Dr. Agarwal’s Health Care Limited is set to launch its initial public offering (IPO) from January 29 to January 31, 2025, with an aim to raise approximately ₹3,027.26 crores. The IPO will consist of a fresh issue of equity shares priced between ₹382 and ₹402 each, with a face value of ₹1. As a leading provider of eye care services in India, Dr. Agarwal’s operates a vast network of facilities and offers a comprehensive range of treatments, including cataract and refractive surgeries.
₹5
₹402
₹402.00
Expert Opinions
Market sentiment for the Dr Agarwals Healthcare IPO is highly positive, driven by strong demand for healthcare services and the company’s established reputation in the eye care sector. Dr. Agarwal’s operates 193 facilities across 117 cities, showcasing a vast network and extensive experience in providing comprehensive eye care services, which enhances its market position. However, risks include dependency on income from surgeries, which constitutes a significant portion of revenue, and potential reputational damage from negative publicity that could impact patient trust.
The IPO valuation reflects a price-to-earnings (P/E) ratio of approximately 222.10, indicating a premium valuation compared to industry peers, which could be justified by its growth prospects. From a long-term investment perspective, Dr. Agarwal’s Healthcare is well-positioned to benefit from increasing healthcare spending and expanding its service offerings.
Investor Considerations
Investors considering the Dr Agarwals Healthcare IPO should evaluate several key factors. Company performance and fundamentals indicate strong growth, with revenues significantly driven by surgical procedures, which accounted for 64.20% of total revenue in FY2024. The sector outlook is promising, as the demand for eye care services continues to rise due to increasing awareness and aging populations.
The IPO valuation reflects a return on net worth (RoNW) of approximately 6.21%, showcasing robust profitability metrics. Growth prospects remain strong, with plans to expand facilities and enhance service offerings, positioning the company well in the competitive healthcare landscape. However, potential risk factors include high dependency on surgical income and brand reputation, which could impact financial stability. A long-term investment horizon is advisable as Dr. Agarwal’s aims to leverage growth opportunities in the expanding healthcare sector, making it a compelling choice for investors seeking exposure in this field.
| Date | GMP | Trend |
|---|---|---|
| 04 Feb 2025 11.34 | ₹5 | --- |
| 03 Feb 2025 11.22 | ₹5 | --- |
| 02 Feb 2025 15.58 | ₹5 | --- |
| 01 Feb 2025 11.50 | ₹5 | --- |
| 31 Jan 2025 10.38 | ₹5 | --- |
| 30 Jan 2025 17.58 | ₹5 | --- |
| 29 Jan 2025 17.49 | ₹5 | Down |
| 28 Jan 2025 10.52 | ₹15 | --- |
| 27 Jan 2025 13.26 | ₹15 | Down |
| 25 Jan 2025 11.37 | ₹50 | --- |
| 24 Jan 2025 18.59 | ₹50 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Dr Agarwals Healthcare’s listing performance. While the GMP of ₹5 predicted a small premium of 1.24% over the issue price, the stock listed flat with no gains or losses. With a small prediction error of 1.23%, the GMP correctly indicated weak market enthusiasm, though it slightly overestimated by predicting a marginal gain instead of the flat listing that occurred.
Dr Agarwals Healthcare IPO Current GMP is ₹5.
Dr Agarwals Healthcare IPO Expected Returns is 1.24%.
Dr Agarwals Healthcare IPO estimated listing price is ₹407.