Dr. Agarwal’s Healthcare IPO- Important dates and process to apply 

Summary

For investors interested in India’s healthcare space, Dr. Agarwal’s Healthcare IPO, which is much-awaited, will start subscriptions on January 29, 2025. This IPO is a combination of a fresh issue of shares and an offer to sell (OFS) of ₹3,027.2 crore, issue size. 

In this insight, you will learn about this offering—size, price band, financials, growth prospects and more.

What is an IPO?

An IPO, or initial public offering, is when a private company first puts its stock on sale to the public and becomes owned by the public. This is a process by which the company is able to bring the capital for growth or debt repayment and the private investors can also realize returns from their investments. 

What is a company’s case for doing an IPO?

An IPO is one for a company to receive the cash they need to expand, start new projects, or pay off debt. It also can improve the company’s reputation, which can be of help in getting better deals from lenders as well as sales. Early investors can also cash out some or all of their shares with an IPO.

Strengths of Dr. Agarwal's Healthcare

1. Market Leadership

According to a report done by CRISIL for FY24, Dr. Agarwal’s Healthcare has 25 percent market share in India’s organized eye care sector. It is this that empowers the company as a primary player in a competitive market.

2. Extensive Network

The company is the largest operator of eye care facilities in India and has a network bigger than any of the listed and unlisted competitors.

3. Comprehensive Services

As a one-stop solution for all kinds of needs for all ophthalmics, Dr. Agarwal's Healthcare is an end-to-end service offering.

4. Asset-Light Model

By using the leased facilities, the hub-and-spoke network requires less upfront capital to invest, while expansion costs are relatively low.

Financial Overview of Dr. Agarwal Healthcare 

Dr. Agarwal's Healthcare has been showing strong financial growth in recent years. 

Here's an insight into its financial performance:

Particulars (₹ crore)	6MFY25	FY24	FY23	FY22
Revenue from Operations	820	1,332	1,018	696
Profit	39.5	95	103.2	43.2

Key Financial Metrics

• Return on Equity (ROE): 9.33%
• Return on Capital Employed (ROCE): 14.61%
• PAT Margin: 6.9%
• Price-to-Book Value: 7.96 (as of March 2024)

The firm has seen consistently rising revenue despite profitability, as shown by sound business fundamentals.

Key Highlights of the IPO

IPO Details	Dr. Agarwal’s Health Care IPO
Face Value	₹1 Per Equity Share
IPO Price Band	₹382 to ₹402 Per Share
Issue Size	Approx. ₹3,027.26 Crores
Fresh Issue	Approx. ₹300 Crores
Offer for Sale	Approx. 6,78,42,284 Equity Shares
Issue Type	Book Built Issue
IPO Listing	BSE & NSE
Retail Quota	Not more than 35%
QIB Quota	Not more than 50%
NII Quota	Not more than 15%

Dr. Agarwal’s Health Care IPO dates

IPO Dates	Dr. Agarwal’s Health Care IPO
IPO Open Date	January 29, 2025
IPO Close Date	January 31, 2025
Basis of Allotment	February 3, 2025
Refunds	February 4, 2025
Credit to Demat Account	February 4, 2025
IPO Listing Date	February 5, 2025

IPO Objectives

Dr. Agarwal's Healthcare aims to utilize the proceeds from the IPO for:

Debt Repayment/Prepayment: Over ₹195 crore will be allotted to reduce borrowings.

Inorganic Acquisitions: They will keep such funds set aside to prepare for potential acquisitions to expand their footprint.

General corporate purposes: Operational enhancements will be made with any remaining funds.

Why Should I Invest in Dr. Agarwal’s Healthcare IPO?

Market Leader: Dr. Agarwal's Healthcare is among the front runners in the "growing" eye care sector, and its scope of growth is certainly going to increase with the awareness and disposable income of people.

Strong Financials: In fact, the company has shown proof of revenue and profit growth.

Scalable Business Model: Under an asset light hub and spoke model, the expansion is cost-efficient.

Risks to Consider

• Regulatory challenges in the healthcare industry.
• Competitive pressures from both organized and unorganized players.
• Expansion risks in unfamiliar territories.

How to Apply for an IPO Online—Via Internet Banking

If you have an active Internet banking account, follow these steps:

• Login with your username and password in your Internet banking.
• After that, click on the ASBA tab and they take you there.
• Next, choose an IPO to apply for, and select the company you want to invest in.
• Enter your PAN and name.
• Enter the amount of shares you’re willing to pay for, as well as the amount you are willing to pay, and then click Submit.

To get it processed on the same day, place to ensure you submit your application before 2 PM on a working day.

How to Apply for an IPO Online—Via Broker

Alternatively, you can apply for an IPO through your broker's online platform:

• Access to their broker’s online account. If you don’t have an account, register with your email and phone number.
• Find the IPO tab on the page and then navigate into the current IPO section. From the list, choose the IPO for which you would like to apply.
• Enter the number of shares (lot size) you would like to bid for and pick what your price is. To improve your chances of catching shares, try bidding at the cutoff price or the top price in the price range.
• Then paste your UPI ID and click the submit button. You will have to approve the transaction with the UPI app.

Just wait for notification in your UPI app. Until the IPO allotment date, your funds will be blocked.

Offline IPO Application Method

If you prefer not to apply online, you can opt for the offline application process:

• Go to a branch of your bank or brokerage firm.
• The ASBA application form must be completed and KYC details must be provided.
• After allotment of shares, the corresponding amount from your account will be debited, and your funds will be blocked in your bank account.

Don’t miss out on the Dr. Agarwwal Healthcare IPO- set reminder at your calendar!