Dr. Agarwal’s Health Care Limited, a renowned player in the eye care industry, has launched its much-anticipated Initial Public Offering (IPO). With a strong legacy in ophthalmology, the company provides a wide range of services, including cataract and refractive surgeries, consultations, diagnoses, and non-surgical treatments. The IPO aims to raise capital to support expansion and repay borrowings. This article provides an in-depth analysis of the IPO, financials, valuations, and whether investors should subscribe.
Dr. Agarwal’s Health Care IPO Details
| IPO Date | 29 – 31 January 2025 |
|---|---|
| Issue Price | INR 382 – 402 per share |
| Fresh Issue | INR 300 crore |
| Offer for Sale | 6,78,42,284 Shares (INR 2,591.57 – 2,727.26 crore) |
| Total IPO Size | INR 2,891.57 – 3,027.26 crore |
| Minimum Bid | 35 Shares (INR 14,070) |
| Retail Allocation | 35% |
| Listing Exchange | NSE, BSE |
Company Overview
Dr. Agarwal’s Health Care has an extensive network of 193 facilities spread across 14 states, four union territories in India, and 16 facilities in nine African countries. The company served over 2.13 million patients and performed 2,20,523 surgeries in FY 2024, capturing approximately 25% of India’s eye care service market.
Financial Performance
| Year | Revenue (INR Cr.) | Expenses (INR Cr.) | Net Income (INR Cr.) | Margin (%) |
| FY 2022 | 696.08 | 657.02 | 37.69 | 5.41% |
| FY 2023 | 1,017.98 | 947.90 | 94.10 | 9.24% |
| FY 2024 | 1,332.15 | 1,235.88 | 83.06 | 6.23% |
| H1 FY 2025 | 820.06 | 777.59 | 28.56 | 3.48% |
Valuations & Margins
| Year | EPS (INR) | PE Ratio | ROCE (%) | Debt/Equity Ratio |
| FY 2023 | 4.00 | 122.04 – 128.43 | 15.18 | 1.08 |
| FY 2024 | 3.13 | 211.05 – 222.10 | 14.61 | 0.61 |
| H1 FY 2025 | 1.81 | 211.05 – 222.10 | – | – |
The company’s debt-to-equity ratio has improved significantly, reflecting a strong financial position. However, a high PE ratio indicates premium pricing.
IPO Subscription Status & Grey Market Premium (GMP)
| Date | IPO GMP (INR) | Kostak (INR) | Subject to Sauda (INR) |
| 29 Jan 2025 | 12 | NA | 500 |
| 28 Jan 2025 | 18 | NA | 900 |
| 27 Jan 2025 | 33 | NA | 1,300 |
| 25 Jan 2025 | 45 | NA | 3,000 |
A declining GMP trend suggests cautious investor sentiment.
Comparison With Listed Peers
| Company | PE Ratio | EPS (INR) | ROE (%) | Revenue (INR Cr.) |
| Dr. Agarwal’s Health Care | 222.10 | 3.13 | 6.21 | 1,332.15 |
| Apollo Hospitals Enterprise | 113.47 | 62.50 | 12.97 | 19,059.20 |
| Max Healthcare | 98.56 | 10.84 | 12.58 | 6,849.00 |
| Fortis Healthcare | 76.33 | 7.93 | 7.82 | 6,892.92 |
| Global Health | 62.32 | 17.80 | 16.46 | 3,275.11 |
Dr. Agarwal’s has a higher PE ratio compared to peers, which may deter some investors.
IPO Objectives
The company aims to use the net proceeds from the IPO for:
- Debt repayment (INR 195 crore)
- General corporate purposes
- Strategic acquisitions
IPO Dates & Listing Performance
| Event | Date |
| IPO Open | 29 Jan 2025 |
| IPO Close | 31 Jan 2025 |
| Allotment Finalization | 3 Feb 2025 |
| Refunds Initiated | 4 Feb 2025 |
| Demat Share Transfer | 4 Feb 2025 |
| Listing Date | 5 Feb 2025 |
Should You Subscribe?
Brokerage Recommendations
| Brokerage | Recommendation |
| Adroit Financial | Subscribe |
| Anand Rathi | Subscribe for Long Term |
| BP Wealth | Avoid |
| Canara Bank Securities | Neutral |
| Elite Wealth | Apply |
| Geojit | Subscribe for Long Term |
| Mehta Equities | Subscribe for Long Term |
| SBI Securities | Subscribe for Long Term |
| Jainam Broking | Avoid |
Final Verdict
While Dr. Agarwal’s Health Care has a strong brand and growth trajectory, its high valuation is a concern. Investors should consider subscribing only for long-term gains.
FAQs
1. How can I apply for Dr. Agarwal’s Health Care IPO?
Investors can apply through ASBA via internet banking or UPI through stockbrokers.
2. What is Dr. Agarwal’s IPO GMP today?
As of 29 January 2025, the GMP is INR 12 per share.
3. When will Dr. Agarwal’s Health Care IPO be listed?
The IPO is expected to be listed on NSE and BSE on 5 February 2025.
4. What is the retail investor allocation for this IPO?
Retail investors have a 35% allocation.
5. Should I invest in Dr. Agarwal’s Health Care IPO?
It is recommended for long-term investors due to its high valuation and potential future growth.