Dr. Agarwal’s Health Care Limited offers a comprehensive range of eye care services, including cataract and refractive surgeries, consultations, diagnoses, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care-related pharmaceutical items. Dr Agarwals Healthcare IPO looks to raise Rs 3,027.26 crores. The issue is a combination of fresh issue aggregating to Rs 300 crores and offer for sale aggregating to Rs 2,727.26 crores..
| IPO opens | January 29, 2025 |
| IPO Closes | January 31, 2025 |
| IPO Size (Rs.) | ₹ ₹3,027.26 Cr |
| Breakup | Fresh issue ₹ 300.00 Cr + OFS ₹2,727.26 Cr |
| Face Value: | ₹ 1 |
| IPO Price in Rs : | ₹382 to ₹402 per share |
| Minimum Lot | 35 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| BRLM | :Kotak Mahindra Capital, Morgan Stanley India, Jefferies India, Motilal Oswal |
| Registrar | KFin Technologies |
About Dr Agarwals Healthcare
- Dr. Agarwal’s Healthcare is a major player in the Indian eye care sector, providing a comprehensive range of services including cataract surgeries, LASIK procedures, and other eye treatments.
- As of September 2024, it operates 209 facilities globally, including 193 in India and 16 in Africa, serving over 2.13 million patients and performing more than 220,000 surgeries in FY24
- Ss of September 30, 2024, they operated the highest number of eye care facilities in India among listed and unlisted peers, with a network of 209 facilities.
Financials : Dr Agarwals Healthcare IPO
| Particulars / Rs Cr. | 2024 (6) | 2023 (6) | 2024 (12) | 2023(12) | 2022(12) |
| Revenue from Operations | 820.06 | 650.58 | 1332.15 | 1017.98 | 696.08 |
| Revenue Growth (%) | 26.05% | – | 30.86% | 46.25% | – |
| EBITDA | 228.48 | 178.32 | 406.56 | 283.86 | 199.82 |
| EBITDA Margin (%) | 27.27% | 26.91% | 29.54% | 27.52% | 27.99% |
| Net Profit | 39.56 | 31.13 | 95.05 | 103.23 | 43.16 |
| Net Profit (%) | 4.72% | 4.70% | 6.91% | 10.01% | 6.05% |
| Total Borrowings | 373.68 | 394.69 | 387.79 | 356.18 | 290.18 |
| Net Worth | 1,502.67 | 1,286.93 | 1,337.68 | 627.83 | 212.34 |
| Net Debt / EBITDA | 3.74 | 4.32 | 2.07 | 2.5 | 2.59 |
| Post issue Share Capital | 31.59 | ||||
| FV | 1 | ||||
| IPO price | 402 | ||||
| EPS Fy24 | 3.01 | ||||
| PE | 133.61 | ||||
| EPS Fy25 (annualized) | 2.50 | ||||
| PE (annualized) | 160.51 | ||||
| Market cap in cr. | 12699 | ||||
| Market cap / Sales | 9.53 |
Anchors: Dr Agarwals Healthcare IPO
- Major Anchor Investors::
- Government of Singapore
- Monetary Authority of Singapore
- Government Pension Fund Global
- Invesco India Midcap Fund
- Fidelity
- The Nomura Trust
- Ashoka Whiteoak Mutual Fund
- Motilal Oswal Small Cap Fund
- Canara Robeco Mutual Fund
Salient Points: Dr Agarwals Healthcare IPO
- The company is well-positioned for growth within the expanding healthcare market in India, which is expected to reach ₹9.1-9.3 trillion by FY28.
- They have nearly 25% market share in its business of eye-care related services.
- Use of Net proceeds: Fresh Issue is small and out of Rs. 300 cr from it will be used to repay Rs. 195 cr debt.
- OFS of Rs. 2,727 cr out of which 80% by the PE investors Temasek and TPG ( and 20% OFS by the promoters.
- Post the IPO promoters 38% stake to shrink to 32%.
- Revenue Breakup :
- Service Portfolio – 64% of FY24 revenue
- Surgeries
- Cataract surgeries
- Refractive & other surgeries
- Consultations, diagnoses, and other non-surgical treatments
- Product Portfolio
- Sale of opticals, contact lenses, tc (13% )
- Sale of eye care-related pharmaceutical products. (8%)
- Service Portfolio – 64% of FY24 revenue
- The company aims to grow through organic expansion by establishing new facilities, deepening its presence in existing clusters, and targeting underserved regions.
- The Company is the holding company of Dr. Agarwal Clinic with a 71.5% stake.
- Of its 193 facilities in India, 70 are situated in Tamil Nadu, creating a heavy reliance on a one state.
- Peers: The valuation compared to major Hospital chains looks expensive. A smaller company Lotus Eye Hospital & Institute Ltd which operates mainly in Tamil Nādu is commanding a PE of 96.
- PE FY25 (annualized): 160 x ; PE Fy24 – 133 x
- It is expected that second half is generally better compared to first half in ratio of 40:60.
- Company is debt free.
- I do not intend to apply in Dr Agarwals Healthcare IPO.. Valuation being demanded are on the higher side. Their subsidiary Dr. Agarwal’s Eye Hospital is already listed and contributed 70% of its parents H1FY25 PAT. It trades at a PE multiple of 41x.
- Company plans to merge the subsidiary with itself in the next 12 months.
- GMP as per social media has been coming down.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.