Dr. Agarwal’s Health Care, India’s largest eye care services provider, is set to launch its IPO, aiming to raise over ₹3,027.26 crore. With a strong market presence, expanding international footprint, and robust financial growth, investors are closely eyeing this offering. Here’s a deep dive into all the essential details to help you make an informed decision.
Also read: Arisinfra Solutions IPO: Full Details and Key Information
About Dr. Agarwal’s Health Care
History and growth of the company
Founded in 1957, Dr. Agarwal’s Health Care has established itself as a leader in the eye care sector, with a 25% market share in India’s organized eye care market. The company operates 209 facilities, including 193 in India and 16 internationally, across 117 cities in 14 Indian states, four union territories, and nine African countries. With over 2.13 million patients served annually, the company has demonstrated strong scalability.
Why is the company going public?
Dr. Agarwal’s Health Care aims to leverage the IPO proceeds for strategic expansion, debt repayment, and potential acquisitions. The company’s growth strategy focuses on tapping into the ₹37,800 crore Indian eye care market, which is projected to grow at a 12%-14% CAGR, reaching ₹55,000–65,000 crore by FY28.
Also read: Denta Water IPO: Price, GMP, Subscription Dates, and Review
Financial performance
| Period | Revenue (₹ Cr) | Expenses (₹ Cr) | Net Income (₹ Cr) | Margin (%) | ROCE (%) | EBITDA (%) |
| FY2022 | 696.08 | 657.02 | 37.69 | 5.41 | 15.02 | 27.99 |
| FY2023 | 1,017.98 | 947.90 | 94.10 | 9.24 | 15.18 | 27.52 |
| FY2024 | 1,332.15 | 1,235.88 | 83.06 | 6.23 | 14.61 | 29.54 |
| H1 FY2025 | 820.06 | 777.59 | 28.56 | 3.48 | 8.30 | 27.27 |
Dr. Agarwal’s financials indicate consistent revenue growth, but net margins have faced pressure due to operational costs and expansion expenses.
Dr. Agarwal’s Health Care IPO details
| IPO Details | Information |
| IPO Date | January 29, 2025 – January 31, 2025 |
| Listing Date | February 5, 2025 |
| Price Band | ₹382 – ₹402 per share |
| Lot Size | 35 shares |
| Total Issue Size | ₹3,027.26 crore |
| Fresh Issue | ₹300 crore |
| Offer for Sale | 6,78,42,284 shares |
| QIB Reservation | 50% |
| Retail Reservation | 35% |
| NII Reservation | 15% |
Shareholding pattern
| Category | Pre-IPO Holding | Post-IPO Holding |
| Promoters | 37.72% | – |
| Public | 62.28% | – |
The IPO will lead to dilution of promoter holding, increasing public participation in the company.
Also read: Stallion India Fluorochemicals IPO: A Detailed Guide
How will the funds be used?
Dr. Agarwal’s Health Care plans to utilize the IPO proceeds as follows:
- Debt Repayment: ₹195 crore to reduce financial liabilities.
- General Corporate Purposes: Funding operational growth and expansion.
- Inorganic Acquisitions: Exploring new investments to expand its market presence.
Should you invest in Dr. Agarwal’s Health Care IPO?
Advantages: Why you should consider investing
- Market Leadership: Dr. Agarwal’s is India’s largest organized eye care provider, holding a 25% market share.
- Scalable Business Model: The company’s hub-and-spoke strategy allows for cost-efficient expansion with a minimal investment.
- Consistent Growth: Revenue has grown at a CAGR of 30.86%, and the company continues to scale operations both domestically and internationally.
- High Demand for Eye Care: With an aging population and increasing awareness about eye health, the demand for specialized services is expected to rise.
- International Expansion: The company has an established footprint in Africa, tapping into underserved markets with strong growth potential.
Disadvantages: What you need to watch out for
- Margin Pressure: The company’s net margin has declined in FY24, reflecting rising operational costs.
- Competitive Industry: The eye care industry has several unorganized players, posing a pricing challenge.
- Regulatory Risks: The healthcare sector is heavily regulated, and policy changes could impact operations.
- High Valuation: Some analysts believe the IPO is expensively priced given its recent financial performance.
Bottom line
Dr. Agarwal’s Health Care IPO presents an attractive opportunity for investors looking to enter the healthcare sector. With strong market leadership, an expanding international presence, and a scalable business model, the company is well-positioned for growth. However, margin pressures, competition, and valuation concerns should be taken into account before making an investment decision.
Final Verdict: Long-term investors who believe in India’s growing healthcare market may find this IPO worth considering, while short-term traders should evaluate listing-day trends for potential gains.
