The Indian IPO market has been bustling with activity, and the upcoming IPO of Dr. Agarwal Healthcare Ltd is generating significant attention. Scheduled to launch on January 29, 2025, this IPO is a much-awaited event for investors seeking opportunities in the healthcare sector.
With a strong presence in the eye care industry and ambitious expansion plans, Dr. Agarwal Healthcare’s public offering is worth exploring.
Let’s explore the details of the IPO, including its price band, key dates, Grey Market Premium (GMP), and whether it’s a good investment choice.
About Dr. Agarwal Healthcare
Dr. Agarwal Healthcare is a leading provider of eye care services in India. With its headquarters in Chennai, the company operates a robust network of clinics, specialty eye hospitals, and optical centers across the country.
It offers services ranging from cataract surgeries, LASIK treatments, and retinal care to advanced eye surgeries and general eye care.
Established over six decades ago, the company has positioned itself as a trusted name in ophthalmology, serving millions of patients annually. It has also expanded its reach internationally, catering to patients across Africa and Southeast Asia.
Backed by reputed investors such as TPG Growth and Temasek, the company has been on a consistent growth trajectory, supported by its strong focus on technology, patient care, and clinical expertise.
Dr. Agarwal Healthcare IPO Details
Here are the key details of the IPO:
| Open date | January 29, 2025 |
| Closed date | January 31, 2025 |
| Price band | ₹382 – ₹402 per share |
| Face Value | ₹10 per equity share |
| Lot size | 35 Share |
| Min. Investment | ₹14,070 (at the upper price band) |
| Issue size | ₹3,027.26 crore |
| Fresh Issue | ₹300 crore |
| OFS | ₹2,727.26 crore |
| Listing date | February 5, 2025 |
| Listing exchange | NSE and BSE |
The IPO aims to raise ₹3,027.26 crore, with a significant portion coming from the Offer for Sale (OFS). The fresh issue of ₹300 crore will be used for debt reduction, funding expansions, and general corporate purposes.
Read also: Denta Water IPO GMP Premium Up 56%, Subscribed 2x;
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Dr. Agarwal Healthcare IPO is currently trending at ₹60 (as of January 24, 2025).
This indicates that the shares are expected to list at an approximate price of ₹462 per share (upper price band + GMP). While GMP is not a guaranteed indicator of listing performance, it shows positive sentiment among retail investors ahead of the IPO.
Strengths of Dr. Agarwal Healthcare
Risks and Challenges
1. High Competition:
The healthcare sector, particularly eye care, is highly competitive, with established players like L.V. Prasad Eye Institute, Maxivision, and Apollo’s eye care division.
2. Dependency on Key Geographies:
A significant portion of the company’s revenue comes from select regions. Any disruption in these markets could impact growth.
3. Regulatory Risks:
The healthcare sector is heavily regulated, and changes in government policies or compliance requirements can pose challenges.
4. Valuation Concerns:
Some analysts believe the IPO’s valuation is on the higher side, which might limit upside potential for investors.
Financial Performance
Here’s a snapshot of Dr. Agarwal Healthcare’s financial performance over the last three years:
| Financial Year | Revenue (₹ Crore) | Profit After Tax (₹ Crore) | EBITDA Margin |
|---|---|---|---|
| FY2025 | ₹820.06cr | ₹39.56 cr | — |
| FY2024 | ₹1,332.15cr | ₹95.05 cr | 27.02% |
| FY2023 | ₹1,017.98cr | ₹103.23 cr | 27.99% |
| FY2022 | ₹696.08 cr | ₹43.16 cr | — |
The company has shown consistent growth in revenue and profitability, supported by rising patient volumes and efficient cost management.
IPO Objectives
The company plans to utilize the funds raised through the IPO as follows:
- Debt Reduction:
A part of the proceeds from the fresh issue will be used to repay or prepay certain borrowings. - Expansion of Operations:
Dr. Agarwal Healthcare plans to open new hospitals and clinics in underserved regions. - Investment in Technology:
The company aims to upgrade its technological capabilities, including robotic surgeries and AI-powered diagnostic tools. - General Corporate Purposes:
Remaining funds will be used for day-to-day business activities and enhancing operational efficiency.
Should You Invest?
Investing in an IPO requires careful consideration of several factors. Here’s a breakdown of the pros and cons of investing in Dr. Agarwal Healthcare IPO:
Reasons to Consider Investing:
- Strong Brand Name:
The company’s established presence and reputation in the eye care industry make it a promising investment. - Growth Potential:
The healthcare sector, especially eye care, is growing rapidly in India due to increasing awareness and rising healthcare needs. - Backed by Strong Investors:
The presence of TPG Growth and Temasek adds credibility to the company’s financial stability and growth plans. - Positive GMP:
The current GMP of ₹60 indicates a positive listing expectation.
Reasons to Be Cautious:
- High Valuation:
The IPO is priced at the upper band of ₹402, which some analysts consider expensive compared to peers. - Regulatory Risks:
Changes in healthcare regulations could impact the company’s operations. - Market Volatility:
Global and domestic economic uncertainties could impact investor sentiment and listing performance.
Key Dates to Remember
| Event | Date |
|---|---|
| IPO Opening Date | January 29, 2025 |
| IPO Closing Date | January 31, 2025 |
| Allotment Date | February 3, 2025 |
| Refund Initiation Date | February 4, 2025 |
| Credit of Shares | February 4, 2025 |
| Listing Date | February 5, 2025 |
How to Apply for the IPO
Investors can apply for the IPO through both online and offline modes:
- Online: Use platforms like Zerodha, Groww, or your bank’s trading app to apply via UPI.
- Offline: Submit a physical IPO application form through your broker or bank.
Ensure you check the allotment status after the IPO closes to confirm whether you have been allotted shares.
Check IPO Allotment Status
If you’ve applied for the Denta Water IPO, here’s how you can check the allotment status:
1. Through the Registrar’s Website:
- – Visit the official registrar website (e.g., Link 1 or KFin Technologies).
- – Enter your PAN, application number, or DP/Client ID.
- – Check your allotment status.
2. On Stock Exchange Websites:
Conclusion
The Dr. Agarwal Healthcare IPO presents a unique opportunity to invest in a market leader within the healthcare sector. While the company’s growth potential and strong financials make it an attractive prospect, investors should carefully evaluate the risks, particularly the high valuation and sector-specific challenges.
If you’re a long-term investor looking to gain exposure to the healthcare sector, this IPO might be a good fit. However, it’s essential to review the company’s red herring prospectus (RHP) and consult with your financial advisor before making any investment decision.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial advice. Please conduct your own research or consult a professional before investing.
