Dr. Agarwal's Healthcare IPO - Date, Price & GMP Trends

Objectives & Others

The IPO's structure includes a mix of fresh equity shares and an offer for sale. The company intends to use the fresh issue proceeds for debt repayment, general corporate purposes, and potential acquisitions. Retail investors can bid for a minimum of 35 shares in one lot, with a minimum investment of ₹14,070 at the upper end of the price band.

Company Profile

Dr. Agarwal's Health Care is a healthcare provider focused on advanced eye care services, operating under the brand Dr. Agarwal’s Eye Institute. The company offers a range of services, including routine eye check-ups, cataract surgeries, LASIK procedures, retina treatments, and corneal transplants. As of September 2024, the company has a network of 209 facilities, including 16 in Africa and 193 in India, making it the largest among its peers. The company also emphasizes research and development in ophthalmology. In FY24, Dr Agarwal's Healthcare served 2.13 million patients and performed over 220,000 surgeries.

Financials and Market Position

Dr. Agarwal's Healthcare reported a revenue from operations of ₹1,332.15 crore and a net profit of ₹95.05 crore in FY24. The company is considered the largest eye care service provider in India by revenue for FY23. The company has a 25% market share in the organized eye care service market in India for FY24. The revenue grew by 30.86% in FY24, reaching ₹13,321.52 million. The market capitalization of the company is ₹12,698.37 crore.

Industry Outlook

The Indian healthcare delivery market is projected to reach ₹9.1-9.3 trillion by FY28, with a CAGR of 9-11%. The eye care segment is a critical part of this market, valued at ₹378 billion in FY24. This segment is expected to grow at a CAGR of 12-14% to reach ₹550-650 billion by FY28. This growth is driven by factors like increasing per capita income and better health insurance penetration.

Dr. Agarwal's Healthcare IPO GMP Trends

According to Economics Times, the Grey Market Premium (GMP) for Dr. Agarwal Healthcare IPO has seen a declining trend, dropping from around ₹54 on January 24 to around ₹15, indicating a premium of about 4% over the issue price. The high OFS component is considered to be a reason for the reduced demand, as this limits the funds available for the company's growth.

Strengths 

Dr. Agarwal's Healthcare strengths include being India’s largest eye care chain with a significant market share, a comprehensive range of services, and a scalable hub-and-spoke model. The hub-and-spoke model involves central hubs (larger eye hospitals) equipped with advanced diagnostic tools and surgical facilities, while smaller spoke centres (satellite clinics) handle routine eye care, consultations, and initial diagnostics.

Risks

Key risks involve the lack of assurance of continuity with doctor retainer-ship agreements, challenges in attracting skilled medical professionals, and overdependence on facilities in southern India, especially in Tamil Nadu, Karnataka, Telengana and Andhra Pradesh for a significant portion of its operations.

Disclaimer: The GMP (Grey Market Premium) price is unauthenticated market-related news and has no discernible basis. The same quoted above is as per news that appeared in the media report and is for information purposes only. The investor shall do their own study/research before using the same for taking any decision to invest. We neither engage in, trade or deal in the grey market nor do we recommend or endorse trading in the grey market