Dr. Agarwal’s Health Care IPO saw a slow start with muted demand from retail and institutional investors. The company raised Rs 3,027 crore through the IPO, with its shares trading at a 3% premium in the grey market.
The initial public offering (IPO) of Dr. Agarwal’s Health Care, India’s largest eye care hospital chain by revenue, received a lackluster response on its first day of bidding. As of January 29, the IPO had garnered bids for 38.09 lakh shares, against the offer of 5.35 crore shares, according to data available on the National Stock Exchange (NSE).
Dr. Agarwal’s Health Care is well-known for its extensive network of eye care hospitals across India, providing a wide range of services in ophthalmology. With a legacy of over 60 years in the healthcare industry, the company has grown to become the largest eye care hospital chain by revenue in the country. The IPO aims to raise Rs 3,027 crore, which includes a fresh issue of shares worth Rs 300 crore and an offer-for-sale of 6.78 crore shares worth Rs 2,727.26 crore by existing shareholders.
The IPO has faced tepid demand, with retail investor subscriptions at just 11 percent and non-institutional investor subscriptions at only 6 percent. Qualified Institutional Buyers (QIBs) have yet to make substantial bids. The IPO, which is priced between Rs 382 and Rs 402 per share, will remain open for subscription until January 31, 2025.
In terms of market response, the unlisted shares of the company were trading at a grey market premium of nearly 3 percent, priced at Rs 414, according to Investorgain. This indicates that the market expects a modest listing premium, though demand for the IPO has not yet been strong.
The company had previously raised Rs 875.5 crore through its anchor book on January 28, with investments from several marquee names, including Goldman Sachs, Morgan Stanley, the Government of Singapore, and HSBC Global, among others.
Dr. Agarwal’s Health Care has also announced plans to initiate a merger with its listed subsidiary, Dr. Agarwal’s Eye Hospital, immediately after the IPO listing. The company aims to complete the merger process within 12 months, further strengthening its presence in the market.
The allotment results are expected to be announced on February 3, 2025.
