talvar, Lalit Verma, Alka Sachdev and Matrix Partners India.
Bankers: Axis Capital Ltd and ICICI Securities Ltd are managing the IPO.
Use of proceeds
- Of the total Rs 115 crore to be raised from issuing fresh shares, the company will use Rs 16.55 crore to construct a super-speciality eye care centre at Dwarka in Delhi; Rs 19.5 crore for pre-payment of some loans availed for the development of the Dwarka centre; and Rs 26 crore to set up six new eye care centers. It will also use Rs 28.6 crore to buy shares from other existing shareholders of CFS Netralaya and Rs 5.8 crore to buy shares from other shareholders of its subsidiaries, NVLC Hyderabad, NVLC Rajkot and Shree Hi-Tech. The remaining will be used for general corporate purposes.
- Founded in 1996 by Mahipal Singh Sachdev, the company conducts diagnostic and surgical eye care procedures for patients across all age groups.
- It manages 51 centres across 30 cities in India as on September 30, 2015, including four ophthalmology DIH centres, 14 standalone LASIK centres and seven LASIK facilities located within eye hospitals owned by third parties. It also has an in-house pharmacy (including for contact lenses) and optical outlets (for spectacles and spectacle accessories) located at 25 of its centres across India, as well as an eye bank located at a centre in New Delhi.
- As on September 30, 2015, the company engaged about 145 doctors, including Mahipal Singh Sachdev, VK Dada, and Harsh Kumar.
- With a strong footprint in north and west India, the company is expanding in other regions.
- In May 2012, the company had acquired a majority stake in Vadodara-based New Vision Laser Centre for $10 million.
- For 2014-15, it clocked revenue of Rs 151.12 compared with Rs 42.3 crore in 2010-11 with a CAGR of 37.48 per cent. It reported 2014-15 EBITDA about Rs 27 crore, which has grown at a four-year CAGR of 45 per cent.
In 2010, it raised Rs 50 crore from Martix Partners India in the first round of funding. The company then raised Rs 30 crore ($5 million) in fresh funding from Matrix Partners in 2013 through compulsory convertible preference shares.
Currently, Matrix owns about 18 per cent of the eye care chain and will be selling most of its stake.