Dr. Agarwal's Healthcare IPO Sees Overwhelming Response

Dr. Agarwal's Healthcare's initial public offering (IPO) witnessed a robust subscription rate, being oversubscribed by 1.55 times on its opening day. This remarkable interest was highlighted by the bidding of 8.32 crore shares against the 5.35 crore shares offered, as per the latest NSE data.

Qualified Institutional Buyers Lead the Charge

Qualified institutional buyers, encompassing a wide range of investors from foreign institutional investors (FIIs) to domestic financial institutions, mutual funds, and more, subscribed 4.64 times the portion allocated to them, showcasing strong institutional confidence in the offering.

Retail and Non-Institutional Investors Show Varied Interest

While the institutional segment showed overwhelming interest, retail individual investors subscribed to just 41% of their reserved portion. Similarly, non-institutional investors and employees bid for 40% and 27% of their respective allocations, indicating a more cautious approach from these investor categories.

Utilization of IPO Proceeds

The price band for the IPO was set between Rs 382 to Rs 402 per share. The company plans to utilize the proceeds from the fresh issuance, amounting to Rs 195 crore, for repayment/prepayment of debts, general corporate purposes, and inorganic acquisitions, as outlined in its draft papers.

About Dr. Agarwal's Healthcare

Backed by Temasek Holdings and TPG, Dr. Agarwal's Healthcare is a leading eye care services provider. It offers a comprehensive range of services, including cataract, refractive, and other surgeries, consultations, diagnoses, and non-surgical treatments. As of September 2024, the company operates 193 facilities across 117 metro and non-metro cities in 14 states and four union territories in India, along with 16 facilities in nine African countries.

The book-running lead managers for the IPO include Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited, with KFin Technologies Limited serving as the registrar of the issue.