Shares of Dr Agarwal’s Eye Hospital Ltd (AEHL) plunged as a lot as 18 per cent on Thursday, August 28, after the corporate introduced a merger with its listed father or mother — Dr Agarwal’s Well being Care Ltd (AHCL). The sharp fall got here as traders appeared to react negatively to the proposed share-swap association.
By 1:15 p.m., AEHL shares had been buying and selling at Rs 4,476.35, down over 13 per cent from the earlier shut. With this transfer, the inventory has now misplaced almost 31 per cent year-to-date. Shares of AHCL, which made its market debut in February 2025, had been additionally down by round 6 per cent, buying and selling at Rs 430 per share.
Merger Particulars and Share Swap Ratio
The merger, which is topic to regulatory and shareholder approvals, will likely be executed by way of absorption. AHCL presently owns 71.90 per cent of AEHL, in response to current trade information.
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Beneath the proposed association, shareholders of AEHL (excluding AHCL) will obtain 23 fairness shares of AHCL (face worth Rs 1 every) for each 2 fairness shares of AEHL (face worth Rs 10 every) held.
Why the Merger?
Dr Adil Agarwal, CEO of Dr Agarwal’s Well being Care Ltd, referred to as the transfer a strategic milestone within the group’s long-term imaginative and prescient.
“The merger is a crucial step within the Group’s journey and can assist unlock the total potential of the mixed companies,” he mentioned. “This long-awaited step in the direction of constructing a less complicated and extra environment friendly group construction displays our dedication to creating important worth for our stakeholders in the long run.”
Market Sentiment Weak Regardless of Strategic Pitch
Regardless of the administration’s optimistic tone, market members appeared unconvinced, as each AEHL and AHCL shares got here underneath strain. Expers imagine the speedy response displays uncertainty across the share-swap ratio and potential dilution issues for minority shareholders.
