Dr. Agarwal’s Health Care Limited is set to launch its Initial Public Offering (IPO) from January 29 to 31, 2025. Here’s a detailed analysis:
1. Company Overview:
- Established: 2010
- Headquarters: Chennai, India
- Specialization: Comprehensive eye care services, including:
- Cataract and refractive surgeries
- Consultations
- Diagnostics
- Non-surgical treatments
- Retailing optical products, contact lenses, accessories, and eye care pharmaceuticals
- Network: As of September 30, 2024, the company operates:
- 28 hubs (tertiary facilities and centers of excellence)
- 165 spokes (primary and secondary facilities)
- International presence with 16 facilities across nine African countries
- Medical Team: 737 doctors providing patient care
2. IPO Details:
- Subscription Period: January 29 to 31, 2025
- Price Band: ₹382 to ₹402 per equity share
- Lot Size: 35 shares
- Issue Size: Totaling ₹3,027.26 crore, comprising:
- Fresh Issue: ₹300 crore
- Offer for Sale (OFS): 6.78 crore shares amounting to ₹2,727.26 crore by existing shareholders
- Allocation:
- Qualified Institutional Buyers (QIB): Not more than 50%
- Non-Institutional Investors (NII): Not less than 15%
- Retail Individual Investors (RII): Not less than 35%
- Employee Reservation: Up to 1,579,399 equity shares
- Shareholder Reservation: Up to 1,129,574 equity shares
3. Key Dates:
- Anchor Investor Allocation: January 28, 2025
- Basis of Allotment Finalization: February 3, 2025
- Refunds Initiation: February 4, 2025
- Shares Credit to Demat Accounts: February 4, 2025
- Listing Date: February 5, 2025, on BSE and NSE
4. Financial Performance:
- Revenue Growth:
- FY 2022: ₹696.08 crore
- FY 2023: ₹1,017.98 crore
- FY 2024: ₹1,332.15 crore
- Profit After Tax (PAT):
- FY 2022: ₹43.16 crore
- FY 2023: ₹103.23 crore
- FY 2024: ₹95.05 crore
- Earnings Per Share (EPS):
- FY 2022: ₹1.83
- FY 2023: ₹4.00
- FY 2024: ₹3.13
- Return on Net Worth (RoNW):
- FY 2022: 17.75%
- FY 2023: 14.99%
- FY 2024: 6.21%
5. Objectives of the IPO:
- Debt Repayment: Utilize ₹195 crore from the net proceeds to repay or prepay certain borrowings, aiming to reduce indebtedness and improve the debt-equity ratio.
- General Corporate Purposes: Allocate remaining funds towards corporate needs to support future growth and expansion.
6. Strengths:
- Established Brand: Recognized name in eye care with a significant presence in India and Africa.
- Comprehensive Services: Offers a wide range of eye care services and products under one roof.
- Scalable Model: The hub-and-spoke structure allows efficient resource utilization and deeper market penetration.
- Financial Growth: Demonstrated consistent revenue growth over the past few years.
7. Risks and Challenges:
- Revenue Dependency: A significant portion of revenue is derived from surgical procedures; any decline in patient footfall or surgical demand could impact financials.
- Operational Challenges: Maintaining service quality, managing a large workforce, and ensuring consistent patient experiences across multiple locations.
- Market Competition: Faces competition from other organized and unorganized eye care providers in India and abroad.
8. Market Potential:
- Indian Eye Care Market: Valued at ₹37,800 crore in FY 2024, projected to grow at a CAGR of 12%-14%, reaching ₹55,000–65,000 crore by FY 2028.
- Organized Sector Opportunity: Organized eye care chains currently account for 13%-15% of the total market, indicating significant growth potential.
9. Grey Market Premium (GMP):
- As of the latest reports, the shares are trading at a premium of ₹164 in the grey market, suggesting a potential listing price of ₹566 per share, which is approximately 40
