Dr Agarwal’s IPO Lists at Discount

Dr Agarwal’s Health Care Shares List at Discount

Shares of Dr Agarwal’s Health Care Ltd. saw a subdued listing on the stock market today. The shares closed at Rs 400.8 apiece on the BSE, a slight 0.29% discount to the initial public offering (IPO) price of Rs 402. On the National Stock Exchange (NSE), the closing price was Rs 401, also a small discount of 0.24% from the IPO price. The shares debuted at a 1.2% discount on the BSE and opened flat on the NSE.

IPO Details and Subscription

The Rs 3,027.3-crore IPO saw a subscription rate of just 1.49% on its final day. Qualified institutional buyers were the primary drivers of this subscription. However, non-institutional buyers, retail investors, and employees didn’t fully subscribe to their allocated portions. The IPO comprised a fresh issue of shares worth Rs 300 crore and an offer-for-sale (OFS) component of Rs 2,727.3 crore. The company plans to use Rs 195 crore from the proceeds to repay borrowings. The remaining funds will go towards general corporate needs and possible acquisitions.

Promoter Stake Sale

A significant part of the IPO involved promoters selling their shares. Promoters like Amar Agarwal, Athiya Agarwal, Adil Agarwal, Anosh Agarwal, and Ashvin Agarwal offered a part of their holdings in the OFS. Dr. Agarwal’s Eye Institute, also a promoter, participated in the share sale.

About Dr Agarwal’s Health Care

Dr Agarwal’s Health Care is a leading eye care service provider in India, with a market share of about 25%. They offer a wide range of eye care services. These include cataract surgeries, refractive surgeries, consultations, diagnoses, non-surgical treatments, and the sale of optical products and medicines. As of September 30, 2024, the company operates 209 facilities across India. They provide a complete range of eye care services. This [[IPO]] marks an important step for the company, though the market debut was less enthusiastic than expected. Kotak Mahindra Capital Co., Morgan Stanley India Co., Jefferies India Pvt. and Motilal Oswal Investment Advisors managed the IPO, with KFin Technologies Ltd. as the registrar.

Market Analysis and Future Outlook

The lukewarm response to the IPO might reflect current market sentiment. Several expert analysis had weighed in on the IPO previously. While the company holds a significant market share in the eye care sector, the subscription numbers suggest investors are cautious. The company’s future performance and the stock’s market trajectory will be watched closely in the coming months. The utilization of funds for debt repayment and general corporate purposes signals a focus on financial stability and growth.

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