Dr. Agarwal’s Health Care, a prominent eye care service provider in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to pave the way for its Initial Public Offering (IPO). The company aims to raise a total of ₹300 crores, consisting of ₹300 crores through fresh issues and ₹6.96 crores via an Offer for Sale (OFS) from promoters and existing shareholders looking to divest their stakes.
The shares from this IPO will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Of the proceeds from the new issuance, ₹195 crores will be allocated for general business expenditures, prospective acquisitions, and repayment of debts. Additionally, the offer also includes provisions for subscriptions by eligible employees.
As highlighted in a recent report by CRISIL MI&A, Dr. Agarwal’s Health Care commands approximately 25% of the total eye care service market share in India as of FY 2024, reflecting its significant footprint in the industry.
The book-running lead managers for this IPO include prominent financial institutions such as Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, and Motilal Oswal Investment Advisors Limited. The founding owner of the company, Amar Agrawal, has played a pivotal role in its establishment and growth since its inception in 1994.
Notably, the company has seen an improvement in its debt-to-equity ratio, which decreased from 1.3 in FY23 to 0.70 in FY24, indicating enhanced financial stability. Total liabilities rose from ₹100.57 crore in 2021 to ₹338.61 crore in 2024, showcasing the company’s growth trajectory.
With advanced methodologies spearheaded by seasoned doctors and cutting-edge innovations, Dr. Agarwal’s Eye Hospitals have expanded across 13 states and 3 Union Territories in India, including regions such as Madhya Pradesh, Rajasthan, Punjab, Gujarat, Haryana, Chandigarh, Andaman, Puducherry, West Bengal, Maharashtra, Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Telangana, and Odisha.
Dr. Agarwal’s Health Care IPO Prospectus
| DRHP Draft Prospectus: | Available upon request |
| RHP Draft Prospectus: | To be Updated Soon |
Dr. Agarwal’s Health Care Financial Overview
Figures are in ₹ Crores
| Period Ended | Revenue | Expenses | Profit After Tax |
| 2022 | ₹713.78 | ₹657.02 | ₹43.16 |
| 2023 | ₹1031.49 | ₹947.90 | ₹103.23 |
| 2024 | ₹1376.45 | ₹1235.88 | ₹95.05 |
Dr. Agarwal’s Health Care IPO Valuation – FY2024
The valuation metrics for Dr. Agarwal’s Health Care highlight critical financial indicators:
| Earnings Per Share (EPS): | ₹3.14 (Basic) |
| Price/Earnings (P/E) Ratio: | N/A |
| Return on Net Worth (RoNW): | 6.21% |
| Net Asset Value (NAV): | ₹50.53 |
Peer Group Comparison
| Company | EPS | P/E Ratio | RoNW % | NAV | Income |
| Apollo Hospitals Enterprise Limited | 62.50 | 113.47 | 12.97% | 481.93 | 19059.20 Cr. |
| Max Healthcare Institute Limited | 10.89 | 98.56 | 12.58% | 86.54 | 6849.00 Cr. |
| Fortis Healthcare Limited | 7.93 | 76.33 | 7.82% | 101.48 | 6892.92 Cr. |
| Global Health Limited | 17.80 | 62.32 | 16.46% | 108.17 | 3275.11 Cr. |
| Narayana Hrudayalaya Limited | 38.86 | 32.04 | 27.37% | 141.98 | 5018.25 Cr. |
| Krishna Institute of Medical Sciences Limited | 38.75 | 14.13 | 16.96% | 228.47 | 2498.14 Cr. |
| Aster DM Healthcare Limited | 2.60 | 162.10 | 3.63% | 71.62 | 3698.90 Cr. |
| Rainbow Children’s Medicare Limited | 21.38 | 64.46 | 17.24% | 124.03 | 1296.90 Cr. |
Objectives of the Issue
- Partially or fully repay existing borrowings;
- Allocate funds for general corporate purposes and potential acquisitions.
IPO Lead Managers (Merchant Bankers)
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Private Limited
- Jefferies India Private Limited
- Motilal Oswal Investment Advisors Limited
