Fri Jan 31 11:57:43 IST 2025: ## Dr. Agarwal’s Healthcare IPO Closes with 42% Subscription

**MUMBAI, January 31, 2025** – The initial public offering (IPO) of Dr. Agarwal’s Healthcare Ltd., India’s largest eye care chain by revenue, concluded today after a three-day bidding period. The IPO, backed by Temasek Holdings and TPG, saw a total subscription of 42% by the close of trading, according to data from the Bombay Stock Exchange (BSE).

The IPO offered shares at a price band of ₹382 to ₹402, aiming to raise ₹3,027.26 crore. This included a fresh issue of ₹300 crore and an offer for sale of ₹2,727.26 crore worth of existing shares. The company had already secured over ₹875.5 crore from anchor investors prior to the public offering. Proceeds from the fresh issue will primarily be used for debt repayment, with remaining funds allocated to acquisitions and general corporate purposes.

While Qualified Institutional Buyers (QIBs) portion was oversubscribed, retail investor participation was at 23% by the end of the second day, and non-institutional investors participated at 11%.

Dr. Agarwal’s Healthcare operates 193 facilities across 14 states and 4 union territories in India, and a further 16 in Africa. The company provides a comprehensive range of eye care services, from cataract surgeries to optical product sales. Despite its strong market presence and projected growth in the Indian eye care sector, the IPO’s valuation at the upper price band of ₹402 resulted in a high Price-to-Earnings ratio (133.6x for FY24), causing some analysts to express concerns.

The grey market premium (GMP) fluctuated throughout the offering period, suggesting varying investor sentiment. Although the grey market premium indicated a possible listing price higher than the IPO price, the final success of the IPO will depend on investor allocation and market conditions. Allotment is expected on February 3rd, with refunds and share crediting on February 4th, and listing on the BSE and NSE on February 5th.

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