Dr Agarwal's Health Care IPO

About Dr Agarwal’s Health Care Ltd IPO

The IPO of Dr Agarwal’s Health Care Ltd is a 100% book-built issue comprising a fresh issue and offer for sale. While the fresh issue of equity shares aggregates up to ₹300 crore, the offer for sale comprises up to 67,842,284 equity shares.

Objectives of Dr Agarwal’s Health Care Ltd IPO

The company proposes to utilise the net proceeds from the IPO for:

• Repayment/prepayment, in part or full, of certain of its borrowings
• General corporate purposes and unidentified inorganic acquisition

Industry Outlook:

Owing to the high prevalence of eye disorder in India population, eye care is an integral part of the Indian health care system. The eye care market in India has grown at CAGR of 11.5% between Financial Year 2019 and 2024 to reach the value of ₹378 billion in Financial Year 2024. This market includes surgical and non-surgical treatments for patients suffering from various eye disorders. The Indian eye care industry is projected to grow at CAGR of 12-14% between Financial Year 2024 to 2028 to reach market size of ₹550-650 billion.

About Dr Agarwal’s Health Care Ltd

Dr Agarwal’s Health Care Ltd provides a comprehensive range of eye care services, including cataract, refractive and other surgeries. It also offers consultations, diagnoses and non-surgical treatments and sells opticals, contact lenses and accessories, and eye care related pharmaceutical products.

Dr Agarwal’s Health Care Ltd IPO Risk Factors

• The company operates in a regulated industry, and its failure to comply with applicable safety, health, environmental, labor and other regulations, or to obtain or renew approvals, may adversely affect its business, reputation, financial condition, results of operations and cash flows.

• Majority of its facilities are located in Tamil Nadu (in particular, Chennai), Maharashtra and Karnataka in India and any adverse developments in relation to these facilities could adversely affect its business, financial condition, results of operations and cash flows.

• The company’s international operations expose it to management, legal, tax, political and economic risks, and its failure to address such risks could adversely affect its business, results of operations, financial condition and cash flows.

Anchor Investor Bidding Date

The anchor investor bidding will take place on 28/1/2024, one day prior to the IPO opening.

IPO Registrar and Book running lead managers

• Kotak Mahindra Capital Company

• Morgan Stanley India Company Private Limited

• Jefferies India Private Limited

• Motilal Oswal Investment Advisors Limited

The Registrar for the IPO is Kfin Technologies Limited.

Business Model

The offerings of the company include:

• Surgeries, including cataract surgeries, refractive surgeries and other surgeries
• Consultations, diagnoses and non-surgical treatments
• Sale of opticals, contact lens and accessories
• Sale of eye care-related pharmaceutical products

Growth Trajectory

The company’s business has demonstrated attractive financial performance over the last three financial years. Its revenue from operations grew from ₹696.078 crore in FY 22 to ₹1332.152 crore in FY 24. Its EBITDA increased from ₹199.822 crore in FY 22 to ₹406.555 crore in FY 24.

Market Position

According to the CRISIL MI&A Report, Dr Agarwal’s Health Care Ltd had a market share of approximately 25% of the total eye care service chain market in India during the Financial Year 2024. With long-standing operational history, the company endeavours to address all the needs of its patients in their eye treatment journey through a network, which as of September 30, 2024, comprised 209 facilities.

How to Check Allotment Status of Dr. Agarwal’s Health Care IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Dr. Agarwal Health Care Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check the status on the registrar’s website:

• Visit the website of Kfin Technologies Limited
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these — PAN Number, Application Number, DP/Client ID, Account Number / IFSC

Click on Submit to check the status

How to Apply for Dr Agarwal’s Health Care Ltd IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI