Dr. Agarwal's Health Care has gained significant attention in the Indian eye care market, offering a broad spectrum of eye care services, including surgeries for cataracts, refractive conditions, and general eye consultations. The company holds an impressive 25% market share in the Indian eye care service chain, as reported by CRISIL MI&A for FY 2024. This article covers everything you need to know about their initial public offering (IPO), which opened on January 29, 2025, and is expected to close on January 31, 2025.

Dr. Agarwal's Health Care IPO Details

The Dr. Agarwal's Health Care IPO comprises a fresh issue of 74.62 lakh shares, raising ₹ 300 crores, along with an offer for sale (OFS) of 678.42 lakh shares, valued at ₹ 2727.25 crores. The share price band for the IPO is set between ₹ 382 and ₹ 402 per equity share, with the lot size being 35 shares. Retail investors are required to invest a minimum of ₹ 14,070, while High-Net-Worth Individuals (HNIs) need to apply for a minimum of 15 lots (525 shares), amounting to ₹ 2,11,050.

The Grey Market Premium (GMP) of the Dr. Agarwal's Health Care IPO is around ₹ 44, indicating an estimated listing price of ₹ 446 based on current demand and financial performance. The listing date is scheduled for February 5, 2025, on both the BSE and NSE.

Subscription Status

As of January 30, 2025, the IPO has been subscribed 0.06 times, reflecting a moderate investor interest in the offering. Investors are eagerly watching the subscription trends, which often indicate future demand and can impact the IPO’s performance post-listing. You can track the live subscription status directly on the BSE website.

Dr. Agarwal's Health Care Financials

The company’s revenue and profit figures have shown steady growth, with revenue from operations for the fiscal year ending September 2024 reported at ₹ 8,379.40 million. In comparison, the company's EBITDA for the same period stood at ₹ 2,284.77 million, while the profit after tax (PAT) was ₹ 395.64 million. These positive figures indicate the company’s strong financial performance and its capacity to expand further.

However, the P/E ratio for the IPO is high at 128.43x (pre-issue) and 152.88x (post-issue), compared to the industry average of 82x. This suggests that the IPO is fully priced, making it a less attractive option for those looking for immediate listing gains.

Dr. Agarwal's Health Care IPO Objectives

The net proceeds from the IPO will primarily be used for repayment of borrowings and general corporate purposes, including potential inorganic acquisitions. This strategic move is aimed at enhancing operational efficiency and expanding the company's reach.

The company also has marquee institutional investors like Temasek Holdings and TPG, who add credibility and trust to the offering. Additionally, Dr. Agarwal, the Chairman of the company, has over 35 years of experience in ophthalmology, further boosting investor confidence in the brand.

IPO Review and Investor Recommendations

Given the high P/E ratio and the current GMP trends, the IPO is priced at a premium. Investors seeking short-term gains may find the listing price already priced in, considering the company’s established market share and steady financial performance. Therefore, it is recommended that investors avoid the IPO for listing gains, although long-term investors may still find value due to the company’s strong market position.