Dr. Agarwal’s Eye Hospital IPO: A Detailed Overview for Investors


Dr. Agarwal's Health Care Limited, a well-established name in the eye care sector, has launched its Initial Public Offering (IPO) to raise ₹3,027.26 crore. The IPO subscription window is open from January 29 to January 31, 2025. This marks a significant milestone for the company, known for its expertise in advanced ophthalmology treatments.

Dr. Agarwal’s Eye Hospital IPO Details

  • Total Issue Size: The IPO includes a fresh issue of ₹300 crore and an Offer for Sale (OFS) of ₹2,727.26 crore.
  • Price Band: Shares are available for subscription within the range of ₹382 to ₹402 per share.
  • Lot Size: Investors must bid for a minimum of 35 shares and can apply in multiples of this lot size.
  • Listing Date: The shares are scheduled to be listed on the NSE and BSE on February 5, 2025.

About the Company

Dr. Agarwal’s Health Care operates a widespread chain of hospitals under the brand "Dr. Agarwal’s Eye Institute." It provides a range of specialized eye treatments, including cataract surgery, LASIK procedures, retina treatments, and corneal transplants.

As of September 2024, the company operates 209 centers, comprising 193 in India and 16 in Africa, making it the largest organized eye care service provider in the country.

Financial Performance

  • Revenue Growth: The company reported a 30.86% increase in revenue, reaching ₹1,332.15 crore in FY24 compared to the previous financial year.
  • Net Profit: The net earnings for FY24 stood at ₹95.05 crore, showcasing its profitability and expansion potential.
  • Market Position: With a 25% market share in the organized Indian eye care segment, Dr. Agarwal’s Health Care is a leader in its industry.

Investment Insights: Should You Consider This IPO?

Pros of Investing in Dr. Agarwal’s IPO

✅ Market Dominance: Being India’s largest eye care chain, it has a well-established presence in the healthcare industry.
✅ Comprehensive Services: Offers all major eye care treatments under a single network.
✅ Scalable Business Model: Operates a hub-and-spoke model, with flagship hospitals (hubs) offering specialized treatments, while smaller satellite clinics (spokes) provide basic consultations and diagnostics.

Risks to Consider

  • Grey Market Premium (GMP) Decline: Initially, the GMP was around ₹54, but it has dropped to ₹15 before the IPO launch. This suggests lower investor enthusiasm.
  • High OFS Component: Since a large portion of the IPO is an Offer for Sale (OFS), the company will not receive much funding for expansion, which could limit future growth.

Final Thoughts

Dr. Agarwal’s Health Care IPO presents an opportunity to invest in India’s leading eye care service provider with strong financials and a growing presence. However, potential investors should analyze the risks, such as the lower GMP trend and limited fresh capital infusion due to the OFS structure.

As always, it is advisable to conduct thorough research and consult a financial advisor before making investment decisions.

Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Investors should carefully review the company’s financials and IPO prospectus before investing.

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