Dr. Agarwal's Health Care IPO Subscribed 1.55x, GMP Soars; Check Allotment & Listing Dates

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Dr. Agarwal's Health Care IPO Subscribed 1.55x, GMP Soars; Check Allotment & Listing Dates

Team Finance Saathi

03/Feb/2025

What's covered under the Article:

Dr. Agarwal's Health Care IPO opens on January 29, 2025, with a ₹ 382-402 price range and a ₹ 3,027.26 Crore issue.
Grey Market Premium (GMP) shows potential listing gains of 10.94%.
Financial performance indicates steady growth, but the IPO is fully priced.

Dr. Agarwal's Health Care offers a comprehensive range of eye care services, including cataract surgeries, refractive surgeries, consultations, diagnoses, and the sale of opticals, contact lenses, and eye care products. The company holds a 25% market share in India's eye care service market, as reported in the CRISIL MI&A Report for FY 2024. The company is launching a Book Built Issue IPO worth ₹ 3,027.26 Crores, including a fresh issue of ₹ 300.00 Crores and an Offer for Sale of ₹ 2,727.25 Crores, with 74.62 Lakh shares.

The IPO is priced between ₹ 382-402 per share with a market capitalization of ₹ 12,698.36 Crores at the upper price band. Retail investors are required to invest a minimum of ₹ 14,070 for 35 shares, while High-Net-Worth Individuals (HNIs) must invest ₹ 2,11,050 for 525 shares.

The financial performance shows consistent growth in revenue, with ₹ 13,764.49 Million in FY 2024 and ₹ 395.64 Million in Profit After Tax. However, the P/E ratio pre-issue is 128.43x and post-issue 152.88x, indicating that the IPO is fully priced compared to the industry average of 82x.

The Grey Market Premium (GMP) of ₹ 44 suggests potential listing gains of 10.94%. However, considering the high valuation and the fully priced IPO, we recommend investors to avoid the Dr. Agarwal's Health Care IPO if seeking listing gains.

The objectives for the IPO proceeds include repayment of borrowings and general corporate purposes. With a leadership team led by Dr. Amar Agarwal, who has 35 years of experience in the eye care industry, the company has a strong foundation, but the current valuation may limit substantial short-term gains.

The Upcoming IPOs in this week and coming weeks are Chamunda Electricals, Ken Enterprises, Amwill Healthcare, Readymix Construction, Eleganz Interiors.

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Dr. Agarwal's Health Care IPO Subscribed 1.55x, GMP Soars; Check Allotment & Listing Dates

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