New Delhi Centre for Sight is a leading eye care service provider in India, under the well-recognized and trusted brands “Centre for Sight” and “New Vision Laser Centres” (Source: The CRISIL Report).
New Delhi Centre For Sight Ltd. has filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India for its initial public offering (IPO) on 30th November 2015. The launch of the IPO will be subject to market conditions.
The draft red herring prospectus states that the Company intends to establish six new eye care centres in India including two hubs and a spoke in Gujarat. The draft red herring prospectus further states that the Company intends to deploy Rs. 26 crore for establishing six new eye care centres in Gujarat, Delhi NCR, Haryana and Uttar Pradesh over the course of fiscal 2017 and fiscal 2018.
As per the draft red herring prospectus, the Company’s network of 51 eye care centres across 30 cities in India as on September 30, 2015 included nine centres in Gujarat. It has established hubs in Vadodara, New Delhi, Hyderabad, Jaipur and Indore in the recent past and will focus on increasing market penetration by adding smaller secondary centres around these hubs.
With a strong footprint in North and West India and growing presence in other regions, based on scalable hub-and-spoke business model and track record of organic as well as inorganic growth, company believes that it is well positioned to provide high-quality professionally managed eye care throughout India.
CRISIL Research estimates the eye care delivery market size in India stood at Rs. 158 billion in 2014-2015 as compared to Rs. 141 billion in 2013-2014. Surgery dominates the market with a share of 83% while outpatient services (consultation, diagnostics, etc.) comprise the remainder 17% (as of 2014-2015). The draft red herring prospectus states that the Company will seek to enter into newer markets – particularly in underserved local markets, while also consolidating presence and increasing penetration within existing geographies. It strives to grow presence in tier-two cities where it believes the demand for eye care services may be substantial, along with a corresponding higher level of household incomes among the local populace (as compared to smaller towns). It believes that medical tourism would also encourage demand for eye care services in India.