Dr Agarwals Healthcare IPO: GMP, Price, Date & Full Details

Dr Agarwals Healthcare IPO - Complete Overview 

Dr Agarwals Healthcare IPO a Mainboard IPO is a book-built issue of Rs.3,027.26 Cr (7,53,04,970 Shares) by Dr Agarwals Healthcare Limited incorporated in the year 2010. The company extended an extensive management provider to eye care through cataract and refractive surgeries, consultations, diagnostic, and non-surgical treatments, and the sales of optical products, contact lenses, accessories, and eye care-related pharmaceutical items.

By September 30, 2024, 737 doctors cared for the patients in all its health centers. In this period, 2.13 million patients were looked after by the company and 220,523 surgeries were performed. The company cured operated 140,78 and cured 1.15 million patients by September 30, 2024.

This new IPO is to be launched on 29 Jan 2025, and the initial public offering of this upcoming IPO will end on 31 Jan 2025.

Dr. Agarwal’s Health Care Limited IPO Details

This Rs.3,027.26 Cr Dr. Agarwal’s Health Care Limited IPO comprises a combination of a fresh issue of 0.75 crore Shares (Rs.300 Cr) and an offer for sale of 6.78 crore Shares (Rs.2,727.26 Cr). 

The IPO listing date is on February 05, 2025. Dr Agarwals Healthcare IPO price is Rs.382 to Rs.402.

Click to open a demat account and apply for the IPO.

 

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Revenue Breakdown from Surgeries

(Amount in millions)

 

Revenue Breakdown from Sales

(Amount in millions)

 

Revenue Breakdown from Facilities

(Amount in millions)

(Source RHP)

The Objective of the Issue

• Partial or complete repayment or payback of some of the loans.

• General business objectives and an undisclosed inorganic acquisition.

Peers of Dr. Agarwals Health Care Limited

 

Evaluation

The Dr Agarwals IPO price is between Rs.382 to Rs.402 per Share.


Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.14 from the last year, the resulting P/E ratio is 128.02x. 

Considering the weighted EPS of Rs.3.21 for the last three years, the P/E ratio is 125.23x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 82.44x.

In simple words, the P/E ratio of this IPO (128.02x), compared with the industry’s average P/E of 82.44x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• India's leading service provider for ophthalmic health services is Bulmand Vision's trusted brand.

• Everything an eye needs is in one place.

• Highly scalable asset-light model of operation around the hub and spoke.

• The robust clinical practice has a prominent clinical board and a heritage of operative innovation.

• Demonstrated senior medical executive and accomplished management with the physician-promoters at the top.

 

IPO’s Weaknesses 

• Physician Engagement and Recruitment: It is involved in the retainership of such doctors. The failure to retain or mate professional medical practitioners could be damaging to the execution of its business operations and financial performance.

• Reputation and Brand Equity in the Market: Maintaining and enhancing brand image is the sine qua non. Failure in brand management or negative publicity could have disastrous effects on financial performance and business prospects.

• Regulatory Compliance: It is a highly regulated sector where the company is supposed to conform to various safety, health, and labor regulations. Should it fail to adhere to any of these and/or fail to renew relevant permissions, this could harshly injure its business operations.
  
  

• Geographic Concentration: Some extent of the facilities are located in Tamil Nadu, Maharashtra, and Karnataka. Any negative developments in those areas would severely affect the business and financial stability. 

Dr Agarwals Healthcare IPO GMP

Dr Agarwals Healthcare IPO GMP today is Rs.60 as of 24 January 2025. With the price of Rs.402, the estimated listing price is Rs.462 while writing this information. 

Dr Agarwals IPO Timetable (Tentative)

The IPO date is from 29 January to 31 January, with IPO allotment on 03 February, and refund initiation on 04 February 2025. The IPO listing date is 05 February 2025.

IPO Other Details 

The IPO with a face value of Rs.1 per Share, offers an IPO size of 7,53,04,970 Shares (Rs.3,027.26 Cr) and it will be listed at BSE and NSE.

 

IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (35 Shares) amounting to Rs.14070 and 14 Lots (490 Shares) amounting to Rs.1,96,980 respectively, while for HNI investors, the minimum Lot is 15 (525 Shares) amounting to Rs.2,11,050.

IPO Reservation

Promoters and Management of Dr Agarwals Healthcare Ltd. 

• Dr. Amar Agarwal

• Dr. Athiya Agarwal

• Dr. Adil Agarwal

• Dr. Anosh Agarwal

• Dr. Ashvin Agarwal

• Dr. Ashar Agarwal

• Dr. Amar Agarwal Family Trust

• Dr. Adil Agarwal Family Trust

• Dr. Anosh Agarwal Family Trust

• Dr. Ashvin Agarwal Family Trust

• Dr. Ashar Agarwal Family Trust

• Dr. Agarwal’s Eye Institute 

• Dr. Agarwal's Eye Institute Private Limited

 

• Kotak Mahindra Capital Company Limited.

• Morgan Stanley India Company Pvt Ltd.

• Jefferies India Private Limited.

• Motilal Oswal Investment Advisors Limited.
  
  

Dividend Policy

The company has not paid a dividend in the last three FYs.

Conclusion

Dr. Agarwals Healthcare's IPO offers an opportunity to invest in a leading eye care service provider with a strong network. Still, the high P/ E rate suggests the IPO is aggressively priced compared to listed peers. While the company has shown harmonious growth, investors should estimate pitfalls like geographic attention and non-supervisory compliance. Overall, it's a promising but conservative investment for those aligned with the healthcare sector.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

 

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