The year 2025 kicks off with an exciting development for investors—Dr Agarwal Healthcare Limited is set to launch its much-anticipated Initial Public Offering (IPO). With a total issue size of ₹3,027.26 crore, this IPO has generated significant interest in the market. From price bands and grey market premiums (GMP) to subscription dates and business fundamentals, here’s a detailed look at everything you need to know.
What is Dr Agarwal Healthcare IPO?
Dr Agarwal Healthcare Limited, a leading eye care services provider, aims to raise ₹3,027.26 crore through its IPO. The issue consists of a fresh issuance of ₹300 crore and an offer-for-sale (OFS) worth ₹2,727.26 crore. The IPO will remain open for subscription from January 29 to January 31, 2025, and the shares will debut on NSE and BSE on February 5, 2025.
Dr Agarwal Healthcare IPO Price Band and Lot Size
- Price Band: ₹382–₹402 per share
- Lot Size: 35 shares per lot
- Minimum Investment: ₹14,070 (1 lot)
This price band ensures accessibility for retail investors while providing an opportunity to invest in a rapidly growing healthcare segment.
Grey Market Premium (GMP)
The current GMP for Dr Agarwal Healthcare IPO is ₹60, indicating strong demand in the unofficial market. Based on the cap price of ₹402, the estimated listing price could reach ₹462 per share, providing a potential upside of 14.9%.
| Price Band (₹) | GMP (₹) | Estimated Listing Price (₹) | Listing Premium (%) |
|---|---|---|---|
| ₹382–₹402 | ₹60 | ₹462 | 14.9% |
Key Dates for Dr Agarwal Healthcare IPO
| Event | Date |
|---|---|
| Subscription Period | January 29–31, 2025 |
| Allotment Finalization | February 3, 2025 |
| Refund Initiation | February 4, 2025 |
| Listing Date | February 5, 2025 |
Dr Agarwal Healthcare: Business Overview
Established in 2010, Dr Agarwal Healthcare Limited provides comprehensive eye care services, including consultations, diagnostics, surgeries, and optical products. With a network of 209 facilities across India, the company operates on a hub-and-spoke model that enhances scalability and efficiency.
Core Offerings:
- Surgical Services – Cataract, refractive surgeries, corneal transplants, and glaucoma treatments.
- Non-Surgical Services – Retinal laser therapy, dry eye treatment, and diagnostics.
- Products – Eyeglasses, contact lenses, and pharmaceutical products.
Financial Performance
Dr Agarwal Healthcare has demonstrated impressive financial growth over the past few years.
| Particulars (₹ Crore) | FY22 | FY23 | FY24 | H1 FY25 |
|---|---|---|---|---|
| Revenue | 696 | 1,018 | 1,332 | 820 |
| Profit After Tax (PAT) | 43.2 | 103.2 | 95 | 39.5 |
- Return on Equity (ROE): 9.33%
- PAT Margin: 6.9%
- Price-to-Book Ratio: 7.96
Strengths of Dr Agarwal Healthcare IPO
- Dominant Market Position: The company holds a 25% share in the organized eye care market in India.
- Scalable Model: Its asset-light, hub-and-spoke model allows for quick expansion with minimal upfront investment.
- Comprehensive Offerings: From consultations to surgeries and optical products, Dr Agarwal Healthcare caters to diverse eye care needs.
- Strong Growth Trajectory: Consistent revenue and profit growth over the past few years highlight the company’s operational efficiency.
Weaknesses and Risks
- Regulatory Challenges: Operating in the healthcare sector requires strict compliance with safety and health regulations.
- Legal Risks: Potential liabilities from malpractice claims could impact financial stability.
- Competition: The company faces stiff competition from public and private hospitals, as well as specialized clinics.
Objectives of the IPO
Proceeds from the IPO will primarily be used for:
- Debt Repayment: ₹195 crore will be allocated to reduce the company’s debt burden.
- Corporate Purposes: A portion of funds will support general corporate activities.
- Acquisitions: The company plans to explore inorganic growth opportunities.
Industry Outlook
India’s eye care industry is poised for rapid growth, driven by increasing awareness, rising disposable income, and an aging population. According to a CRISIL report, the organized eye care market is expected to grow at a CAGR of 9.5% between FY24 and FY30. Dr Agarwal Healthcare’s leadership position positions it well to capitalize on this growth.
Should You Subscribe to Dr Agarwal Healthcare IPO?
Dr Agarwal Healthcare offers a compelling investment opportunity, especially for those looking to diversify into the healthcare sector. Its strong market presence, scalable model, and robust financials make it a promising choice. However, potential investors should consider the risks associated with regulatory compliance and competition before subscribing.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are encouraged to consult their financial advisors before making investment decisions.