The Dr Agarwals Health Care IPO opens today, January 29, 2025, offering public investors an opportunity to subscribe to shares of one of India’s leading eye care providers. The company has already raised Rs 875.51 crore from anchor investors ahead of the public offering, which concludes on January 31, 2025.
For potential investors, this article covers all the essential details you need to know about the Dr Agarwals Health Care IPO, including the issue size, price band, GMP (Grey Market Premium), broker reviews, and listing schedule.
Dr Agarwals Health Care IPO: Key Details
- Issue Size: The total issue size of the Dr Agarwals Health Care IPO is Rs 3,027.26 crore, comprising a fresh issue of 74,62,686 equity shares and an offer for sale (OFS) by promoters, who are divesting up to 6,78,42,284 equity shares. Each share has a face value of Re 1.
- Price Band: The price band for the Dr Agarwals Health Care IPO is set between Rs 382 and Rs 402 per share. The lot size for the offering is 35 shares. So, retail investors can bid for a minimum of 35 shares, which requires an investment of Rs 14,070. To bid for the maximum 14 lots (490 shares), an investor will need Rs 1,93,154.
- GMP (Grey Market Premium): The Dr Agarwals Health Care IPO GMP is currently Rs 12, reflecting a 3% premium over the upper price band of Rs 402. This indicates positive sentiment in the grey market ahead of the IPO’s launch.
IPO Subscription Timeline
- IPO Subscription Period: The IPO will be available for subscription until Friday, January 31, 2025.
- Allotment: The basis of allotment for the shares is expected to be finalized on February 3, 2025.
- Listing Date: Dr Agarwals Health Care shares are expected to list on the BSE and NSE on February 4, 2025.
Company Overview and Future Prospects
Dr Agarwal’s Health Care provides a comprehensive range of eye care services, including cataract surgeries, refractive surgeries, diagnostics, consultations, and non-surgical treatments. With 28 hubs and 165 spokes across India, the company has successfully expanded its market share, becoming a major player in the eye care industry.
The company plans to use the proceeds from the fresh issue to repay borrowings, fund acquisitions, and enhance its corporate capabilities. Dr Agarwals Health Care has established itself as a trusted name in the sector, backed by a robust asset-light model that focuses on both organic and inorganic growth.
Brokerage Firm Views on the IPO
Several prominent brokerage firms have shared their views on whether investors should subscribe to the Dr Agarwals Health Care IPO.
- Canara Bank Securities: Analysts have rated the IPO as neutral, citing aggressive pricing relative to competitors. While the company’s dominance in the eye care sector and strategic growth initiatives are positive, the high price-to-earnings ratio (P/E) of 128x for FY2024 raises concerns about the valuation.
- Anand Rathi Research: This brokerage recommends subscribing for the long term. They highlight that while the IPO is richly priced, Dr Agarwals Health Care has a significant market share in eye care services and plans to expand across India, which could provide growth potential in the coming years.
- SBI Securities: Analysts at SBI Securities also suggest subscribing for the long-term. The company is valued at 33.9x EV/Ebitda multiple for FY24, which they believe is fairly priced when compared to peers. They advise investors to opt for the IPO at the cut-off price for a long-term investment.
Should You Subscribe to Dr Agarwals Health Care IPO?
If you are looking for a long-term investment in the growing eye care market, Dr Agarwals Health Care offers a promising opportunity despite its relatively high valuation. The company has shown strong operational growth and is well-positioned in an industry with favorable trends, such as the rising demand for eye care driven by aging populations and diabetes-related eye conditions.
However, the aggressive pricing of the IPO might make it a risky short-term investment. For short-term traders, the GMP indicates a slight premium, but for long-term investors, the growth story of Dr Agarwals Health Care could outweigh valuation concerns.
Conclusion
As the Dr Agarwals Health Care IPO opens for subscription today, it presents an opportunity for both short- and long-term investors. While brokerages like Anand Rathi and SBI Securities suggest subscribing for the long-term, analysts at Canara Bank Securities advise caution due to the high valuation.
Keep an eye on the GMP and decide based on your investment horizon. Whether you subscribe to the Dr Agarwals Health Care IPO now or later, understanding the company’s future growth prospects and industry dynamics will be crucial in making an informed decision.
read more about IPO updates niftynews