Dr. Agarwal's Healthcare IPO: Key Details, Benefits, and How to Apply
Dr Agarwal's Healthcare opens for subscription on 29 January. The company is offering a gamut of eye care services and has about 25% market share in India. The proceeds from the issue will be utilized for repayment of debt and acquisitions. The IPO price band has been set at ₹382 and ₹402.
![Dr. Agarwal's Healthcare IPO: Key Details, Benefits, and How to Apply](https://assets.ipoji.com/blog/media/2025/01/Dr-Agrawal-s-IPO-details--date--gmp--lot-size.jpg)
Dr Agarwal's Healthcare, a premier name in India's eye care sector, will open its highly awaited Initial Public Offering (IPO) on Wednesday, 29 January. The company has been supported by the leading investors TPG and Temasek Holdings. A wide range of eye care services have been provided through cataract and refractive surgeries, consultations, non-surgical treatments, and optical products. Let us see the details of this IPO.
About Dr Agarwal's Healthcare
- Integrated Services: The group offers consultations, diagnoses, surgical and non-surgical treatments, eye care pharmaceuticals, and optical products.
- Market Leadership: The company has a market share of about 25% in the Indian eye care services market (CRISIL MI&A Report, FY 2024), whereas stand-alone hospitals can be portrayed as small players.
- Expanding Network: As of September 30, 2024, Dr Agarwal's Healthcare operated 209 facilities, comprising 165 in India and 15 internationally, with 9 in Africa.
India's Eye Care Industry: An Emerging Opportunity
The Indian eye care services market, at ₹37,800 crore in FY24, is likely to grow by 12-14% per annum, which will reach ₹55,000-₹65,000 crore by FY28. It speaks well of the future prospects of the industry's stakeholders.
🏥Dr. Agarwal's Health Care Limited IPO Details
🗓️Date: 29 - 31 Jan,2025
🏷️Price Band: ₹382- ₹402
📦Market Lot: 35 Shares
💰Application Amount: ₹14,070
📏Size: ₹3,027 Cr Approx
👦Retail Portion:35%
📃 Retail Form: 7,25,960
📄HNI Small Form: 6,914
📄HNI Big Form: 13,828
🏷️Face Value: ₹1
➕Shareholders Quota: Yes✅, Record Date 23rd Jan
Dr Agarwals Healthcare IPO is a book-built issue of Rs 3,027.26 crores. The issue is a combination of a fresh issue of 0.75 crore shares aggregating to Rs 300.00 crores and an offer for sale of 6.78 crore shares aggregating to Rs 2,727.26 crores.
The IPO of Dr Agarwals Healthcare opens for subscription on January 29, 2025, and closes on January 31, 2025. The allotment for the Dr Agarwals Healthcare IPO is expected to be finalized on February 3, 2025, being a Monday. Dr Agarwals Healthcare IPO would be listed on BSE, NSE with the tentative date of listing being Wednesday, February 5, 2025.
The IPO price band of Dr Agarwals Healthcare has been given at ₹382 to ₹402 per share. The minimum lot size for application is 35. The minimum amount of retail investors is ₹14,070. The minimum lot size investment on sNII is 15 lots that comprises 525 shares which is ₹2,11,050, and on bNII is 72 lots that comprises 2,520 shares which is ₹10,13,040.
Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers of the Dr Agarwals Healthcare IPO, and the registrar for the issue is Kfin Technologies Limited.
Reservation:
50% for QIB
15% for NII
35% for Retail
Employee Reservation: 1,579,399 equity shares
Shareholder Reservation: 1,129,574 equity shares
Industry Comparison of P/E ratios with competitors
The P/E Ratio of some major competitors is:
- Apollo Hospitals Enterprise: 107.11
- Max Healthcare Institute:95.88
- Fortis Healthcare: 82.11
- Global Health:57.49
- Narayana Hrudayalaya : 33.14
- Krishna Institute of Medical Sciences:79.79
- Aster DM Healthcare: 136.07
- Rainbow Children's Medicare:67.90
IPO Proportionate Utilization from the Proceed
The Proceed amount of the Fresh Issue has to be used accordingly:
- For Repayment/Pre-payment Redemption of debts/obligation:₹195 crores
- Inorganic Acquisitions: Unrecorded
- General Corporate Objectives: Balance amount
Lead Managers and Registrar
Book Running Lead Managers: Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors
Registrar: Kfin Technologies Limited
Why Invest in Dr Agarwal's Healthcare IPO
- Market Leadership: The company's 25% market share in the Indian eye care sector underpins its strong market position.
- Growth Potential: India's eye care market is expected to grow at a CAGR of 12-14% through FY28.
- Expansive Network: A strong presence in India and other countries.
- Operational Excellence: Demonstrated a history of excellent patient care.
Dr Agarwal's Healthcare IPO: a good investment opportunity in an emerging sector of the Indian market. The IPO boasts strong growth plans and market leadership. Therefore, huge interest is garnered among retail as well as institutional investors. Perform your due research and consult your financial advisor before investing.
Tune in to IPO Ji for all the latest updates about this and other IPOs.
FAQs: Dr. Agarwal’s Healthcare IPO
1. What is the date for Dr. Agarwal’s Healthcare IPO?
The IPO opens for subscription on January 29, 2025, and closes on January 31, 2025.
2. What is the price band for the IPO?
The price band is set between ₹382 and ₹402 per equity share.
3. What is the lot size for the IPO?
Investors can bid for a minimum of 35 shares and in multiples thereof.
4. What is the total issue size of the IPO?
The IPO comprises a Fresh Issue of ₹300 crore and an Offer for Sale (OFS) of 6.78 crore equity shares, aggregating to ₹2,727.3 crore.
5. How will the company use the proceeds from the IPO?
The proceeds will be utilized for:
- Repayment of debts (₹195 crore).
- Funding inorganic acquisitions.
- General corporate purposes.
6. Who are the stakeholders selling shares in the OFS?
Major stakeholders include:
- Arvon Investments Pte.
- Claymore Investments Mauritius Pte (Temasek Holdings).
- Hyperion Investments Pte (TPG).
7. How is the IPO structured in terms of reservations?
The IPO is structured as follows:
- 50% for Qualified Institutional Buyers (QIB).
- 15% for Non-Institutional Investors (NII).
- 35% for Retail Investors.
- Employee Reservation: 1,579,399 shares.
- Shareholder Reservation: 1,129,574 shares.
8. How can I apply for the IPO?
You can apply through the ASBA (Applications Supported by Blocked Amount) facility provided by banks or via UPI through trading platforms like Zerodha, Upstox, or Groww.
9. When will the allotment of shares be finalized?
The allotment will be finalized on February 3, 2025.
10. What is the listing date for the IPO?
The shares are expected to be listed on the stock exchanges (BSE and NSE) on February 5, 2025.
11. What is the current market share of Dr. Agarwal’s Healthcare in India?
The company holds around 25% market share in the Indian eye care services sector as of FY 2024 (CRISIL MI&A Report).
12. How does Dr. Agarwal’s Healthcare compare to its industry peers?
The company’s Price-to-Earnings (P/E) ratio can be compared with competitors like:
- Apollo Hospitals: 107.11
- Max Healthcare: 95.88
- Narayana Hrudayalaya: 33.14
- Aster DM Healthcare: 136.07
13. What is the growth potential of the Indian eye care market?
The market is valued at ₹37,800 crore (FY24) and is projected to grow at a CAGR of 12-14%, reaching ₹55,000-₹65,000 crore by FY28.
14. What are the company’s international operations?
Dr. Agarwal’s Healthcare has an international presence with 15 facilities, including 9 centers in Africa.
15. Who are the lead managers and registrar for the IPO?
- Book Running Lead Managers: Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors.
- Registrar: Kfin Technologies Limited.
16. Is there a Shareholder Quota for the IPO?
Yes, shareholders of specific parent companies (if applicable) are eligible to apply under the Shareholder Reservation Quota. Check the IPO prospectus for detailed criteria.
The company has reserved 11,29,574 equity shares(1.5%) under shareholder quota. Eligible Shareholders of AEHL as of the RHP date(23rd Jan), would be eligible to apply for this Offer under the Shareholder's Reservation Portion.
17. What are the risks of investing in this IPO?
As with any investment, consider the following risks:
- Competitive pressures in the healthcare sector.
- Regulatory changes impacting operations.
- Dependency on growth projections of the eye care market.
18. Why should I invest in this IPO?
Reasons to invest include:
- Strong market leadership (25% share in the eye care sector).
- Expanding the network of 209 facilities.
- Growth potential of India’s eye care industry.
- Proven operational excellence and backing by reputed investors (TPG and Temasek).
19. Can I sell the shares on the day of listing?
Yes, if allotted, you can sell your shares once the stock is listed on the exchanges.
20. Where can I find updates on the IPO?
For real-time updates, visit IPO Ji or check announcements on the BSE and NSE websites.