The Indian ophthalmic industry leader, Dr. Agarwal’s Healthcare Limited has made active plans to conduct the Initial Public Offer either on January 29 or January 31, 2025. Given this information, I believe multiple stakeholders and market experts are well informed. We are, however, more th interested in conducting due diligence on the company, as well as how the IPO will be managed, the company’s solvency position, its growth plans and other market aspects of the business. This serves as a comprehensive perspective from which the target audience makes a decision. IPOs of Dr. Agarwal’s Healthcare – A Case Study.
About the Business
The year 2010 marked the first year of operation for Dr. Agarwal’s Healthcare Limited which today is one of the leading eye care service providers in India. It is located in the city of Chennai in the state of Tamil Nadu and operates across all parts of India where it provides a wide range of Ophthalmology services including major surgeries. Dr. Agarwal’s has progressed tremendously and continues to advance its reputation for high quality patient care and clinical superiority. IPOs of Dr. Agarwal’s Healthcare – A Case Study.
IPO Overview
From January 29 to January 31, 2025, the shares will be available for purchase, and the IPO will officially be on sale on January 29. For this IPO, there is both a sale offer and a fresh issue. With the intention of acquiring $300 crores, the sale offer consists of more than 69 million equity shares, each with a little face value of ₹1. iShares are available for a minimum bid of 35. The price range for the IPO is between ₹382 and ₹402 per share. Anchor investors can place their bids on January 28, 2025, the day before the IPO goes live. IPOs of Dr. Agarwal’s Healthcare – A Case Study.
ZEE BUSINESS
Financial Summary
Dr Agarwal’s healthcare company earned a profit of ₹95.05 crores and ₹1332.15 crore as the total income for the year ending on 31 March 2024. Such performance shows good financial strength and earning power. Considering the recent acquisitions alongside some of his ore candid assets, I am inclined to put her under an asset light model. IPOs of Dr. Agarwal’s Healthcare – A Case Study.
Business Development Plans
Dr Agarwal’s Healthcare has developed several growth strategies to strengthen its position in the eye care sector. IPOs of Dr. Agarwal’s Healthcare – A Case Study.
Geographic Expansion: The firm has been able to expand its operations into various regions of India in order to serve a wider range of patients.
The company’s procedures alongside the best practices in the market have been incorporated which had an impact on the service delivery of the company.
There is a positive trend in the level of operational effectiveness and growth potential of the company with the transition to asset lite business model.
The measurement of investment in the technology alongside diagnostics indicates an increase in the accuracy of the treatment and improvement of the overall outcomes.
Market Position – Rivalry
There is competition for Dr. Agarwal’s Eye Hospitals from major players in the Indian eye care market. Nonetheless, the advantage this organization has is rooted in its core competencies including specialization, and patient and clinical satisfaction. Because of consistently focusing on enhanced care, there has been tremendous growth in patient trust and loyalty.
Risk Factors
Potential investors should be aware of the risk factors attached to the IPO:
Market Risk. The competition is moderate in this industry which hinders brand establishment for some businesses.
Regulatory Risk. Regulations are quite tough and must be followed, which may affect day to day operations.
Economic Risk. The willingness of patients to afford elective surgeries can reduce significantly due to unfavorable economic conditions.
Operational Risk. Supply chain disruptions or failure of technology could be some of the risks that might inhibit the provision of services.
Use of Issue Proceeds
The net proceeds from fresh issue are sought to be utilized for the following, cancelling some of the outstanding loans. Improving the balance sheet.
Corporate Purposes: Executing general activities of the corporation and funding the acquisition of planned assets.
Key Dates
Anchor Investor Bidding: January 28, 2025
IPO Opening Date: January 29, 2025
IPO Closing Date: January 31, 2025
Basis of Allotment Finalization: February 03, 2025
Initiation of Refunds: February 04, 2025
Credit of Shares into Demat Accounts: February 04, 2025
Listing Date: February 05, 2025
Investment Considerations
Investors must perform detailed analyses of the company as it concerns the IPO in his or her scope of investment to the company’s finances, competitive and growth opportunities. An informed investor will conduct a detailed examination in the DRHP and receive appropriate advice which is highly recommended.
Questions and Answers
What is the price band for Dr. Agarwal’s Healthcare IPO?
The price band is within the range of ₹382 – ₹402, per share.
What are the IPO dates?
The IPO is opening from 29th January 2025 to 31st January 2025.
How will the proceeds of the IPO be used?
The funds will be allocated for the company’s general use and settling interference as well as purchasing property when and if appropriate for the firm.
What is the lot size for IPO?
Shares must be purchased in a minimum of 35 blocks which can then be increased thereafter.
When will the shares be listed?
The shares will be expected for listing on February 2025 5th.
How did the business do in terms of finances?
In the fiscal year 2024, the company’s total income was approximately ₹1,332.15 crores however, the profit which was made during this period and after tax was even less than the expectations set.