Dr. Agarwal's Healthcare sets price band at ₹382-402 for its ₹3,027 cr IPO; check GMP, other details

Eye care services provider Dr. Agarwal's Healthcare, backed by private equity firms TPG and Temase, on Friday unveiled price band for its upcoming initial public offering (IPO). The healthcare firm has fixed price band in the range of ₹382 to ₹402 per equity share, which will open for subscription on January 29, 2025. The anchor book will open for a day on January 28 and the issue will close on January 31. The tentative date for listing of stock on the BSE and NSE is February 5, 2025.

The company has already started creating buzz in the unlisted market, with shares commanding grey market premium (GMP) of ₹164 over the issue price. It is still very early to determine the trend as GMP is subject to change in the future subject to market conditions.  

The Chennai-based company looks to raise ₹3,027 crore at a market value of ₹12,698 crore at the upper end of the price band. The firm, which filed its IPO papers with the SEBI on September 27 and received approval early this month, holds a 71.9% stake in subsidiary Dr Agarwal's Eye Hospital, which is listed on the stock exchange.

Ahead of the IPO, the company raised ₹1,050 crore from TPG Growth, Texas Pacific Group, and from existing investor Temasek, in India’s largest fund raise in the eye care space.

Here’s all you need to know about Dr. Agarwal's Healthcare IPO:

The IPO is a mix of a fresh issue of 0.75 crore equity shares worth ₹300 crore and offer for sale of 6.78 crore shares amounting to ₹2,727.26 crore by the promoter and other selling shareholders.

The promoters, including chairman Dr. Amar Agarwal, currently holds 37.72% stake in the company, while the remaining shares are owned by public shareholders including Hyperion Investments Pte (33.70%), Claymore Investments Mauritius Pte (15.71%), and Arvon Investments Pte (12.44%).

Out of the ₹300 crore proposed equity issue, the company intends to use ₹195 crore for repayment of its certain borrowings, while remaining capital will be used for general corporate purposes, and unidentified inorganic acquisition.

As per the IPO document filed with the capital market regulator SEBI, the company has reserved half of the issue for qualified institutional buyers, 15% for non institutional investors and remaining 35% for retail investors. The offer also includes a subscription reservation for eligible employees.

The lot size is 35 shares and in multiple thereafter, and the minimum application amount for retail investor is ₹14,070 for one lot.

Established in 2010, Dr. Agarwal's Health Care, under the leadership of Dr. Amar Agarwal, who has over 35 years of experience in the eye care sector, offers a comprehensive range of eye care services, including cataract and refractive surgeries, with the support of 737 doctors as on September 30, 2024. In the six months leading up to September 30, 2024, the company served 1.15 million patients and conducted 140,787 surgeries, while they overall served 2.13 million patients and performed 220,523 surgeries. 

According to a CRISIL MI&A Report cited in its DRHP, the company held about 25% of the total eye care service chain market in India during the financial year 2023-24. It compares with are ASG Hospitals and New Delhi Centre for Sight with respect to geographic presence across India and Internationally.

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