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DR. AGARWAL'S HEALTH CARE IPO

14,070
Minimum Investment

Price Range (₹)

Rs. 382 –Rs. 402

Issue Size (₹ in Cr.)

Up to 3027.26 Cr

Minimum Quantity

35 Shares

Bidding Period

Jan 29 – Jan 31, 2025
  Prospectus Document: Download Now

Subscription Status

Shareholder
Retail Individual Investor
Non-Institutional Investor
Qualified Institutional Buyers
Employee
Overall

Dr. Agarwal's Health Care Limited IPO: A Comprehensive Overview

Dr. Agarwal's Health Care Limited, a renowned name in the field of eye care in India, is gearing up for its Initial Public Offering (IPO). The company, with its decades of expertise and a strong presence in the healthcare sector, offers investors an exciting opportunity to participate in the growth story of a specialized healthcare provider.

In this article, we will take an in-depth look at the company’s business model, financial performance, and the key details of its IPO.

About Dr. Agarwal's Health Care Limited

Incorporated in 2010, Dr. Agarwal's Health Care Limited has emerged as one of India’s leading providers of eye care services. The company is widely recognized for its expertise in ophthalmology, offering advanced treatment options for various eye-related issues. With a network of over 150 hospitals across India and Africa, the company has established itself as a pioneer in providing comprehensive eye care services.

Key Offerings:

  1. Cataract and Refractive Surgery: Advanced surgical treatments for cataract and vision correction.
  2. Retina Services: Specialized care for retinal disorders such as diabetic retinopathy and macular degeneration.
  3. Glaucoma Management: Comprehensive diagnosis and treatment of glaucoma.
  4. Corneal Transplants: Cutting-edge procedures for corneal diseases.
  5. Other Eye Treatments: Paediatric ophthalmology, contact lens fitting, and general eye health services.


Market Potential

India’s healthcare market is expanding rapidly, with eye care being a critical segment. With a growing population, increased prevalence of lifestyle diseases like diabetes, and rising awareness about the importance of eye health, the demand for specialized eye care services is expected to rise significantly.

Moreover, with a focus on innovation and accessibility, companies like Dr. Agarwal's are well-positioned to address this demand. The company’s presence in Africa also allows it to tap into international markets where access to quality eye care is limited.

Dr. Agarwal's Health Care Limited IPO Details

Here are the key details of the upcoming IPO:

  • IPO Date: January 29, 2025 to January 31, 2025
  • Listing Date: Wednesday, February 5, 2025
  • Face Value: ₹1 per share
  • Price Band: ₹382 to ₹402 per share
  • Lot Size: 35 Shares
  • Total Issue Size: ₹3027.26 Cr
  • Use of Proceeds: For expanding the hospital network, upgrading medical infrastructure, and reducing debt.


Objectives of the IPO

The IPO proceeds will be utilized for the following purposes:

  1. Hospital Expansion: Setting up new hospitals in underserved regions and expanding the network in existing markets.
  2. Infrastructure Upgrades: Acquiring state-of-the-art medical equipment and enhancing facilities to provide world-class eye care services.
  3. Debt Reduction: Reducing borrowings to improve the company’s financial position and free up resources for growth.
  4. Research and Development: Investing in new treatments, surgeries, and technologies to remain at the forefront of eye care.


Financial Performance

Dr. Agarwal's Health Care Limited has demonstrated consistent growth in revenue and profitability over the past three years. Below is a summary of the company’s financial performance:

Financial Metrics

31 Mar 2024

31 Mar 2023

31 Mar 2022

Assets

2,752.82

1,825.17

1,026.13

Revenue

1,376.45

1,031.49

713.78

Profit After Tax

95.05

103.23

43.16

Net Worth

1,337.68

627.83

212.34

Reserves and Surplus

1,365.86

652.63

236.27

Total Borrowing

387.79

356.18

290.18

 

Key Financial Highlights

  1. Revenue Growth: Revenue grew significantly over the three years, increasing from ₹713.78 crore in FY 2022 to ₹1,376.45 crore in FY 2024, demonstrating a compound annual growth rate (CAGR) of approximately 38%.
  2. Profitability: While the profit after tax (PAT) saw a slight decline from ₹103.23 crore in FY 2023 to ₹95.05 crore in FY 2024, the overall growth since FY 2022 highlights consistent operational performance.
  3. Asset Expansion: Total assets more than doubled between FY 2022 and FY 2024, reaching ₹2,752.82 crore in FY 2024, reflecting significant investments in infrastructure and technology.
  4. Net Worth: The company’s net worth increased sharply from ₹212.34 crore in FY 2022 to ₹1,337.68 crore in FY 2024, indicating a strong financial position.
  5. Reserves and Surplus: Reserves grew steadily, showing the company’s focus on retaining earnings to fuel growth.
  6. Borrowings: Borrowings increased moderately over the three years, from ₹290.18 crore in FY 2022 to ₹387.79 crore in FY 2024, suggesting the use of leverage to fund expansion while maintaining manageable debt levels.

Dr. Agarwal's Health Care Limited's financials highlight its robust growth, strong asset base, and prudent financial management, making it an appealing prospect for potential investors.

Competitive Advantages

Dr. Agarwal's Health Care Limited enjoys several competitive advantages that position it as a leader in the eye care industry:

  1. Strong Brand Reputation: Decades of expertise and a trusted name in eye care.
  2. Comprehensive Services: A wide range of eye care treatments under one roof.
  3. Experienced Team: Highly skilled ophthalmologists and medical professionals.
  4. Technological Edge: Adoption of advanced medical technologies and innovative treatments.
  5. Global Presence: Expansion in Africa provides access to international markets.


Risks and Challenges

While the company shows strong potential, investors should consider the following risks:

  1. Competition: The eye care segment is competitive, with both organized and unorganized players vying for market share.
  2. Regulatory Risks: Changes in healthcare regulations could impact operations.
  3. Economic Conditions: Economic downturns could affect discretionary healthcare spending.
  4. Expansion Risks: Rapid expansion may pose challenges in maintaining service quality and operational efficiency.


Conclusion

Dr. Agarwal's Health Care Limited IPO presents a compelling opportunity for investors to participate in the growth of India’s eye care industry. With a strong financial foundation, a trusted brand, and ambitious expansion plans, the company is well-positioned to capture the increasing demand for specialized healthcare services.

As always, potential investors should carefully evaluate the associated risks and perform due diligence before making investment decisions. Dr. Agarwal's Health Care Limited is not just an IPO; it is a chance to be a part of a success story in India’s healthcare sector.

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