Dr. Agarwal's Health Care shares make a flat debut, list at IPO price of ₹402 on NSE

Dr. Agarwal's Health Care IPO listing: Dr. Agarwal's Health Care shares made a muted debut on Tuesday, February 4, listing at ₹402 on NSE, same as the initial public offering (IPO) price. Meanwhile, on BSE, the stock listed at ₹396.90, down 1.27 per cent from the issue price.

Dr. Agarwal's Health Care's IPO, valued at ₹3,027.26 crore, was open for subscription from January 29 to January 31. The IPO price band was fixed at ₹382-402 per equity share.

Following the three days of bidding, Dr. Agarwal's Health Care IPO closed with strong demand, garnering 1.49 times bids. The IPO received bids for 7.98 crore shares against 5.35 crore shares on offer. The retail investor segment failed to sail through, garnering just 0.42 times bids. At the same time, the non-institutional investors (NII) category was also not completely subscribed, ending the three-day IPO period with 0.39 times bids. Meanwhile, the Qualified Institutional Buyers quota was bid 4.41 times. The employee and others quota was also not completely bid, witnessing subscriptions of 0.26 times and 0.51 times, respectively.

About the IPO

Dr. Agarwal's Health Care IPO was a combination of fresh issue of 0.75 crore shares aggregating to ₹300 crore and offer for sale of 6.78 crore shares aggregating to ₹2,727.26 crore. Retail investors could apply with a minimum lot size of 35 shares, requiring a minimum investment of ₹14,070.

Dr. Agarwals Healthcare raised ₹875.51 crore from anchor investors ahead of the IPO on January 28, 2024.

The company plans to utilise the net proceeds from the fresh issue for multiple objectives, including the repayment or prepayment, either in part or full, of certain borrowings. Additionally, the funds will be allocated towards general corporate purposes and potential unidentified inorganic acquisitions.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers of the Dr Agarwals Healthcare IPO, while Kfin Technologies Limited is the registrar for the issue.

About the Company

Dr. Agarwal's Health Care Limited, established in 2010, provides a wide spectrum of eye care services, including cataract and refractive surgeries, consultations, diagnostics, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and pharmaceutical items related to eye care.

As of September 30, 2024, the company had a team of 737 doctors catering to patients across its facilities. During this period, it attended to 2.13 million patients and performed 220,523 surgeries. In the first half of the fiscal year ending September 30, 2024, the company served 1.15 million patients and carried out 140,787 surgeries.

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