Dr Agarwal’s Health Care Listed at a 1.27% Discount on BSE, Listed at ₹402 on NSE

Dr Agarwal's Health Care entered the stock market on February 4, 2025, with shares listed at ₹402 on the NSE, matching the IPO price. On the BSE, the stock opened slightly lower at ₹396.90, a 1.27% dip from the issue price. This modest debut has garnered attention from investors and market analysts alike.

Market Performance

The initial public offering (IPO) of Dr Agarwal's Health Care was available for subscription between January 29 and January 31, 2025, valued at ₹3,027.26 crore. The IPO price band was set between ₹382 and ₹402 per equity share. Upon closing, the IPO was subscribed 1.49 times, receiving bids for 7.98 crore shares against the 5.35 crore shares on offer.

Subscription Breakdown

The subscription details across various investor categories were as follows:

• Retail Investors: Subscribed 0.42 times
• Non-Institutional Investors (NII): Subscribed 0.39 times
• Qualified Institutional Buyers (QIB): Subscribed 4.41 times
• Employees: Subscribed 0.26 times
• Others: Subscribed 0.51 times

The QIB segment showed significant interest, while other categories, including retail investors, displayed relatively subdued enthusiasm.

IPO Details

The IPO comprises of 75 Lakh Fresh Issues and 6.78 Crore Offer For Sale Shares that amount to ₹300 Crore and ₹2,727.26 crores, respectively. Retail Investors were offered the minimum lot of 35 Shares amounting to require ₹14,070 investment.

Before the IPO on January 28, 2025, Dr. Agarwal's Health Care raised ₹875.51 crore from anchor investors, indicating strong institutional interest.

Utilization of Funds

The net proceeds obtained from the fresh issue will be allocated towards:

1. Debt Repayment or Prepayment: A portion of the funds will be used to repay or prepay certain borrowings, enhancing the company's financial health.
2. General Corporate Purposes: Funds will be utilized for various corporate needs to support ongoing operations.
3. Potential Inorganic Acquisitions: The company plans to explore and invest in unidentified inorganic growth opportunities to expand its market presence.

Company Overview

Founded in 2010, Dr Agarwal's Health Care Limited provides eye care services in a wide range, including:

• Cataract and refractive surgeries
• Consultations and diagnostics
• Non-surgical treatments
• Sale of optical products, contact lenses, accessories, and eye care-related pharmaceuticals

The company has a workforce of 737 doctors. During the first half of the fiscal year, ending September 30, 2024, it provided medical care to 1.15 million patients and performed 140,787 surgical procedures.

Summary

Dr Agarwal's Health Care's stock market debut was modest, with shares listed at the IPO price on the NSE and slightly below on the BSE. The IPO saw varied interest across investor categories, with QIBs showing significant engagement. The company would utilise raised funds for debt repayment, corporate purposes, and potential acquisitions to strengthen its position in the eye care sector.