Eye hospital shares tank on merger with healthcare arm
Dr. Agarwal's Eye Hospital shares fell as much as 18% on Thursday after the company announced merging with Dr. Agarwal's Healthcare.
The move, announced August 27, still needs a green light from regulators and shareholders, but aims to bring all their eye care operations under one roof for smoother management.
Merger aims to streamline operations
The merger is designed to make the business run more efficiently and boost financial performance—potentially good news for shareholders in the long run.
If you own Eye Hospital shares, you'll get 23 new Health Care shares for every two you hold—a swap that's actually at a premium over recent prices.
Investors take cautious approach
Even with these perks, investors reacted cautiously: Eye Hospital shares fell to ₹4,489 (down nearly 13%), while Health Care slipped too.
The dip may reflect nerves about waiting for all approvals before anything changes—so it's a classic case of "wait and watch" in action.