Dr Agarwal's Healthcare has launched an IPO worth ₹3,027.26 crore. The issue consists of a fresh issue of 0.75 crore shares totaling ₹300 crore and an offer for sale of 6.78 crore shares amounting to ₹2,727.26 crore. The IPO was open for subscription from January 29, 2025, and will close on January 31, 2025. Allotments are expected to be finalised on February 3, 2025, with the listing likely on February 5, 2025, on both BSE and NSE.
The price band for the IPO is set between ₹382 and ₹402 per share. The minimum investment for retail investors is ₹14,070 for a lot of 35 shares. Small NII investors need to invest ₹2,11,050 for 15 lots, while large NII investors require ₹10,13,040 for 72 lots. Key managers of the issue include Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors. Kfin Technologies serves as the registrar.
Interested investors should review Dr Agarwal's Healthcare IPO RHP for detailed insights before investing.
Industry Outlook
- The Indian healthcare delivery market, valued at ₹6.3 trillion in FY 2024, is projected to grow at a CAGR of 9–11%, reaching ₹9.1–9.3 trillion by FY 2028. The in-patient department (IPD) share, contributing 71% in FY 2024, is expected to rise to 73% by FY 2028, driven by increasing per capita income, better health insurance penetration, and government healthcare initiatives.
- The eye care segment, a critical focus in the healthcare sector, grew at a CAGR of 11.5% from FY 2019 to FY 2024, reaching ₹378 billion. High demand for surgical and non-surgical treatments underscores the importance of specialised care.
Dr Agarwals Healthcare IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The company plans to use the net proceeds to repay or prepay certain borrowings, improving financial stability and reducing interest costs.
- The proceeds aim to facilitate unidentified acquisitions, driving growth through strategic expansion opportunities.
- The remaining funds will be used for general corporate purposes.
About Dr Agarwals Healthcare and Infra Solutions Limited
Dr Agarwal’s Healthcare Limited is a leading provider of eye care services in India, offering comprehensive treatments ranging from cataract and refractive surgeries to consultations and non-surgical therapies. The organisation also sells optical products, contact lenses, and pharmaceutical items. According to the CRISIL MI&A Report, it captured approximately 25% of the organised eye care service market in India in FY24.
As of September 2024, the network included 209 facilities, making it the largest among peers, with services provided by 737 doctors. In FY24, 2.13 million patients were served, and over 2,20,000 surgeries were performed. Facilities operate on a hub-and-spoke model with primary centres for diagnoses, secondary facilities for selected surgeries, and tertiary hubs for super-specialty procedures.
The Indian eye care market, valued at ₹378 billion in FY24, is projected to grow at a CAGR of 12%-14% to ₹550-650 billion by FY28, offering immense growth opportunities. With 193 facilities across India and 16 centres in Africa, the company caters to diverse patient needs.
Led by Dr Amar Agarwal, a renowned ophthalmologist, the organisation upholds high clinical standards. Prominent institutional investors include Temasek Holdings and TPG. This combination of a robust network, clinical excellence, and strong management positions the company to capitalise on the expanding eye care market.
How To Check the Allotment Status of Dr Agarwals Healthcare IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Dr Agarwals Healthcare IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Dr Agarwals Healthcare IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Dr Agarwals Healthcare IPO
Registered office: 1stFloor, Buhari Towers, No.4,Moores Road, Off Greams Road, Near Asan Memorial School, Chennai600006, Tamil Nadu, India
Phone:+91 44 4378 7777
E-mail: secretarial@dragarwal.com
Dr Agarwals Healthcare IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares |
Not more than 50% of the Net Offer |
|
Retail Shares |
Not less than 35% of the Net Offer |
|
NII (HNI) Shares |
Not Less than 15% of the Net Offer |
Dr Agarwals Healthcare IPO Anchor Investors Details
|
Bid Date |
January 28, 2025 |
|
Shares Offered |
2,17,78,798 |
|
Anchor Portion Size (In Cr.) |
875.51 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
March 5, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
May 4, 2025 |
Dr Agarwals Healthcare IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
35 |
₹14,070 |
|
Retail (Max) |
14 |
490 |
₹1,96,980 |
|
S-HNI (Min) |
15 |
525 |
₹2,11,050 |
|
S-HNI (Max) |
71 |
2,485 |
₹9,98,970 |
|
B-HNI (Min) |
72 |
2,520 |
₹10,13,040 |
Dr Agarwals Healthcare IPO Promoter Holding
The promoters of the company are 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 and Dr Agarwal's Eye Institute Private Limited.
|
Share Holding Pre-Issue |
37.72% |
|
Share Holding Post Issue |
- |
Key Performance Indicators for Dr Agarwals Healthcare IPO
As of March 31, 2024, the market capitalisation of Dr Agarwals Healthcare's IPO is ₹12698.37 crore. Here are the KPIs of Dr Agarwals Healthcare:
|
KPI |
Value |
|
RoE (%) |
9.33% |
|
RoCE (%) |
14.61% |
|
RoNW (%) |
6.21 |
|
Price to Book Value |
7.96 |
|
PAT Margin |
6.90 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
3.08 |
2.51 |
|
P/E (x) |
130.44 |
160.48 |
Note: The Pre-IPO EPS is determined using the pre-issue shareholding as of the RHP date and the most recent financial year earnings as of March 31, 2024, as disclosed in the RHP. The Post-Issue EPS is calculated based on the post-issue shareholding and the annualized earnings for the period ending September 30, 2024, as outlined in the RHP.
Dr Agarwals Healthcare IPO Prospectus
Dr Agarwals Healthcare IPO Registrar and Lead Managers
Dr Agarwals Healthcare IPO Lead Managers
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Pvt Limited
- Jefferies India Private Limited
- Motilal Oswal Investment Advisors Limited
Registrar for Dr Agarwals Healthcare IPO
Kfin Technologies Limited
- Contact Number:04067162222, 04079611000
- Email Address: ahcl.ipo@kfintech.com
Dr Agarwals HealthcareIPO Registrar
Financial Performance of Dr Agarwals Healthcare Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 13,321.52 | 10,179.80 |
| Profit After Tax (PAT) (in ₹ million) | 950.51 | 1,032.30 |
| EPS (Earnings per Share in ₹) | 3.14 | 4.01 |
| Total Borrowings (in ₹ million) | 3,877.87 | 3,561.77 |
| Return on equity (%) | 9.33 | 23.12 |
| Return on capital employed (%) | 14.61 | 15.18 |
| EBITDA (₹ in million) | 4,065.55 | 2,838.60 |
| Current Ratio | 1.90 | 1.03 |
Know before investing
Strengths
8India’s largest eye care chain with 25% market share in 2024.
Operates 193 facilities in India across 14 states and 4 union territories.
Comprehensive services including surgeries, consultations, and optical products.
Scalable hub-and-spoke model with 28 hubs and 165 spokes.
Revenue grew 30.86% in FY24 to ₹13,321.52 million.
Delivered 43.22% EBITDA growth, reaching ₹4,065.55 million in FY24.
A strong clinical board ensures consistent outcomes and operational excellence.
Founder and chairperson recognised for pioneering surgical innovations globally.
Risks
8Retainership agreements with doctors lack assurance of continuity, affecting operations.
Failure to attract skilled medical professionals may impact business outcomes.
Negative publicity or brand reputation issues could reduce patient trust.
Non-compliance with safety or regulatory requirements risks business disruption.
Overdependence on facilities in Tamil Nadu, Maharashtra, and Karnataka poses risks.
Exposure to malpractice claims may affect reputation and financial stability.
Hub-and-spoke model expansion challenges may hinder revenue growth potential.
Delays in payments from government or third parties could affect cash flows.
Dr Agarwals Healthcare Limited Peer Details Comparison
| Company Name | Revenue from Operations(₹ in Millions) | Face Value (₹ per share) | P/E Ratio | RoNW (%) |
|---|---|---|---|---|
| Dr Agarwals Healthcare Limited | 13,321.52 | 1 | - | 6.21 |
| Apollo Hospitals Enterprise Limited | 190,592.00 | 5 | 107.11 | 12.97 |
| Max Healthcare Institute Limited | 68,490.00 | 10 | 95.88 | 12.58 |
| Fortis Healthcare Limited | 68,929.20 | 10 | 82.11 | 7.82 |
| Global Health Limited | 32,751.11 | 2 | 57.49 | 16.46 |
| Narayana Hrudayalaya Limited | 50,182.49 | 10 | 33.14 | 27.37 |
| Krishna Institute of Medical Sciences Limited | 24,981.44 | 2 | 79.79 | 16.96 |
| Aster DM Healthcare Limited | 36,989.00 | 10 | 136.07 | 3.63 |
