Wed Jan 29 15:48:05 IST 2025: ## Dr Agarwal’s Health Care IPO Opens, Seeks Rs 3,027 Crore

**Mumbai, January 31, 2025** – Dr Agarwal’s Health Care’s initial public offering (IPO), opened on Wednesday, January 29th, and closed on Friday, January 31st, aiming to raise Rs 3,027 crore. The IPO comprises a fresh issue of Rs 300 crore and an offer-for-sale (OFS) of 6.95 crore equity shares worth Rs 2,727 crore by promoters and investors.

The IPO price band is set at Rs 382-402 per share, with a minimum bid of 35 shares. Allocation is reserved at 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. Share allotment is expected on February 3rd, with listing anticipated on February 5th.

Proceeds will be used to repay borrowings, for general corporate purposes, and for inorganic acquisitions. The IPO commanded a grey market premium (GMP) of Rs 12 as of January 29th, suggesting a potential listing price of Rs 414.

Analyst opinions are divided. While some, like Rajan Shinde of Mehta Equities, recommend subscribing for long-term gains, citing the company’s 25% market share in India’s organized eye care sector and projected market growth, others express concerns. Anand Rathi Research considers the IPO richly priced at the upper band (134x FY24 EPS), and Geojit Financial Services points to the high P/E ratio (133.6 times FY24) compared to peers and the concentration of facilities in three states (Chennai, Maharashtra, and Karnataka, accounting for 62% of total facilities). The significant OFS (approximately 90% of the total issue) also raises concerns for some investors.

Dr Agarwal’s Health Care, with 209 facilities and 737 doctors as of September 2024, served 2.13 million patients and performed 220,523 surgeries in FY24. The company holds a 71.9% stake in its subsidiary, Dr Agarwal’s Eye Hospital. Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors are the lead managers. (Disclaimer: This article does not constitute financial advice.)

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