Wed Jan 29 07:50:00 UTC 2025: ## Dr Agarwal’s Healthcare IPO Receives Tepid Response on Day One
**Mumbai, January 30, 2025** – The initial public offering (IPO) of Dr Agarwal’s Healthcare Ltd, a leading eye care provider backed by Temasek Holdings and TPG, saw a sluggish start on its first day of bidding. The ₹3,027.26 crore IPO, priced between ₹382 and ₹402 per share, garnered only 7% subscription on Wednesday, January 29th.
The issue, which closes on January 31st, offered 53,526,172 shares, but received bids for only 3,808,980 shares. While the Retail Individual Investors (RIIs) portion saw an 11% subscription, the non-institutional investor category lagged behind with only 6% subscription.
Zee Business Managing Editor Anil Singhvi cautioned investors, suggesting that only those with a high-risk tolerance should consider subscribing. His concerns stem from the company’s pre-IPO fundraising of ₹875.5 crore from anchor investors, and the allocation of fresh issue proceeds: ₹195 crore for debt repayment, with the remainder earmarked for general corporate purposes and potential acquisitions.
Dr Agarwal’s Healthcare, with 193 facilities across South and Western India, offers a range of eye care services including surgeries, consultations, diagnostics, and optical products.
The IPO comprises a fresh issue of ₹300 crore and an offer for sale (OFS) of ₹2,727.26 crore. Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors are the book-running lead managers. The lukewarm response raises questions about investor sentiment towards the healthcare sector and the company’s valuation.
First Piper 