Dr Agarwal’s Health Care IPO has opened for bidding today, offering shares in the price band of Rs 382-402 per share. The company aims to raise Rs 3,027.26 crore, which includes a fresh issue of Rs 300 crore and an offer-for-sale (OFS) worth Rs 2,727.26 crore. Investors can apply for a minimum of 35 shares and in multiples thereafter, with the IPO closing on January 31, 2025.
About Dr Agarwal’s Health Care
Founded in 2010, Dr Agarwal’s Health Care is a Chennai-based company offering a comprehensive range of eye care services, including:
- Cataract and refractive surgeries
- Eye care consultations and diagnoses
- Non-surgical treatments
- Sale of optical products, contact lenses, and eye care pharmaceuticals
As of September 30, 2024, the company had 737 doctors providing services across its facilities, serving 2.13 million patients and conducting 220,523 surgeries.
IPO Structure and Utilization of Funds
The Rs 3,027.26 crore IPO consists of:
✅ Fresh issue: Rs 300 crore
✅ Offer-for-sale (OFS): 6,78,42,284 shares worth Rs 2,727.26 crore
Use of net proceeds:
- Repayment/prepayment of borrowings
- General corporate purposes
- Potential inorganic acquisitions
Anchor Investor Participation
Before its IPO launch, Dr Agarwal’s Health Care raised Rs 875.5 crore via its anchor book, allocating 2.17 crore shares at Rs 402 apiece. Major investors include:
✅ Goldman Sachs
✅ Morgan Stanley
✅ Government of Singapore
✅ Fidelity
✅ HSBC Global
✅ Government Pension Fund Global
Key Financials & Market Sentiment
For the six months ended September 30, 2024, Dr Agarwal’s Health Care reported:
📌 Net Profit: Rs 39.56 crore
📌 Revenue: Rs 837.94 crore
📌 Market Capitalization: Rs 12,698.37 crore
Grey Market Premium (GMP): The latest reports indicate a GMP of Rs 12 per share, suggesting only 3% potential listing gains for investors.
Share Allocation Details
- QIBs (Qualified Institutional Buyers): 50% of the total issue
- Non-institutional investors: 15% of the total issue
- Retail investors: 35% of the total issue
- Employee Reservation: 15,79,399 shares worth Rs 63.49 crore
- Dr Agarwal’s Eye Hospital Shareholders: 11,29,574 shares reserved
Brokerage Firm Recommendations
| Brokerage | Rating | Key Takeaways |
|---|---|---|
| Anand Rathi Research | Subscribe (Long-Term) | Strong market presence, aggressive expansion plans, and a growing brand image make it a solid investment for long-term gains. |
| StoxBox | Avoid | Overvalued compared to listed peers, inconsistent financial performance, and a high OFS component make it a risky bet. |
| Canara Bank Securities | Neutral | Strong positioning in eye care, but valuations remain high. Limited diversification beyond a single specialty. |
| SBI Securities | Subscribe (Long-Term) | Fairly priced compared to peers, with strong revenue and profit growth. Long-term potential is promising. |
| Mehta Equities | Subscribe (Long-Term) | Solid organic growth strategy, expanding network, but limited short-term upside. |
Should You Invest in Dr Agarwal’s Health Care IPO?
- For long-term investors: The company has strong fundamentals, a robust market presence, and plans for aggressive expansion, making it a good investment for long-term gains.
- For short-term traders: The low GMP suggests limited listing gains, so short-term investors might not see immediate high returns.
- For cautious investors: Given the rich valuation and high concentration of OFS, some analysts recommend waiting until after listing to evaluate sustained performance.
IPO Listing Date & Registrar Details
- Registrar: KFin Technologies
- Listing on: NSE & BSE
- Expected Listing Date: February 5, 2025 (Wednesday)
Final Verdict
Dr Agarwal’s Health Care IPO presents an opportunity in the growing eye care industry. While its valuation is on the higher side, its expansion plans and business model make it appealing for long-term investors. However, short-term traders should manage expectations regarding listing gains.
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