Thu Jan 30 13:02:15 IST 2025: ## Dr. Agarwal’s Healthcare IPO Receives Tepid Investor Response

**MUMBAI, January 30, 2025** – The initial public offering (IPO) of Dr. Agarwal’s Healthcare has experienced a sluggish start, with subscriptions significantly below expectations as of the second day of bidding. The IPO, aiming to raise ₹3,027.26 crore through a combination of fresh share issuance and an offer for sale, was subscribed only 0.07 times by the close of trading on January 29th. This underperformance spans all investor categories: retail (0.12 times), qualified institutional buyers (QIBs) (0 times), and non-institutional investors (NIIs) (0.06 times).

The IPO, priced between ₹382 and ₹402 per share, requires a minimum investment of ₹14,070 for retail investors. Despite a positive outlook from some analysts who cite the company’s growth strategy and expansion plans as reasons for long-term investment, the high price-to-earnings ratio (P/E) of 133.6x (FY24) at the upper price band has raised concerns.

The grey market premium (GMP) has also fallen, currently standing at ₹5, suggesting an estimated listing price of around ₹407. This indicates a potential gain of only 1.24% per share, further dampening investor enthusiasm. The IPO closes on January 31st, with share allotment expected on February 3rd and a tentative listing date of February 5th on the BSE and NSE.

While some analysts remain optimistic about the company’s long-term prospects, the initial lukewarm response underscores the challenges faced by Dr. Agarwal’s Healthcare in attracting investor interest at its current valuation. Investors are advised to consult with financial advisors before making investment decisions.

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