Dr. Agarwal’s Health Care Ltd., a prominent name in the Indian healthcare sector, recently concluded its Initial Public Offering (IPO), garnering significant attention from investors. The IPO, which opened on January 29 and closed on January 31, 2025, was fully subscribed, reflecting the market’s confidence in the company’s growth trajectory.
IPO Subscription Details
The IPO received bids for 83,218,380 shares against the 53,526,172 equity shares on offer, translating to a total subscription of 1.55 times. Qualified Institutional Buyers (QIBs) led the demand, subscribing 4.64 times their allotted portion, with applications for 67,361,280 shares against the 14,519,200 shares reserved for them. Non-Institutional Investors (NIIs) subscribed to 40% of their quota, bidding for 4,307,310 shares compared to the 10,889,400 shares available. Retail Individual Investors (RIIs) applied for 10,540,285 shares against the 25,408,599 shares reserved, resulting in a 41% subscription. The employees’ segment saw a 27% subscription, with 425,565 bids against 1,579,399 shares on offer.
Dr Agarwal’s IPO Allotment and Listing Details
The basis of allotment for Dr. Agarwal’s Health Care IPO was finalized on February 3, 2025. Investors who participated in the IPO can check their allotment status through multiple platforms:
- KFin Technologies (Registrar’s Portal):
- Visit the IPO allotment status page: https://ipostatus.kfintech.com/
- Select ‘Dr Agarwal’s Healthcare Ltd’ from the dropdown list.
- Enter either PAN, Application Number, DP ID, or Account Number.
- Complete the verification process and submit to view the allotment status.
- National Stock Exchange (NSE):
- Navigate to the bid verification portal: https://www.nseindia.com/invest/check-trades-bids-verify-ipo-bids
- Select ‘Dr Agarwal’s Health Care Ltd’.
- Enter the application number and PAN.
- Submit to view the allotment status.
- Bombay Stock Exchange (BSE):
- Go to the IPO allotment page: https://www.bseindia.com/investors/appli_check.aspx
- Choose ‘Equity’ as the issue type.
- Select ‘Dr Agarwal’s Health Care Ltd’ from the list.
- Enter PAN or application number.
- Click ‘Submit’ to view the status.
Investors who have been allotted shares can expect them to be credited to their Demat accounts by February 4, 2025. The shares are scheduled to be listed on both the NSE and BSE on February 5, 2025, at 10:00 AM.
IPO Details
The ₹3,027.26 crore IPO comprised a fresh issue of ₹300 crore and an offer-for-sale (OFS) worth ₹2,727.26 crore. The price band was set between ₹382 and ₹402 per equity share. Investors could apply for a minimum of one lot, consisting of 35 shares, requiring a minimum investment of ₹14,070.
Company Overview
Dr. Agarwal’s Health Care is renowned for offering a range of services, including refractive and cataract surgeries, non-surgical treatments, diagnostics, and the sale of optical products. With a legacy spanning 67 years, the company operates a hub-and-spoke model to optimize outreach and efficiency. Over the past three years, the company has demonstrated robust financial growth, with revenue increasing by 38% to ₹1,332 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 42%, maintaining a strong 30% margin. Revenue per facility rose from ₹7.8 crore to ₹10.9 crore, achieving an 18.3% annual growth.
Financial Performance
The company’s financial trajectory has been impressive:
- FY22: Revenue of ₹696.08 crore; Net Profit of ₹43.16 crore.
- FY23: Revenue increased to ₹1,017.98 crore; Net Profit rose to ₹103.23 crore.
- FY24: Revenue further climbed to ₹1,332.15 crore; Net Profit stood at ₹95.05 crore.
- H1FY25: For the half-year ended September 30, 2024, revenue was ₹820.06 crore, with a Net Profit of ₹39.56 crore.
Utilization of IPO Proceeds
The funds raised through the fresh issue are earmarked for:
- Repayment and prepayment of certain borrowings.
- Funding inorganic acquisitions and other strategic initiatives.
- General corporate purposes.
Lead Managers and Registrar
The IPO’s Book Running Lead Managers were Kotak Mahindra Capital Company, Jefferies India, Motilal Oswal Investment Advisors, and Morgan Stanley India Company. KFin Technologies Ltd. served as the registrar for the issue.
Investor Considerations
Investors are advised to check their allotment status promptly and ensure that the allotted shares are credited to their Demat accounts.