| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 382 to ₹ 402 | 35 | 29th Jan, 2025 – 31st Jan, 2025 | ₹ 3,027.26 Cr |
About Dr. Agarwal’s Health Care Ltd IPO
Dr Agarwal’s Health Care Ltd (DAHCL) operates in the eye-care market in India, providing a comprehensive range of eye-care services, including cataract, refractive and other surgeries; consultations, diagnoses and non-surgical treatments; and selling opticals, contact lenses and accessories, and eye care related pharmaceutical products. The company holds a market share of ~25% in India’s total eye care service chain market (as per CRISIL MI&A Report). The company boasts a comprehensive network of 209 facilities complemented by 737 doctors across its facilities (as of September 2024). The company covers the following offerings: 1) Cataract surgeries, Refractive surgeries and other surgical treatments for eye ailments. 2) Consultations, diagnoses and non-surgical treatments. 3) Products: Sale of opticals, contact lenses and accessories and Sale of eye care-related pharmaceutical products The company uses a “hub and spoke” model for its operations. As of September 30, 2024, it has 28 hubs (Tertiary facilities with three Centres of Excellence or COEs) and 165 spokes (53 Primary and 112 Secondary facilities) across India. Primary facilities offer initial eye care and clinical investigations. Secondary facilities provide select surgeries like cataracts. Tertiary facilities perform super-specialty surgeries, and COEs also offer training and academic programs. This model ensures extensive coverage, accessibility, and efficient resource use across the network. Additionally, the company also commenced its international operations in 2012 and as of September 30, 2024, the company operates 16 facilities across nine countries in Africa, where we provide a range of eye care services, including treatments for cataract, glaucoma, diabetic retinopathy, retinal detachment, and dry eye, along with refractive surgeries, and paediatric and neuro ophthalmological treatments. The company’s revenue from surgeries in FY24 was Rs. 8,551.86 million, accounting for 64.2% of total operations. Sales of products, including optical and pharmaceuticals, contributed Rs. 1,739.61 million (13.06%) and Rs. 1,047.26 million (7.86%), respectively. Consultation services generated Rs. 770.01 million (5.78%), and treatments/investigations contributed Rs. 1,133.83 million (8.51%).
Objective of the Dr. Agarwal’s Health Care Ltd IPO
The net proceeds of the fresh issue are proposed to be utilised in the following manner:
- Repayment or prepayment, in part or full, of certain borrowings; and
- General corporate purposes and unidentified inorganic acquisitions.
Rationale To Dr. Agarwal’s Health Care Ltd IPO
Largest provider of comprehensive end-to-end eye care services in India
DAHCL is recognised as India’s largest eye care service chain by revenue from operations for FY24, with approximately 1.7 times the revenue from operations compared to the second-largest eye care service chain in the country during the same period. As of September 30, 2024, the company has 193 facilities in India, spanning 14 states and four union territories, and 16 facilities spread across nine countries in Africa. With a long-standing operational history, the company emerges as a trusted brand in the Indian eye-care service industry. Being an end to end eye care service provider, the company can cater to all ophthalmic needs of their patients. To further enhance patient convenience, several DAHCL facilities also have embedded pharmacies and optical product counters, facilitating the cross-selling of optical and eye care-related pharmaceutical products. The company’s strong brand reputation is built on the high standards of its doctors and medical staff, its quality service offerings, and its extensive reach. This results in strong brand affinity, making DAHCL the preferred eye care service provider for patients. Their wide reach through their facilities, qualified workforce, and specialised equipment enables them to improve their services continually, solidifying their position as the largest eye care services provider in India.
Scalable, asset-light, hub-and-spoke operating model
DAHCL operates on a flexible “hub-and-spoke” model that supports high patient volumes and achieves economies of scale, providing patients with greater accessibility and choice while optimizing the efficient use of crucial doctor resources across the network. Except for one, all of its facilities are leased, enabling them to scale operations with minimal upfront investment. Thanks to this hub-and-spoke and asset-light approach, the company expanded from 91 facilities as of March 31, 2022, to 193 facilities in India by September 30, 2024. In DAHCL’s “hub-and-spoke” model, patients can walk into a “spoke” (Primary facilities and Secondary facilities) nearest to them and be referred to a Secondary facility or Tertiary facility (a “hub”) as needed. This model promotes the sharing of crucial doctor resources, helping the company to build a scalable platform for continued business growth. The Primary facility network is technology-enabled, providing local access to basic eye care diagnostics and investigation services, along with teleconsultation with doctors from the nearest Secondary or Tertiary facility. Doctors can refer patients to other facilities, where they receive comprehensive eye care services, surgical procedures, or other medical treatments. This integrated model has strengthened DAHCL’s market position by enabling them to serve a large community through a steady flow of patients and effective utilization of doctors and medical resources across the network.
Valuation of Dr. Agarwal’s Health Care Ltd IPO
Dr Agarwal’s Health Care Ltd (DACHL) is India’s largest eye care service provider, offering a comprehensive range of eye care services and products. Recognised for its comprehensive and end-to-end ophthalmic services, including embedded pharmacies and optical product counters, DAHCL has built a trusted, quality-driven brand. Known for its efficient, asset-light, hub-and-spoke model, DAHCL has expanded rapidly and supports high patient volumes through effective resource utilisation, solidifying its market position and continuous growth. On the economic front, the Indian eye care industry is projected to grow at a CAGR of 12% to 14% from FY24 to FY28 to reach a market size of ₹550-650 billion. The growth in the industry is led by factors such as the high prevalence of eye-related disorders in India, rise in income levels, shifting age demographics, lifestyle changes, emerging eye care service chains, and government and non-government organisation initiatives to promote awareness about eye health in India. With a substantial market share in the organized eye care segment, we believe the company is well-positioned to be a key beneficiary of economic growth and capitalize well on the emerging trends in the segment. On the financial front, the company reports revenue/EBITDA/PAT at a CAGR of 38.3%/41.0/48.4%. The company has substantially been able to improve its D/E from 3.3 in FY22 to 1.0 in FY24. It exhibits an ROE of 6.9% and an ROCE of 8.2%, which is below the industry average. The company trades at a P/E of 128x, based on its FY24 earnings we believe is overvalued compared to its listed peers. Driven by inconsistent financial performance, rich valuation and higher concentration of OFS in the Issue, we remain largely cautious of the listing. We thus recommend an AVOID rating for the issue and will reassess our rating in future following sustained business performance in upcoming quarters.
What is the Dr. Agarwal’s Health Care Ltd IPO?
Dr Agarwals Healthcare IPO is a book built issue of Rs 3,027.26 crores. The issue is a combination of fresh issue of 0.75 crore shares aggregating to Rs 300.00 crores and offer for sale of 6.78 crore shares aggregating to Rs 2,727.26 crores. Login to your account now.
How to apply for the Dr. Agarwal’s Health Care Ltd IPO through StoxBox?
To apply for the Dr. Agarwal’s Health Care Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Dr. Agarwal’s Health Care Ltd IPO open?
Dr. Agarwal’s Health Care Ltd IPO is opening on 29th January 2025. Apply Now
What is the lot size of the Dr. Agarwal’s Health Care Ltd IPO?
The Lot Size of Dr. Agarwal’s Health Care Ltd IPO is 35 equity shares. Login to your account now.
When is the Dr. Agarwal’s Health Care Ltd IPO allotment date?
The allotment Date for Dr. Agarwal’s Health Care Ltd IPO is 03rd February 2025. Login to your account now.
When is the Dr. Agarwal’s Health Care Ltd IPO listing date?
The listing Date for Dr. Agarwal’s Health Care Ltd IPO is 05th February 2025. Login to your account now
What is the minimum investment required for the Dr. Agarwal’s Health Care Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,070. Login to your account now
What is the maximum investment allowed for the Dr. Agarwal’s Health Care Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 196,980. Login to your account now
What are the risks associated with investing in the Dr. Agarwal’s Health Care Ltd IPO?
- A significant majority of the company’s facilities are located in the states of Tamil Nadu (particularly Chennai), Maharashtra, and Karnataka in India.
- The company is exposed to credit risks concerning payments from third parties, including under central and state government schemes, government corporations, insurance companies, and third-party administrators.
- The company engages doctors through retainer-ship arrangements, and there is no assurance that these doctors will not prematurely terminate their arrangements.
When will the Dr. Agarwal’s Health Care Ltd IPO shares be credited to my Demat account?
The Dr. Agarwal’s Health Care Ltd IPO be credited to the account on allotment date which is 04th February 2025. Login to your account now
Where can I find the Dr. Agarwal’s Health Care Ltd IPO prospectus?
The prospectus of Dr. Agarwal’s Health Care Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Dr. Agarwal’s Health Care Ltd IPO?
| IPO Open Date | Wednesday, January 29, 2025 |
| IPO Close Date | Friday, January 31, 2025 |
| Basis of Allotment | Monday, February 3, 2025 |
| Initiation of Refunds | Tuesday, February 4, 2025 |
| Credit of Shares to Demat | Tuesday, February 4, 2025 |
| Listing Date | Wednesday, February 5, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 31, 2025 |
