Thu Jan 30 11:20:33 UTC 2025: ## Dr Agarwal’s Healthcare IPO Receives Tepid Response on Day Two

**MUMBAI, January 30, 2025** – The initial public offering (IPO) of Dr Agarwal’s Healthcare continues to underperform expectations, with muted investor interest persisting into its second day. The IPO, which opened on Wednesday, January 29th, was only 38% subscribed by 1:45 PM Thursday, significantly below the anticipated demand.

The company is offering shares at a price band of Rs 382-402, aiming to raise Rs 3,027.26 crore. While the Qualified Institutional Bidders (QIBs) portion is 95% subscribed, retail investor subscription stands at a mere 20%, and Non-Institutional Investors (NIIs) at 9%. Employee and shareholder portions saw 15% and 22% subscription respectively.

The lukewarm response has drastically impacted the grey market premium (GMP), plummeting from Rs 160 before the IPO to just Rs 5 per share. This suggests a potentially flat listing upon its anticipated debut on February 4th.

Despite concerns about high valuations (a P/E ratio of 133.6 times) and a significant offer-for-sale (OFS) component, some brokerage firms maintain a positive long-term outlook. They cite the growing demand for eye care services, the company’s asset-light model, experienced management, and growth potential as key positives. However, stiff competition remains a significant challenge.

Dr Agarwal’s Healthcare, established in 2010, operates a “hub-and-spoke” model of eye care facilities, currently boasting 193 facilities across India. The company pre-IPO raised Rs 875.5 crore through an anchor book, reporting a net profit of Rs 39.56 crore on revenue of Rs 837.94 crore for the six months ending September 30, 2024. The IPO is being managed by Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, and Motilal Oswal Investment Advisors. The shares will be listed on both the BSE and NSE.

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