Dr Agarwal’s Health Care IPO to open on January 29: Key things to know from the RHP before you hit subscribe | Stock Market News

Dr Agarwal’s Health Care IPO: Dr Agarwal’s Health Care’s initial public offering (IPO) is scheduled to kick off for subscription on Wednesday, January 29, and will remain open until Friday, January 31. The company aims to raise ₹3,027.26 crore through the offering, which is a combination of a fresh issue of 0.75 crore shares, aggregating to ₹300 crore and an offer for sale of 6.78 crore shares, aggregating to ₹2,727.26 crore.

Dr Agarwal’s Health Care IPO price band is fixed at ₹382 to ₹402 per share. Of the total offering, 50% is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Investors.

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 Agarwal’s Health Care IPO, while Kfin Technologies Limited is the registrar to the issue.

Retail investors can apply for a minimum of 35 shares in one lot and in multiples thereafter. At the upper end of the IPO price band, retail investors are required to make a minimum investment of ₹14,070 per lot.

The company plans to utilise the net proceeds from the fresh issue to address several objectives, including the partial or full repayment or prepayment of specific borrowings, funding general corporate purposes, and supporting potential unidentified inorganic acquisitions.

The allotment of shares for Dr Agarwal’s Health Care IPO is expected to be finalised on Monday, February 3, 2025. The tentative listing on both the BSE and NSE is scheduled for Wednesday, February 5, 2025.

Key things to know from Dr Agarwal’s Health Care’s RHP:

1) About the Firm: Established in 2010, Dr Agarwal’s Health Care is a leading provider of eye care services, offering cataract and refractive surgeries, consultations, diagnostic services, non-surgical treatments, and products like optical accessories, contact lenses, and pharmaceuticals. As of March 31, 2024, the company operated 165 facilities across India and 15 in Africa. By September 30, 2024, the company had served 2.13 million patients, performed 220,523 surgeries, and employed 737 doctors across its network.

2) Market Position: Dr Agarwal’s is India’s largest eye care service provider by revenue for FY23, generating more than double the revenue of the second-largest competitor. With a 25 per cent market share in FY24 and the highest number of facilities, the company has established itself as a leader in the eye care services sector.

3) Financial Performance: The company has shown strong financial growth over the last three years. Revenue from operations rose to ₹13,321.52 million in FY24 from ₹10,179.80 million in FY23 and ₹6,960.78 million in FY22, reflecting growth rates of 30.86 per cent and 46.25 per cent, respectively. EBITDA grew to ₹4,065.55 million in FY24 from ₹2,838.60 million in FY23 and ₹1,998.22 million in FY22, registering robust growth. It also had the highest operating income, PAT, and return on equity among its peers in FY23, according to the CRISIL MI&A Report.

4) Competition: Dr Agarwal’s faces competition from various public and private facilities, including ASG Hospitals, Disha Eye Hospitals, and Eye-Q Vision. The competitive landscape also includes large healthcare providers like Apollo Hospitals and Fortis Healthcare, which operate in overlapping geographies. The firm competes on service quality, affordability, technology, and patient satisfaction.

5) Industry Overview: India’s healthcare delivery sector is expected to grow at a compound annual growth rate (CAGR) of 9-11 per cent over the next four years, driven by structural factors such as lifestyle-related ailments, medical tourism, and rising incomes. The private sector dominates the healthcare market, contributing 69 per cent of treatments by FY28.

6) Eye Care Industry: India has the largest population of visually impaired individuals globally, with one in five experiencing vision disorders. The eye care market, valued at ₹378 billion in FY24, has grown at a CAGR of 11.5 per cent since FY19. Cataract surgeries constitute the largest share of this market, while non-surgical services like diagnostics and follow-ups also contribute significantly.

7) Leadership in Eye Care Services: The company operates a vast network, with 165 facilities in India (spanning 13 states and four union territories) and 15 facilities in nine African countries. Its strategic presence across Tier-I cities and other regions maximises patient reach and strengthens its brand visibility, making it a trusted name in eye care.

8) Expansion Strategy: Dr Agarwal’s plans to expand its footprint in India through its capital-efficient hub-and-spoke model. The company intends to deepen its presence in established clusters like Chennai, Hyderabad, and Bengaluru and explore new micro-markets. Expansion decisions are based on factors such as market growth potential, competition, and the availability of infrastructure and talent.