Thu Jan 30 10:52:20 UTC 2025: ## Dr. Agarwal’s Healthcare IPO Sees Moderate Subscription on Day 2

**MUMBAI, Jan 31, 2025** – The initial public offering (IPO) of Dr. Agarwal’s Healthcare Ltd., a leading eye care provider backed by Temasek Holdings and TPG, closed on Wednesday with a subscription rate of around 42%, according to late-day figures from the Bombay Stock Exchange (BSE). While the retail investor segment saw a healthy subscription rate exceeding 20%, the non-institutional investor portion lagged. The Qualified Institutional Buyer (QIB) portion was fully subscribed by the day’s close.

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 valued at ₹2,727.26 crore. Anchor investors had already committed over ₹875.5 crore prior to the public offering. Proceeds from the fresh issue will primarily be used for debt repayment and acquisitions.

Dr. Agarwal’s Healthcare operates 193 facilities, mainly in South India, employing a cost-effective “hub-and-spoke” model and an asset-light strategy (leasing most facilities). The company boasts a significant market share in the Indian eye care sector, with plans for further expansion, particularly in underserved regions. While the company reported strong revenue and EBITDA growth in recent years, analysts express some concerns over the IPO’s valuation, which some consider aggressive compared to peers.

Despite the strong revenue growth (CAGR of 38% over the last two years), the high P/E ratio (128x for FY24 and 200x for FY25E) and focus on a single specialty are areas of concern highlighted by several analysts. The grey market premium (GMP) showed some fluctuation throughout the day but ended around ₹5, indicating a potential listing price slightly above the higher end of the IPO price range. The final allotment is expected on February 3rd, with listings anticipated on February 5th.

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