Dr. Agarwal Healthcare, one of India’s leading eye care service providers, is all set to launch its initial public offering (IPO) in January 2025. This IPO is going to be an important IPO for investors looking to benefit from the growing healthcare sector in India. The company, known for its advanced eye care services under the Dr. Agarwal Eye Institute brand, plans to raise funds through a mix of new equity shares and an offer for sale (OFS).
In this article, we will discuss the details of Dr. Agarwal Healthcare’s IPO in depth, including its subscription dates, price band, financial performance, strengths, risks, and industry outlook. Whether you are an experienced investor or a novice, this guide will help you understand everything you need to know about this IPO and make an informed decision.
Key Details of Dr. Agarwal’s Healthcare IPO
The IPO will open for subscription on January 29, 2025, and close on January 31, 2025. The price band for the shares has been fixed between ₹382 and ₹402 per share. The offering comprises issuance of fresh shares worth ₹300 crore and an offer for sale (OFS) of existing shares worth ₹2,727.26 crore. These shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on February 5, 2025. The IPO is managed by leading financial institutions including Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors, with Kfin Technologies acting as the registrar.
Dr. Agarwal’s Healthcare Objectives of the IPO
The primary objective of Dr. Agarwal’s Healthcare IPO is to raise funds for debt repayment, general corporate purposes and potential acquisitions. The fresh issue of shares worth ₹300 crore will be used to repay existing debts and support the company’s operating expenses. Additionally, the company plans to explore acquisition opportunities in the eye care segment to further strengthen its market position. So let us now know in detail about the profile of Dr. Agarwal’s Healthcare Company.
Dr. Agarwal’s Healthcare Company Profile
Dr. Agarwal’s Healthcare is a pioneer in advanced eye care services, offering a wide range of treatments, including routine eye check-ups, cataract surgeries, LASIK procedures, retina treatments, and corneal transplants. As of September 2024, the company operates 209 facilities across India and Africa, making it the largest eye care chain in India. In FY24, the company served 2.13 million patients and performed over 220,000 surgeries. The company also emphasizes research and development in ophthalmology, ensuring it stays at the forefront of eye care innovation.
Dr. Agarwal’s Healthcare Financial Performance
Dr. Agarwal’s Healthcare is a leader in advanced eye care services, offering a wide range of treatments including regular eye checkups, cataract surgery, LASIK procedures, retinal treatments, and corneal transplants. As of September 2024, the company operates 209 facilities in India and Africa, making it the largest eye care chain in India. In FY24, the company served 2.13 million patients and performed over 220,000 surgeries. Apart from this, the company also emphasizes research and development in ophthalmology, ensuring that it remains at the forefront of eye care innovation. Now let’s talk about Dr. Agarwal’s Healthcare financial performance.
Dr. Agarwal’s Healthcare Industry Outlook
The Indian healthcare delivery market is projected to grow at a compound annual growth rate (CAGR) of 9-11%, reaching ₹9.1-9.3 trillion by FY28. The eye care segment, valued at ₹378 billion in FY24, is expected to grow at a CAGR of 12-14%, reaching ₹550-650 billion by FY28. This growth is going to be driven by factors such as rising per capita income, increasing health insurance penetration, and rising awareness about eye health. And because of this, we can expect Dr. Agarwal’s Healthcare to be well-positioned to benefit from this growth due to its strong market presence and comprehensive service offerings.
Strengths of Dr. Agarwal’s Healthcare
Dr Agarwal’s Healthcare has several strengths that make it an attractive investment opportunity. The best part about the company is that it is India’s largest eye care chain, with a significant market share and a wide range of services. Its scalable hub-and-spoke model ensures efficient operations, with central hubs handling advanced treatments and spoke centers focusing on routine care. This model allows the company to expand its reach while maintaining high-quality service standards. Now let’s talk about the risks associated with investing in Dr Agarwal’s Healthcare IPO that you should consider.
Dr. Agarwal’s Healthcare Risks to Consider
Although Dr Agarwal’s Healthcare has a strong market position, investors should consider certain risks. The company’s operations are largely concentrated in southern India, particularly in Tamil Nadu, Karnataka, Telangana, and Andhra Pradesh. This regional concentration could pose challenges if there are economic or regulatory changes in these regions. Also, the company relies heavily on skilled medical professionals and retaining them could be a challenge. The high offer for sale (OFS) component of the IPO could also limit the funds available for the company’s growth. There may be other factors that investors should consider before investing.
Dr. Agarwal’s Healthcare Grey Market Premium (GMP) Trends
The grey market premium (GMP) of Dr Agarwal Healthcare IPO is at ₹13 today. This means that the shares of this IPO are trading at a premium of ₹13 in the grey market. The significance of GMP indicates how much demand and enthusiasm there is for the IPO in the market. If the GMP is positive, it can also be an indication of potential listing gains.
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The main purpose of GMP is to show how investors are sentiment towards the IPO. However, it is a completely unofficial figure and should not be made the basis for investment. It is based only on speculation in the market and there is no guarantee of its accuracy. Investors can only see it as a reference and should consult their financial advisor before making an investment decision.
Dr. Agarwal’s Healthcare Should You Invest?
Dr. Agarwal’s Healthcare IPO presents a unique opportunity to invest in a leading player in the growing eye care segment. The company’s strong market position, comprehensive services, and scalable business model make it an attractive investment option. However, investors should carefully evaluate the risks, including regional concentration and high OFS. If you’re looking to invest in a growing sector with long-term potential, this IPO could be worth considering.
Conclusion
Dr. Agarwal’s Healthcare IPO is a significant event in the Indian healthcare sector. With a strong market presence, comprehensive services, and a scalable business model, the company is well-positioned for growth. However, investors should carefully evaluate the risks, including regional concentration and high OFS. If you’re looking to invest in a growing sector with long-term potential, this IPO could be worth considering.
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Disclaimer: The information provided in this article is for educational purposes only. Investors are advised to conduct their research or consult a financial advisor before making any investment decisions.
FAQ:
When will Dr. Agarwal’s Healthcare IPO open and close?
The IPO opens on January 29, 2025, and closes on January 31, 2025.
What is the price band of Dr. Agarwal’s Healthcare IPO?
The price band of the IPO has been fixed between ₹382 to ₹402 per share.
What is the minimum investment one can make in Dr. Agarwal’s Healthcare IPO?
Minimum investment needs to be made for one lot of 35 shares, which costs ₹14,070 (at higher price band).
These shares will be listed on BSE and NSE on February 5, 2025.
What was Dr. Agarwal’s Healthcare’s FY24 revenue and profit?
The company’s revenue in FY24 was ₹1,332.15 crore and net profit was ₹95.05 crore.
