Fri Jan 24 19:07:29 UTC 2025: ## Dr. Agarwal’s Healthcare IPO: Overpriced but Potentially Promising, Say Analysts

**MUMBAI, January 25, 2025** – Dr. Agarwal’s Healthcare Limited, India’s largest private eye care provider, is set to launch its Initial Public Offering (IPO) with a price band of ₹382-₹402 per share. The IPO, generating significant buzz, aims to raise capital for debt repayment and acquisitions.

The company, founded in 2010, boasts 193 facilities across India and served over 1.15 million patients in the six months ending September 2024. Its comprehensive eye care services range from cataract surgeries to corneal transplants. While the company showcases strong growth in revenue and profitability, analysts point to a dip in Return on Equity (ROE) and a high P/E ratio of 130.4x compared to industry averages (82x) and competitors like Aster DM Healthcare (136x) and Narayana Health (33x), raising concerns about overvaluation.

The grey market premium (GMP) currently stands at ₹80 per share, suggesting strong investor interest. However, experts caution retail investors seeking quick returns to approach the IPO with caution due to the high valuation and inherent risks associated with IPO investments.

“While Dr. Agarwal’s Healthcare holds significant potential given its market position and growth prospects, the IPO price appears overpriced,” commented Suresh KP, a Certified Investment Advisor and Certified Research Analyst. “Investors should consider a long-term perspective and carefully weigh the risks before investing. Consult with a financial advisor before making any investment decisions,” he added.

Investors can apply for the IPO through ASBA via their bank or broker, with UPI options available for retail investors. This analysis is for informational purposes only and does not constitute financial advice.

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