India's premier eye care provider Dr Agarwal's Healthcare makes its stock market debut today on both BSE and NSE, following the completion of its ₹3,027.26 crore initial public offering (IPO). The company's shares will commence trading at 10:00 AM as part of the Special Pre-open Session (SPOS) in the 'B' Group of Securities.
IPO Performance and Subscription Details
The public offering, which concluded on January 31, garnered an overall subscription of 1.55 times, revealing varying levels of investor interest across categories. Qualified institutional buyers (QIBs) showed the strongest support with 4.64 times subscription, while retail investors and non-institutional investors (NIIs) portions were undersubscribed at 41% and 40% respectively.
The IPO comprised a fresh issue of 74.62 lakh equity shares worth ₹300 crore and an offer for sale (OFS) of 6.78 crore shares totaling ₹2,727.26 crore. The price band was set at ₹382-402 per share.
Market Expectations and Analyst Insights
Market observers note a muted grey market premium, suggesting a tepid listing. Prashanth Tapse, Senior VP Research at Mehta Equities Ltd., anticipates a "flat to negative listing" citing current market volatility and concerns over the substantial 90% OFS component.
"The company brings investors a long-term opportunity to invest in India's largest eye care service chain by revenue in FY2024, holding a dominant 25% market share in the organized segment," Tapse commented, while advising non-allotted investors to adopt a wait-and-watch approach.
Valuation and Market Sentiment
Research Analyst Sagar Shetty from StoxBox points to multiple factors affecting investor sentiment:
- High valuation concerns
- Lower profitability metrics
- Significant promoter exit through OFS
- Overall weak market conditions
"The muted premium primarily reflects weak market sentiment," Shetty noted, recommending participants to avoid the issue until the company demonstrates sustained business performance in upcoming quarters.
IPO Management and Structure
The offering was managed by a consortium of leading financial institutions:
- Kotak Mahindra Capital Company
- Morgan Stanley India Company
- Jefferies India
- Motilal Oswal Investment Advisors
KFin Technologies served as the IPO registrar, with the allotment finalization completed on February 3.
