Thu Jan 30 10:02:03 UTC 2025: ## Dr. Agarwal’s Healthcare IPO Sees Strong QIB Interest, Moderate Overall Subscription on Day 2

**MUMBAI, January 31, 2025** – The initial public offering (IPO) of Dr. Agarwal’s Healthcare Ltd., a leading eye care provider backed by Temasek Holdings and TPG, concluded today after a two-day bidding period. While the overall subscription rate hovered around 38% by the end of the day, the offering saw strong interest from Qualified Institutional Buyers (QIBs), who subscribed 95% of their allocated portion.

The ₹3,027.26 crore IPO, priced between ₹382 and ₹402 per share, comprised a fresh issue of ₹300 crore and an offer for sale (OFS) of existing shares. The company raised over ₹875.5 crore from anchor investors prior to the public offering. Proceeds from the fresh issue will primarily be used for debt repayment and potential acquisitions.

Retail investor participation was moderate, reaching approximately 20% subscription. Non-institutional investors showed less enthusiasm, with only around 9% subscription. Employee and shareholder portions were subscribed at 15% and 22% respectively.

Dr. Agarwal’s Healthcare operates a network of 193 facilities primarily in South India, offering a wide range of eye care services. The company reported strong revenue and EBITDA growth in recent years, but also boasts a high Price-to-Earnings (P/E) ratio compared to its peers, leading to varied analyst recommendations. Some analysts expressed bullishness on the company’s long-term growth potential while cautioning investors about the elevated valuation.

The company’s cost-efficient model, focusing on outpatient services, and its hub-and-spoke system contribute to its profitability. Despite its market share of approximately 1% in India’s growing eye care surgery market, Dr. Agarwal’s Healthcare aims to expand its presence in underserved regions.

The allotment of shares is expected on February 3rd, with refunds and crediting of shares to demat accounts following on February 4th. The company is expected to list on the BSE and NSE on February 5th. The grey market premium (GMP) indicated a potential listing price slightly above the upper end of the IPO price band. However, analysts advise investors to conduct thorough due diligence before making any investment decisions.

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