Dr. Agarwal’s Health Care Shares List at 1.2% Discount Amid Weak Investor Sentiment and Market Response

Dr. Agarwal’s Health Care made a lackluster stock market debut, listing at ₹396.90 on the BSE, a 1.2% discount from its IPO price of ₹402. The IPO saw weak demand from retail and non-institutional investors, with only 1.55x overall subscription, mainly driven by QIBs (4.64x). Analysts attribute the tepid response to high valuations, lower profitability, and a major promoter exit through the offer-for-sale (OFS).

CONTENTS:

• Dr. Agarwal’s Health Care’s Muted Market Debut and Industry Outlook
• Dr. Agarwal’s Health Care IPO Allotment: How to Check Status Online on KFin Technologies, NSE, and BSE
• Dr. Agarwal’s Health Care Shares List at a Discount in Market Debut

Dr. Agarwal’s Health Care Shares List at 1.2% Discount Amid Weak Investor Sentiment and Market Response

Dr. Agarwal’s Health Care’s Muted Market Debut and Industry Outlook

Dr. Agarwal’s Health Care Shares List at 1.2% Discount Dr. Agarwal’s Health Care had a lackluster debut on the stock market, listing at ₹396.90 on the BSE, which is about 1.2% lower than its IPO issue price of ₹402. On the NSE, the stock opened at ₹402, matching the issue price.

Ahead of its listing, the company’s shares showed no grey market premium (GMP), reflecting weak investor sentiment, high valuation concerns, lower profitability, and a major promoter exit through the offer-for-sale (OFS). Analysts had anticipated a flat to slightly negative debut due to these factors.

Market experts, including Prashanth Tapse from Mehta Equities, cited weak market conditions as a key reason for the IPO’s tepid response. He advised non-allotted investors to adopt a wait-and-watch approach, while long-term investors may consider holding their shares. Sagar Shetty from StoxBox recommended avoiding the stock for now, pending a reassessment based on future financial performance.

The IPO was subscribed 1.55 times overall, with Qualified Institutional Buyers (QIBs) showing the most interest at 4.64 times subscription. However, demand from retail investors (41% subscription) and non-institutional investors (39%) remained weak.

Dr. Agarwal’s Health Care set its IPO price range at ₹382-₹402 per share. The offering comprised a fresh issue of ₹300 crore in equity shares and an OFS of 6.95 crore shares by promoters and investors. The company plans to use ₹195 crore from the fresh issue proceeds to repay debt, with the remainder allocated for corporate needs and inorganic expansion.

Operating a network of 165 facilities in India and 15 internationally (including 9 in Africa), the Tamil Nadu-based firm specializes in eye care services, including cataract and refractive surgeries, as well as selling optical products and pharmaceuticals. It holds around 25% market share in India’s eye care service chain.

As of September 30, 2024, Dr. Agarwal’s Health Care employed 737 doctors and served 2.13 million patients, performing over 220,523 surgeries. In the first half of FY25, the company treated 1.15 million patients and conducted 140,787 surgeries.

The Indian eye care industry is projected to expand at a CAGR of 12-14% from FY24 to FY28, with market size expected to grow from ₹37,800 crore in FY24 to ₹55,000-65,000 crore by FY28.

Dr. Agarwal’s Health Care IPO Allotment: How to Check Status Online on KFin Technologies, NSE, and BSE

Dr. Agarwal’s Health Care Shares List at 1.2% Discount The allotment status for Dr. Agarwal’s Health Care IPO is set to be finalized on Monday, February 3. Investors can check their allotment details via the KFin Technologies portal, as well as on the NSE and BSE websites.

Subscription Details

The IPO was fully subscribed by the closing date on January 31, with a total subscription of 1.55 times.

• Qualified Institutional Buyers (QIBs): Subscribed 4.64 times, bidding for 6,73,61,280 shares against an allotment of 1,45,19,200 shares.
• Non-Institutional Investors (NIIs): Subscribed 40%, with 43,07,310 shares applied for out of 1,08,89,400 shares available.
• Retail Individual Investors (RIIs): Subscribed 41%, applying for 1,05,40,285 shares against an allocation of 2,54,08,599 shares.
• Employee Quota: Subscribed 27%, with 4,25,565 shares bid for out of 15,79,399 shares on offer.

How to Check Dr. Agarwal’s Health Care IPO Allotment Status

On KFin Technologies Portal

1. Visit: KFinTech IPO Allotment Status
2. Select ‘Dr Agarwal’s Healthcare Ltd’ from the dropdown menu.
3. Enter PAN, Application Number, DP ID, or Account Number.
4. Complete verification and click Submit.

On NSE Portal

1. Visit: NSE IPO Bid Verification
2. Select ‘Dr Agarwal’s Health Care Ltd’.
3. Enter Application Number and PAN.
4. Click Submit.

On BSE Portal

1. Visit: BSE IPO Allotment Status
2. Set ‘Issue Type’ as ‘Equity’.
3. Choose ‘Dr Agarwal’s Health Care Ltd’ from the IPO list.
4. Enter PAN or Application Number.
5. Click Submit.

IPO Listing Date and Price Details

Dr. Agarwal’s Health Care shares are scheduled to be listed on the NSE and BSE on Wednesday, February 5, at 10 AM.

• Total IPO Size: ₹3,027.26 crore
• Fresh Issue: ₹300 crore
• Offer-for-Sale (OFS): ₹2,727.26 crore
• Price Band: ₹382-₹402 per share
• Minimum Investment: ₹14,070 for a lot of 35 shares

About Dr. Agarwal’s Health Care

Dr. Agarwal’s Health Care Shares List at 1.2% Discount The company provides eye care services, including cataract and refractive surgeries, diagnostics, non-surgical treatments, and the sale of optical products.

Dr. Agarwal’s Health Care reported a revenue of ₹696.08 crore with a net profit of ₹43.16 crore in FY22. In FY23, revenue increased to ₹1,017.98 crore, and net profit rose to ₹103.23 crore. FY24 saw further growth, with revenue reaching ₹1,332.15 crore, though net profit declined to ₹95.05 crore. For the first half of FY25, the company recorded ₹820.06 crore in revenue and a net profit of ₹39.56 crore.

Lead Managers for the IPO

The issue was managed by Kotak Mahindra Capital Company, Jefferies India, Motilal Oswal Investment Advisors, and Morgan Stanley India Company.

For more details on IPO listings, upcoming public issues, and market updates, stay tuned.

Dr. Agarwal’s Health Care Shares List at a Discount in Market Debut

Shares of Dr. Agarwal’s Health Care Ltd had a subdued entry into the stock market on Tuesday, February 4, 2025, debuting at ₹396.90 on the BSE, reflecting a 1.27% discount from the issue price of ₹402 per share. The stock initially opened at par with the issue price before experiencing a slight dip.

IPO Subscription and Market Response

The IPO, which was open for bidding from January 29 to January 31, had a price band of ₹382-₹402 per share and a minimum lot size of 35 shares. The company raised ₹3,027.26 crore, comprising ₹300 crore from fresh issue and an offer-for-sale (OFS) of up to 6,78,42,284 equity shares.

The overall subscription stood at 1.55 times, primarily driven by Qualified Institutional Buyers (QIBs), who subscribed 4.64 times their allotted quota. However, other investor categories showed weaker demand:

• Non-Institutional Investors (NIIs): 40% subscription
• Retail Individual Investors (RIIs): 41% subscription
• Employees: 27% subscription
• Shareholders: 52% subscription

Grey Market and Listing Performance

Before the listing, Dr. Agarwal’s shares were trading at a discount of ₹5 in the grey market, a sharp decline from the earlier ₹65 premium seen before the bidding began. This indicated subdued market sentiment, aligning with the stock’s lackluster debut.

About Dr. Agarwal’s Health Care

Dr. Agarwal’s Health Care Shares List at 1.2% Discount: Founded in 2010, the Chennai-based Dr. Agarwal’s Health Care provides a comprehensive range of eye care services, including:

• Cataract and refractive surgeries
• Consultations and diagnostics
• Non-surgical treatments
• Optical products, contact lenses, accessories, and pharmaceutical items related to eye care

Brokerage and Market Outlook

Dr. Agarwal’s Health Care Shares List at 1.2% Discount : Brokerages had a mixed outlook on the IPO. The issue was managed by Kotak Mahindra Capital Company, Morgan Stanley India, Jefferies India, and Motilal Oswal Investment Advisors, with KFin Technologies serving as the registrar.