Dr Agarwal's Healthcare IPO subscribed 6% so far on Day 1: Check GMP, price band and other details

The initial public offering (IPO) of leading eyecare service provider Dr. Agarwal's Healthcare opened for subscription on Wednesday, with an overall subscription of 6% as of 02:40 pm on the first day of bidding. The issue, which has a significant offer for sale (OFS) component worth Rs 2,727 crore out of the total offering of Rs 3,027 crore, will be available for investors to bid until January 31.

The retail portion of the issue was subscribed 9%, while the non-institutional investors category saw a 4% subscription on the second day of bidding. Meanwhile, qualified institutional buyers had not made any bids yet.

Dr. Agarwal's Healthcare IPO GMP on Day 1

Ahead of its listing, the company's shares were trading at a Grey Market Premium (GMP) of Rs 8 in the unlisted market on Wednesday, reflecting a 2% premium over the upper end of the IPO price band of Rs 402. The GMP for Dr. Agarwal's Healthcare has declined from Rs 12 earlier to Rs 8 on Wednesday.

Dr. Agarwal's Healthcare IPO Price Band

Dr. Agarwal's Healthcare IPO is available to investors within a price range of Rs 382-402 per share. Bids can be placed for a minimum of one lot, and in multiples thereafter, with each lot consisting of 35 shares.

Dr. Agarwal's Healthcare IPO Review: What Analysts Say?

Despite a significant offer for sale (OFS) component and premium valuation, analysts have recommended subscribing to the IPO for long-term investment.
At the upper price band, the company is valued at 134 times its FY24 earnings per share (EPS). Post-IPO, its market capitalization is expected to be approximately Rs 12,698 crore based on FY24 earnings.

"The company holds around 25% of its market share in the eye care services industry. We believe the issue is richly priced and recommend a 'Subscribe – Long Term' rating for the IPO," said Anand Rathi in a note.

Dr. Agarwal's Healthcare IPO Details

Dr. Agarwal's Healthcare offers a comprehensive range of eye care services, including cataract and refractive surgeries, consultations, diagnostics, non-surgical treatments, as well as the sale of optical products, contact lenses, accessories, and eye care pharmaceuticals.

In FY24, the company held a 25% share of India's total eye care services market, serving 2.13 million patients and performing 220,523 surgeries.

Its operations follow a hub-and-spoke model, creating a scalable and accessible platform for sustained business growth. As of September 2024, its network in India comprised 28 hubs and 165 spokes.

According to a CRISIL report, the Indian eye care industry is expected to grow at a CAGR of 12%-14% from FY24 to FY28, presenting the company with significant opportunities for innovation and expansion.

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