Dr Agarwal’s Health Care share price slumps over 5% as lock-in period ends

Dr Agarwal's Health Care share price dropped by more than 5% during Monday's trading session, coinciding with the end of the 30-day anchor lock-in period today (March 3, 2025). Dr Agarwal's Health Care share price today opened at ₹384.95 apiece on the BSE, the stock touched an intraday low of ₹381 apiece, and an intraday high of ₹397.20 per share.

According to the red herring prospectus (RHP), it states that 50% of the equity shares allocated to anchor investors will have a lock-in period of 90 days starting from the date of allotment, while the remaining 50% will be subject to a lock-in period of 30 days from the date of allotment.

Dr Agarwal's Health Care was listed on the stock exchanges on February 4, 2025, after successfully completing its initial public offering (IPO). The stock debuted at ₹396.9 on the BSE, which represented a decline of ₹5.1 or 1.27 percent from its IPO price of ₹402. On the NSE, the company's shares opened flat at ₹402, matching the IPO price.

Dr Agarwal's Health Care IPO comprised a fresh issue of up to ₹300 crore alongside an Offer For Sale (OFS) of up to 6.78 crore equity shares valued at ₹2,727.26 crore by promoters and other selling stakeholders at the highest end of the price range.

Funds raised from the fresh issue, amounting to ₹195 crore, will be allocated for debt repayment. Additionally, a portion will be allocated for general corporate needs and unspecified acquisitions.

Dr Agarwal's Health Care provides a comprehensive range of services, including cataract and refractive surgeries, consultations, diagnoses, non-surgical treatments, as well as the sale of optical products, contact lenses, accessories, and pharmaceutical items related to eye care.

By September 2024, the company operated 193 facilities, primarily located in South India, with key concentrations in Chennai, Hyderabad, and Bengaluru, and some presence in Western India. The initial public offer of Dr Agarwal’s Health Care Ltd was subscribed 1.55 times by the closing day of bidding on Friday. The public issue has set a price range of ₹382-402 per share.

Q3 Results

On February 15, Dr Agarwal's Health Care Ltd reported a consolidated profit after tax of ₹28.24 crore for the quarter from October to December 2024, according to the company.

The eye care provider, based in the city, reported a profit after tax of ₹22.59 crore during the same quarter of the previous financial year.

For the nine-month period ending December 31, 2024, the company recorded a profit after tax of ₹67.79 crore, compared to ₹53.73 crore earned during the same period last year.

"We have delivered a robust growth of 29.5 per cent in revenue and 26.3 per cent in EBITDA. We have continued to witness strong growth in both patient footfalls and the number of surgeries performed," said Dr Adil Agarwal, CEO of Dr Agarwal's Health Care Ltd.

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