Dr Agarwal’s Healthcare IPO Day 3 Live Updates: The initial public offering (IPO) of Dr Agarwal’s Healthcare Ltd, an eye care service provider supported by Temasek Holdings and TPG, has entered its third and the last day of the bidding process. Dr Agarwal’s Healthcare IPO has been subscribed 42% in the first two days of subscription period and investors have only one day left to apply for the IPO.
Dr Agarwal’s Healthcare IPO opened for subscription on Wednesday, January 29, and will conclude today, January 31. Dr Agarwal’s Healthcare IPO price band has been set at ₹382 to ₹402 per share. The company plans to raise ₹3,027.26 crore from the public issue which consists of a new issue of up to ₹300 crore along with an Offer For Sale (OFS) of up to 6.78 crore equity shares valued at ₹2,727.26 crore if priced at the highest point of the price range. The company has already garnered over ₹875.5 crore from anchor investors.
The funds raised from the new issue, approximately ₹195 crore, will be allocated for debt repayment. Additionally, a portion of the funds will be directed towards general corporate needs and unspecified acquisitions.
Dr Agarwal’s Health Care offers a wide array of services, including cataract, refractive, and other surgeries, consultations, diagnosis, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care-related pharmaceutical items.
As of September 2024, the network included 193 facilities, primarily located in South India, especially in Chennai, Hyderabad, and Bengaluru, with a significant presence also in Western India.
Stay tuned for more updates
Dr Agarwal’s Healthcare IPO Live Updates: Largest eye care services provider in India
As per Crisil’s report, Dr. Agarwal’s Health Care is India’s largest eye care service chain in revenue in the last fiscal year 2024, which is approximately 1.7x of the second largest eye care service chain in the country. Additionally, the company had a 25% market share in the segment in the same period. As of September 30, 2024, the company has 193 facilities in India spanning 14 states and 4 UTs, and 16 facilities spread across 9 countries of Africa.
Dr Agarwal’s Healthcare IPO Live Updates: Offers end-to-end comprehensive eye care services
Dr. Agarwal’s Health Care is an end-to-end eye care services provider offering a comprehensive set of services. The company provides a comprehensive range of eye care products and services, covering cataract surgeries, refractive treatments, and other services such as consultations, clinical investigations, and non-surgical treatments. In addition, standard operating procedures (SOPs) are vital growth drivers for the eye care service chain in India.
Dr Agarwal’s Healthcare IPO Live Updates: Here’s what GMP hints ahead of last bidding day
Dr Agarwal’s IPO GMP today is +1.5. This indicates Dr Agarwal’s Healthcare share price was trading at a premium of ₹1.5 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Dr Agarwal’s Healthcare share price is indicated at ₹403.5 apiece, which is 0.37% higher than the IPO price of ₹402.
Today’s IPO GMP is pointing lower and is predicted to decline further based on grey market activity over the last 8 sessions. According to experts on investorgain.com, the lowest GMP is ₹1.50, and the highest is ₹54.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Dr Agarwal’s Healthcare IPO Live Updates: Issue enters last day of bidding
Dr Agarwal’s Healthcare IPO Live: The initial public offering (IPO) of Dr Agarwal’s Healthcare Ltd, an eye care service provider supported by Temasek Holdings and TPG, has entered its third and the last day of the bidding process. Dr Agarwal’s Healthcare IPO has been subscribed 42% in the first two days of subscription period and investors have only one day left to apply for the IPO.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Scalable, asset-light, hub-and-spoke operating mode
The company’s centres operate on a “hub-and-spoke” model which supports high patient volumes and yields economies of scale and thus allowing greater accessibility and choice to patients. The company follows asset light model as out of total 193 facilities, as of Sep’24, 192 are on lease which enables it commit minimal upfront investments.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Issue subscribed 42% so far
The initial public offer of Dr Agarwal IPO has been subscribed 42% on the second day of subscription, at 16:00 IST, as per BSE data.
The initial share sale received bid for 2,22,75,015 shares against 5,35,26,172 shares on offer, according to BSE.
The portion for retail investors received 23% subscription while the quota for non-institutional investors got subscribed 11%. The qualified institutional buyers (QIBs) has been booked 1.01x. The employee portion was subscribed 16%, while the portion reserved for shareholders was booked 24%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Check out investment rationales of Mehta Equities
- Largest eye care services provider in India with a trusted brand
- End-to-end, comprehensive eyecare services offering
- Scalable, asset-light, hub-and-spoke operating model
- Proven clinical excellence driven by a strong clinical board and history of surgical innovations
- Continued organic expansion of the network in India
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Growth Strategy
- To continue organic expansion of networks in India
- Strengthen brand equity with community, patients, and doctors across India
- Undertake opportunistic acquisitions and restructuring to scale operations, leveraging on experience of inorganic growth and integration
- Focus on improving profitability and Facility-level growth and enhancing operational efficiencies
- Attracting and retaining qualified doctors
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Issue subscribed 39% so far
The initial public offer of Dr Agarwal IPO has been subscribed 39% on the second day of subscription, at 14:45 IST, as per BSE data.
The initial share sale received bid for 2,08,90,765 shares against 5,35,26,172 shares on offer, according to BSE.
The portion for retail investors received 21% subscription while the quota for non-institutional investors got subscribed 10%. The qualified institutional buyers (QIBs) has been booked 95%. The employee portion was subscribed 16%, while the portion reserved for shareholders was booked 23%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Here’s what SBICAP Securities say about the issue
The company in its previous 2 years has reported 38%/41%/48% CAGR in Revenue/EBITDA/PAT to ₹1,332 cr/ ₹362 cr/ ₹95 cr respectively. While comparing the stock with its close peers, the issue appears to be fairly priced on valuation and financial parameters. We recommend investors to subscribe to the issue at CUT-OFF price for long term investment horizon.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Unique Business Model
The company’s cost-efficient model utilizes only beds without in-patient services, eliminating the need to own or lease hospital premises. With a 67-year legacy, it operates a hub-and-spoke system to optimize outreach and efficiency.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Issue subscribed 38% so far
The initial public offer of Dr Agarwal IPO has been subscribed 38% on the second day of subscription, at 13:27 IST, as per BSE data.
The initial share sale received bid for 2,04,08,115 shares against 5,35,26,172 shares on offer, according to BSE.
The portion for retail investors received 20% subscription while the quota for non-institutional investors got subscribed 9%. The qualified institutional buyers (QIBs) has been booked 95%. The employee portion was subscribed 15%, while the portion reserved for shareholders was booked 22%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Growth in Core and Non-Core Markets
In core markets such as Tamil Nadu, Andhra Pradesh, and Karnataka, facilities reach breakeven within 6-7 months, whereas non-core markets take 15 months. Non-core facilities generate ₹4.5 crore in revenue in the first year, scaling to ₹15 crore by the fifth year, with margins of 33-34%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Cataract Surgery Trends:
India’s cataract surgeries increased from 11 million in FY2019 to 14 million in FY2023 (4-6% CAGR) and are expected to reach 17-19 million by FY2028. Despite industry growth, the company’s share remains modest at 1%, performing 1,29,103 surgeries in FY2023.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Geographical Focus
Primarily operating in South and West India, the company derives 10% of its revenue from Africa but is strategically reducing its focus there to prioritize higher-growth markets in India. Emerging facilities provide opportunities for expansion and improved margins.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Issue subscribed 11% so far
The initial public offer of Dr Agarwal IPO has been subscribed 11% on the second day of subscription, at 12:15 IST, as per BSE data.
The initial share sale received bid for 60,70,085 shares against 5,35,26,172 shares on offer, according to BSE.
The portion for retail investors received 18% subscription while the quota for non-institutional investors got subscribed 8%. The qualified institutional buyers (QIBs) part is yet to be booked. The employee portion was subscribed 14%, while the portion reserved for shareholders was booked 20%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Market Share and Leadership
The company holds a 13-15% market share in the Indian eye care service chain and claims a 25% share in terms of facilities and revenue. With significant room for expansion, particularly in emerging markets, it is well-positioned to capitalize on industry growth trends.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Check out Canara Bank Securities views
The company’s issue is available at a P/E ratio of 128x for FY2024 and 200x for FY2025E, indicating aggressive pricing compared to established multi-specialty hospitals in the industry. Company is concentrated only in single specialty of eye care market.
We are bullish on the company’s growth prospects but valuation remains a concern. Hence, a NEUTRAL stance is recommended.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Issue subscribed 10% so far
The initial public offer of Dr Agarwal IPO has been subscribed 10% on the second day of subscription, at 11:06 IST, as per BSE data.
The initial share sale received bid for 54,90,310 shares against 5,35,26,172 shares on offer, according to BSE.
The portion for retail investors received 17% subscription while the quota for non-institutional investors got subscribed 8%. The qualified institutional buyers (QIBs) part is yet to be booked. The employee portion was subscribed 13%, while the portion reserved for shareholders was booked 19%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: All you need to know about the financials
In FY24, the company reported Revenue from Operations ₹1,332.15 crores (FY23: ₹1,017.98 crores) with Profit After Tax of ₹95.05 crores (FY23: ₹103.23 crores).
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Competitive Strengths
- Largest eye care services provider in India
- Offers end-to-end comprehensive eye care services
- Company follows scalable, asset-light, hub-and-spoke operating model
- Proven clinical excellence driven by a strong clinical board
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Here’s what Adroit Financial Services says
The company generated 9.33% of the capital of the shareholders (ROE) in the last fiscal. With this, the company has generated a 14.61% return on capital deployed. The pre-IPO PE ratio is 130.44, based on FY24 earnings, which is higher than its peers.
Although the valuations are elevated, investors may still choose to “Subscribe” to the IPO, recognizing its potential for sustained growth over the long term.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Check out key risks
- Operates in high regulated industry.
- Retention of qualified and experienced doctors.
- Majority of total issue is OFS i.e 90.09%.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Check out Mehta Equities views on the issue
“We believe India’s eye care market is expected to grow at a CAGR of ~11.5%, reaching Rs.378 billion in FY2024, presenting significant opportunities for the company to deepen its footprint in underserved regions. We believe its organic growth strategy and focus on expanding the primary facility network position it well to capture this growing demand. Hence, looking at all attributes we recommend our investors to “SUBSCRIBE” the Dr. Agarwal’s Health Care Ltd IPO for long term perspective only,” the brokerage said.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: IPO details
Dr Agarwal’s Healthcare IPO comprises a fresh equity share issuance of ₹300 crore, along with a sell-off of 6.78 crore shares amounting to ₹2,727.3 crore from current stakeholders.
In addition to the promoters, the stakeholders involved in the sell-off include Arvon Investments Pte and Claymore Investments Mauritius Pte, both associated with the private equity firm Temasek Holdings, and Hyperion Investments Pte, linked to the US private equity firm TPG.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Check out the objects of the issue
From the net proceeds of the new offering, the company aims to allocate ₹195 crore towards debt repayment. The remaining funds will also be directed towards unannounced inorganic acquisitions and general business requirements.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Check out details on lead managers
The main book-running lead managers for Dr Agarwal IPO are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited. Kfin Technologies Limited serves as the registrar for the issue.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Key things to know about the issue
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Dr Agarwal’s Healthcare IPO Day 2 Live Updates: All you need to know about anchor investors
Prior to its initial offering to the public (IPO), Dr. Agarwal’s Health Care received more than ₹875.5 crore from anchor investors.
According to a circular posted on the BSE website, the anchor investors include the Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, Morgan Stanley, Government Pension Fund Global (Norway), Fidelity, Nomura, Invesco Mutual Fund (MF), Motilal Oswal MF, Canara Robeco MF, and Tata MF.
The company issued 2.17 crore equity shares to 43 funds at the upper end of the pricing range, ₹402 per share, in accordance with the circular.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Key dates to know
Tentatively, Dr Agarwal’s Healthcare IPO basis of allotment of shares will be finalised on Monday, February 3, and the company will initiate refunds on Tuesday, February 4, while the shares will be credited to the demat account of allottees on the same day following refund. Dr Agarwal’s Healthcare share price is likely to be listed on BSE and NSE on Wednesday, February 5.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: IPO reservation
Dr Agarwal IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 1,579,399 equity shares, and the shareholders have been reserved up to 1,129,574.
Dr Agarwal’s Healthcare IPO Day 2 Live Updates: Here’s what GMP signal ahead of second bidding day
Dr Agarwal’s IPO GMP today is +5. This indicates Dr Agarwal’s Healthcare share price was trading at a premium of ₹5 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Dr Agarwal’s Healthcare share price is indicated at ₹407 apiece, which is 1.24% higher than the IPO price of ₹402.
Today’s IPO GMP is pointing lower and is predicted to decline further based on grey market activity over the last 7 sessions. According to experts on investorgain.com, the lowest GMP is ₹5, and the highest is ₹54.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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