Shares of Dr Agarwal’s Eye Hospital Ltd tumbled as much as 18 percent on Thursday, August 28, after the company announced that its board of directors approved a merger scheme with its listed parent, Dr Agarwal’s Healthcare Ltd.

Merger Details

Dr Agarwal’s Healthcare, which made its stock market debut in February 2025, currently holds a 71.90 percent stake in Dr Agarwal’s Eye Hospital. The merger is aimed at consolidating the businesses under a single listed entity, streamlining operations, and unlocking synergies across the group’s eye care and healthcare services.

Market Reaction

Following the announcement, shares of Dr Agarwal’s Eye Hospital witnessed heavy selling pressure, dragging the stock down by nearly 18 percent during intraday trade. Market participants pointed to concerns over merger ratios, shareholding structure, and potential dilution for minority shareholders as key reasons for the decline.

Strategic Significance

Industry experts believe the merger could strengthen the group’s position in the healthcare and specialty eye care sector by providing an integrated platform, improving operational efficiency, and enhancing capital access for future expansion. However, in the near term, investor sentiment is likely to remain cautious until further clarity emerges on merger valuations and swap ratios.

Outlook

While the merger is expected to create a larger, unified healthcare entity, analysts suggest that regulatory approvals, valuation clarity, and integration strategy will determine the stock’s long-term performance.