Fri Jan 31 10:12:40 UTC 2025: **Dr. Agarwal’s Healthcare IPO Oversubscribed on Final Day**

MUMBAI, January 31 – The initial public offering (IPO) of Dr. Agarwal’s Healthcare Ltd., India’s largest eye care service chain by revenue, concluded today, significantly oversubscribed despite fluctuating subscription rates throughout the day. The IPO, which offered shares at ₹382-402 per share, aimed to raise ₹3,027.26 crore.

While initial reports showed slower-than-expected subscription rates, with only 10% subscribed by mid-morning on the final day, the IPO ultimately closed with 85% subscription at 12:15 IST. This follows a 42% subscription rate over the first two days.

Qualified Institutional Buyers (QIBs) showed the strongest interest, with their portion oversubscribed by a factor of more than four times. However, retail investor participation remained relatively modest, around 30% at the close.

The company, backed by Temasek Holdings and TPG, has already secured over ₹875.5 crore from anchor investors. The proceeds from the IPO will be used primarily for debt repayment (₹195 crore), inorganic acquisitions, and general corporate purposes.

Dr. Agarwal’s Healthcare operates 193 facilities across India, predominantly in South India. The company boasts a strong financial performance, with a 31% revenue increase to ₹1,332 crore in FY24 and an improved EBITDA margin of 27.2%. However, the IPO’s valuation, at a projected P/E ratio of 133.6x (FY24), is considered expensive compared to peers.

Despite the high valuation, some analysts recommend a long-term investment perspective due to the company’s significant market share (approximately 25% in India) and growth potential within the expanding Indian eye care market. The grey market premium (GMP) at close was ₹1.5, suggesting an estimated listing price of ₹403.5. The final allotment is expected on February 3rd, with listing on the BSE and NSE on February 5th.

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