Dr Agarwal’s Healthcare IPO opens tomorrow: GMP, issue details, 10 key things to know

TPG and Temasek-backed Dr Agarwal’s Healthcare IPO opens for subscription on tomorrow (Wednesday, January 29). The company offers a comprehensive range of eye care services, including cataract and refractive surgeries, consultations, diagnoses, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care pharmaceuticals. According to the CRISIL MI&A Report for Financial Year 2024, the firm held approximately 25% of the total eye care service market share in India.

With a strong operational history, the company is committed to meeting all the needs of its patients throughout their eye treatment journey. As of September 30, 2024, the company’s network consisted of 209 facilities. The CRISIL MI&A Report also highlighted that the firm had the highest number of eye care service facilities in India compared to its listed and unlisted peers at that time.

As per the red herring prospectus (RHP), among the company's publicly listed competitors, Apollo Hospitals Enterprise has a P/E of 107.11, Max Healthcare Institute has a P/E of 95.88, Fortis Healthcare shows a P/E of 82.11, Global Health indicates a P/E of 57.49, Narayana Hrudayalaya presents a P/E of 33.14, Krishna Institute of Medical Sciences reports a P/E of 79.79, Aster DM Healthcare boasts a P/E of 136.07, and Rainbow Children's Medicare indicates a P/E of 67.90.

With 165 facilities located in India and 15 internationally (including 9 in Africa), the Tamil Nadu-based firm offers a range of eye care services such as cataract and refractive surgeries, in addition to selling optical products, contact lenses, accessories, and pharmaceuticals related to eye care. As of fiscal 2024, it held around 25% of the overall eye care service market share in India.

The eye care sector in India is anticipated to expand at a compound annual growth rate (CAGR) of 12-14% from FY24 through FY28. The Indian eye care services market was valued at roughly ₹37,800 crore in fiscal 2024 and is expected to reach between ₹55,000 and ₹65,000 crore by FY28, according to draft documents from Dr Agarwal's Healthcare.

Here are the 10 key things to know about Dr Agarwal’s Healthcare IPO

Dr Agarwal Healthcare IPO date: Dr Agarwal IPO opens for subscription on Wednesday, January 29, and closes on Friday, January 31.

Dr Agarwal Healthcare IPO price band: Dr Agarwal IPO price band has been fixed in the range of ₹382 to ₹402 per equity share of face value of Re 1.

Dr Agarwal Healthcare IPO lot size: Dr Agarwal IPO lot size is 35 equity shares and in multiples of 35 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Dr Agarwal IPO is scheduled to take place today (Tuesday, January 28).

Dr Agarwal Healthcare IPO details: Dr. Agarwal’s Healthcare IPO comprises a fresh equity share issuance of ₹300 crore, along with a sell-off of 6.78 crore shares amounting to ₹2,727.3 crore from current stakeholders.

In addition to the promoters, the stakeholders involved in the sell-off include Arvon Investments Pte and Claymore Investments Mauritius Pte, both associated with the private equity firm Temasek Holdings, and Hyperion Investments Pte, linked to the US private equity firm TPG.

Public shareholders are represented by Arvon Investments Pte, which holds a 12.44% share, Claymore Investments Mauritius Pte, which has a 15.71% stake, and Hyperion Investments Pte, owning a 33.70% interest, while the promoters maintain control over 37.73% of the company.

Dr Agarwal Healthcare IPO objective: From the net proceeds of the new offering, the company aims to allocate ₹195 crore towards debt repayment. The remaining funds will also be directed towards unannounced inorganic acquisitions and general business requirements.

Dr Agarwal Healthcare IPO listing date and allotment details: Tentatively, Dr Agarwal's Healthcare IPO basis of allotment of shares will be finalised on Monday, February 3, and the company will initiate refunds on Tuesday, February 4, while the shares will be credited to the demat account of allottees on the same day following refund. Dr Agarwal's Healthcare share price is likely to be listed on BSE and NSE on Wednesday, February 5.

Lead Manager and Registrar of Dr Agarwal Healthcare IPO: The main book-running lead managers for Dr Agarwal IPO are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited. Kfin Technologies Limited serves as the registrar for the issue.

Dr Agarwal Healthcare IPO reservation: Dr Agarwal IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 1,579,399 equity shares, and the shareholders have been reserved up to 1,129,574.

Dr Agarwal Healthcare IPO GMP today: Dr Agarwal IPO GMP today is +13. This indicates Dr Agarwal Healthcare share price was trading at a premium of ₹13 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Dr Agarwal Healthcare share price is indicated at ₹415 apiece, which is 3.23% higher than the IPO price of ₹402.

Today's IPO GMP is pointing lower and is predicted to decline further based on grey market activity over the last five sessions. According to experts on investorgain.com, the lowest GMP is ₹13, and the highest is ₹54.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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