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Dr Agarwal's Healthcare IPO opens on January 29; check issue size, price band, business model & more
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5 min read | Updated on January 24, 2025, 12:03 IST
SUMMARY
Dr Agarwal's Healthcare IPO is a combination of fresh issuance of 75.3 lakh shares, aggregating to ₹300 crore, and an offer-for-sale (OFS) of 6.78 crore shares, aggregating to ₹2,727.26 crore. Price band for the offer has been fixed at ₹382 to ₹402 per share. The IPO will remain open for subscription from January 29 to January 31.
Dr Agarwal's Healthcare IPO opens on January 29: Check offer size, price band, key competitors and more | Image source: Shutterstock
Leading eye care services provider Dr. Agarwal’s Healthcare will launch its initial public offering (IPO) next week. The ₹3,027.2 crore mainboard issue will remain open for subscription from January 29 to January 31.
The Dr Agarwal's Healthcare IPO is a 100% book-built issue. The IPO combines fresh issuance of 75.3 lakh shares, aggregating to ₹300 crore, and an offer-for-sale (OFS) of 6.78 crore shares, aggregating to ₹2,727.26 crore.
Dr. Agarwal’s Healthcare is the parent company of BSE-listed Dr Agarwal's Eye Hospital. The parent firm held 71.9% stake in its subsidiary Dr Agarwal's Eye Hospital.
Dr Agarwal's Healthcare business model
Dr. Agarwal's Healthcare provides a comprehensive range of eye care services and sells optical and eyecare-related pharmaceutical products.
The company says that it endeavours to address all the needs of its patients in their eye treatment journey through a network, which comprised 209 facilities as of September 30, 2024.
Dr. Agarwal's Healthcare’s offerings are primarily divided into two categories in the eyecare segment.
Services
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Surgeries: The company provides cataract surgeries, refractive surgeries and other surgeries for eye ailments, such as surgical retinal treatments, corneal transplantation and for treatment of glaucoma and pterygium.
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Consultations: Dr. Agarwal's Healthcare’s services also include consultations, diagnoses and non-surgical treatments, including retinal laser therapy and dry eye treatment.
Products
Dr. Agarwal's Healthcare key strengths
Weaknesses
Competition
The eyecare industry is highly competitive in India. The company faces competition from a large number of public hospitals, private hospitals, and eye clinics located in the same geographic areas it operates in. Some of the leading names include ASG Hospital Pvt. Ltd, Disha Eye Hospitals Pvt. Ltd, Eye 7 Hospitals Pvt. Ltd, Eye-Q Vision Pvt. Ltd, Lotus Eye Hospital and Institute Ltd, Maxivision Eye Hospitals Pvt. Ltd, and New Delhi Centre for Sight Ltd.
Financials
Dr. Agarwal's Healthcare has seen a solid growth in revenue and profit over the past couple of financial years.
| Particulars (in ₹ crore) | 6MFY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Revenue from operations | 820 | 1,332 | 1,018 | 696 |
| Profit | 39.5 | 95 | 103.2 | 43.2 |
Key Performance Indicators
| KPI | Values* |
|---|---|
| Return on equity | 9.33% |
| Return on capital employed | 14.61% |
| Return on net worth | 6.2% |
| PAT margin | 6.9% |
| Price-to-book value | 7.96 |
Dr. Agarwal's Healthcare IPO objective
Dr. Agarwal's Healthcare proposes to utilise the net proceeds from the IPO towards repayment/prepayment, in part or full, of certain of its borrowings. According to the company’s offer documents, it plans to use ₹195 crore for the same.
A portion of funds would also be used for general corporate purposes and for unidentified inorganic acquisition.
Dr. Agarwal's Healthcare IPO details
The Dr Agarwal's Healthcare IPO is a 100% book-built issue. It is a combination of fresh issuance of 75 lakh shares, aggregating to ₹300 crore, and an offer-for-sale (OFS) of 6.78 crore shares, aggregating to ₹2,727.26 crore.
Price band for the offer has been fixed at ₹382 to ₹402 per share. The minimum bid size, also known as lot size, for an application is 35 shares. The retail investors need to invest at least ₹14,070 for a single lot size.
The IPO allotment status is expected to be finalised on February 3. Dr Agarwal's Healthcare shares are scheduled to be listed on the BSE and the National Stock Exchange of India (NSE) on February 5.
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