Dr. Agarwal’s Healthcare Limited, a leading player in India’s ophthalmology sector, is gearing up for its Initial Public Offering (IPO). With a strong legacy in providing advanced eye care solutions, the company has seen rapid expansion across India. This blog explores the company’s profile, financials, and the details of its much-anticipated IPO.
Company Overview
Dr. Agarwal’s Healthcare Limited is one of the leading players among eye care providers in India. It has a vast network of hospitals and clinics providing ophthalmic treatments, which include cataract surgery, LASIK, and advanced retinal procedures. The brand has earned trust through its commitment to innovation and quality patient care.
Promoters and Their Experience
The company is promoted by the well-known Dr. Amar Agarwal and his family, pioneers in the field of ophthalmology. With decades of experience and service, the promoters have led the company’s growth with cutting-edge technologies and a patient-centric approach.
Sector Overview
The Indian ophthalmology sector is forecast to grow at a CAGR of 9-10% for the next five years. Awareness of eye care is increasing, along with technological advancements, an aging population, and the increasing cases of lifestyle-induced eye disorders, which include diabetes. With its strong presence in metros and Tier-2/3 cities, the company is very well positioned to capture this growth.
Sector-Wide Market Breakdown (Industry Data)
Cataract Treatment Market: Accounts for around 45% of the overall ophthalmology market, primarily due to an aging population and increased insurance coverage.
Refractive Surgery (LASIK, SMILE, etc.): This holds 15% of the market. Demand from younger people is growing here to get their vision corrected.
Retina and Cornea Treatments: Represent 20% of the sector, addressing diseases like diabetic retinopathy and macular degeneration.
Glaucoma and Other Specialties: 20% driven by growing awareness and new treatment options.
Dr. Agarwal’s Performance in Key Segments
Dr. Agarwal’s Healthcare Limited generates revenue across its core specialties, with the following contributions (F.Y 2023)
- Cataract Surgeries: ₹610 crores
- Refractive Surgeries (LASIK, SMILE, etc.): ₹220 crores
- Retina Procedures: ₹180 crores
- Glaucoma & Cornea Treatments: ₹150 crores
- Other Specialties: ₹172 crores
This comparison between the sector-wide breakdown and Dr. Agarwal’s revenue highlights the company’s strength and focus in dominating these key specialties.
Objectives of the IPO
The proceeds from the IPO will be used for the following purposes.
- Expansion of the company’s network of hospitals and clinics.
- Investment in high-end medical equipment and technology.
- Repayment of outstanding debt to build a healthy balance sheet.
- General corporate purposes to help the company enhance efficiency in its operations.
Expansion of Facilities
As of September 30, 2024, Dr. Agarwal‘s Healthcare has expanded significantly with 193 facilities compared to 141 in 2023 and an increase of 52 centers in just one year.
- Tamil Nadu remains the largest market with 70 centers in 2024, up from 54 in 2023, with Chennai alone contributing 27 centers.
- Maharashtra saw substantial expansion, growing from 20 centers to 26 centers in 2024.
- Karnataka and Telangana also experienced notable growth, increasing from 18 to 24 centers and 10 to 16 centers, respectively.
- Other states like Gujarat, Kerala, Punjab, Madhya Pradesh, and Odisha saw moderate additions. The company also entered Uttar Pradesh, where it previously had no presence.“
Revenue Contribution by State and City to Dr. Agarwal
Dr. Agarwal’s Healthcare generates revenue from multiple states and key metropolitan cities. As of FY24, the top five states contributing to revenue are:
| State | Revenue in Cr |
| Tamil Nadu | 509.87 |
| Maharashtra | 177.13 |
| Karnataka | 150.24 |
| Telangana | 97.34 |
| Andhra Pradesh | 67.96 |
Key Cities Driving Revenue
| City | Revenue in Cr |
| Chennai | 236.4 |
| Bengaluru | 112.23 |
| Mumbai | 110.57 |
| Hyderabad | 97.34 |
| Madurai | 62.15 |
Financials of the CompanyÂ
Revenue of the Dr. Agarwal Healthcare from operations.
| Year | Revenue from Operations (in Cr) |
| 2022 | 696 cr |
| 2023 | 1017 cr |
| 2024 | 1332 cr |
Profit Before Tax of Dr. Agarwal Healthcare
| Year | Profit Before Tax (in Cr) |
| 2022 | 56 cr |
| 2023 | 83 cr |
| 2024 | 140 cr |
Profit for the Year – Dr Agarwal Healthcare
| Year | Profit in Cr |
| 2022 | 43.16 |
| 2023 | 103.23 |
| 2024 | 95.05 |
IPO Details of Dr. Agarwal Healthcare
| IPO Name | Dr. Agarwals Healthcare |
| Issue Type | Fresh Issue & Offer for Sale |
| IPO Open Date | January 29, 2025 |
| IPO Close Date | January 31, 2025 |
| Price Band | ₹382 to ₹402 per share |
| Lot Size | 35 Shares |
| Retail Investors Min lot & Amount | 1 lot & ₹14,070 |
| Retail Investors Max lots & Amount | 14 lots & ₹1,96,980 |
| Small HNI Min lot & Amount | 15 lots & ₹2,11,050 |
| Small HNI Max lots & Amount | 71 lots & ₹9,98,970 |
| Big HNI Min lots & Amount | 72 lots & ₹10,13,040 |
| Issue Size | 3,027.26 crores |
| Basis of Allotment | February 3, 2025 |
| Listing Date | February 5, 2025 |
| Listing Exchange | NSE & BSE |
| Retail Individual Investors (RII) Quota | 35% |
| Non-Institutional Investors (NII/HNI) Quota | 15% |
| Qualified Institutional Buyers (QIBs) Quota | 50% |
Risks
- Regulatory Risks: The healthcare sector is highly regulated. Thus, any changes in policies can affect operations.
- Competition: The ophthalmology sector is also competitive with many players already present in the market.
- Execution Risks: Easy growth through rapid expansion requires efficient management and infrastructure.
- Key Managerial Dependence: The success of the firm depends upon the experience of its promoters and medical professionals.
- Debt Obligations: Though improving, the company has large liabilities that need to be controlled.
- Technological Advancements: The requirement to stay abreast of the latest medical technologies presents continuous investment challenges.
Conclusion – Dr Agarwal Healthcare IPO
Dr. Agarwal’s Healthcare Limited’s IPO presents an exciting opportunity for investors. With strong financial performance, a well-planned expansion strategy, and a robust industry outlook, the company is well-positioned for long-term growth. However, investors should carefully evaluate risks before making a decision.
With the IPO around the corner, this is certainly a company to watch in the Indian stock market!
What is the GMP today of Dr Agarwal Healthcare IPO?
As of today, January 30, 2025, the GMP of Dr. Agarwal Healthcare is Rs. ₹1.5. With an upper price band of Rs 402, the estimated listing price is Rs 403.5, a gain of 0.37%.
What are the subscription details for Dr Agarwal Healthcare’s IPO?
The IPO will open for subscription tomorrow, dated January 30, 2025. In the Retail category, the IPO has been subscribed 0.24 times, 1.01 QIB, and 0.12 times in the NII/HNI Category.
How to check the Allotment status for Dr Agarwal Healthcare’s IPO?
The allotment status of Dr. Agarwal Healthcare’s IPO can be checked on the official website of the registrar
Kfin Technologies Limited.
What is the allotment date for Dr. Agarwals Healthcare’s IPO?
The allotment date for Dr Agarwal’s Healthcare IPO is February 3, 2025.
What is the listing date of Dr Agarwal’s Healthcare IPO?
The listing date for Dr. Agarwal’s Healthcare IPO is February 5, 2025.
Important Information
For current & Upcoming IPOs check the following link.