Dr. Agarwal’s Health Care IPO: Key Information and Market Insights

Dr. Agarwal’s Health Care has launched its Initial Public Offering (IPO) to raise ₹ 3,027.26 Crores, consisting of a fresh issue of ₹ 300 Crores and an Offer for Sale (OFS) of ₹ 2,727.25 Crores. The IPO is scheduled to open for subscription from January 29, 2025 to January 31, 2025, with the allotment date set for February 4, 2025, and the shares expected to list on the BSE & NSE by February 5, 2025.

IPO Details

• Price Band: ₹ 382 to ₹ 402 per equity share
• Market Capitalization at Upper Price Band: ₹ 12,698.36 Crores
• Lot Size: 35 shares
• Retail Minimum Investment: ₹ 14,070 (for 35 shares)
• HNI Minimum Investment: ₹ 2,11,050 (for 525 shares)

Financial Overview and Market Performance

• The Grey Market Premium (GMP) for Dr. Agarwal’s Health Care IPO is currently ₹ 44, suggesting potential listing gains of approximately 10.94%.
• As per the CRISIL MI&A Report, Dr. Agarwal’s Health Care holds a 25% market share in India’s eye care service chain market as of FY 2024.

IPO Objectives

The proceeds from the IPO will be utilized for:

1. Repayment of borrowings (₹ 1,950 Million)
2. General corporate purposes and potential acquisitions

Company Performance and Metrics

• Revenue (FY 2024): ₹ 13,764.49 Million
• Profit After Tax (FY 2024): ₹ 950.51 Million
• Post-issue P/E Ratio: 152.88x (industry P/E: 82x)
• ROCE (FY 2024): 14.61%
• EPS (FY 24): Pre-issue: ₹ 3.13, Post-issue: ₹ 2.63

Given the high P/E ratio compared to the industry average, the IPO appears fully priced. The company’s financial growth and market position reflect a steady performance, although listing gains could be limited.

Dr. Agarwal’s Health Care IPO Review

While the Grey Market Premium (GMP) suggests potential gains, the high valuation and premium pricing may not guarantee substantial returns. Given its fully priced IPO, investors may want to avoid the IPO for listing gains but can consider it for long-term investments, especially considering the company’s market leadership and growth trajectory.

Anchor Investors and Subscription Status

Dr. Agarwal’s Health Care has already raised ₹ 875.51 Crores from Anchor Investors at the upper price band of ₹ 402 per share. The IPO has been subscribed 0.04 times as of January 29, 2025, with more subscription expected as the deadline approaches.

IPO Allotment Check:

• The allotment status can be checked online by visiting the Registrar's website after February 4, 2025.

This IPO provides an opportunity to invest in a leading eye care services provider, but prospective investors should evaluate their goals and the high valuation before committing.