15 hours Ago
The initial public offering of Dr Agarwal’s Health Care that opened on Wednesday was subscribed 7 per cent with muted response from all category of investors. The ₹3,025 crore IPO of Dr Agarwal’s Health Care comes out with a price band of ₹382-402 and closes on January 31. Investors can bid for a minimum lot of 35 shares.
The public issue is a mix of fresh issue of up to ₹300 crore and an offer of sale up to 6.78 crore shares by promoters, investors and other selling shareholders. Apart from the promoters, the other selling shareholders are Hyperion Investments Pte (entity of TPG Capital), Claymore Investments (Mauritius) and Arvon Investments Pte, which are wholly owned subsidiaries of Temasek Holdings.
The offer is being made through the book-building process, wherein not more than 50 per cent of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% per cent for non-institutional investors, and not less than 35 per cent for retail investors. The portions reserved for NII was subscribed 0.06 times subscription and retail investors’ 0.
14 times. QIB quota too did not elicit response. The portions reserved for employees (about 15.
8 lakh shares) and shareholder (Dr Agarwal’s Eye: 11.29 lakh shares) were subscribed 0.09 times and 0.
14 times respectively As part of IPO, Dr. Agarwal’s Health Care has garnered ₹875.50 crores from anchor investors by allotting 2,17,78,798 shares at ₹402 to anchor investors.
Foreign and domestic institutions participated in the anchor book and among them included Government of Singapore, Monetary Authority of Singapore, Government Pension Fund global, Invesco India Midcap Fund, Fidelity, The Nomura Trust, Ashoka Whiteoak MF, Motilal Oswal Small Cap Fund, Canara Robeco MF, VQ Fastercap Fund, The Prudential Assurance Co, HSBC Global Investment Fund, 360 One Equity Opportunity Fund, Goldman Sachs (Singapore) PTE. – ODI, Tiger Pacific Master Fund, Malabar India, Morgan Stanley Asia, Liontrust Investment Funds, Morgan Stanley Asia. Tata MF, Edelweiss MF, LIC MF, Axis Max Life, Aditya Birla Life, Edelweiss Life Insurance.
The proceeds from its fresh issuance to the extent of ₹195 crore will be utilised for the repayment or prepayment in part or full of its borrowings, and the rest for acquisitions and general corporate purposes. The company provides end-to-end comprehensive eye care services, including cataract, refractive and other surgeries; consultations, diagnoses and non-surgical treatments; and sells opticals, contact lenses and accessories, and eye care related pharmaceutical products through its network of 209 facilities as of September 30, 2024. According to a Crisil MI&A report cited in its red herring prospectus, the company held about 25 per cent of the total eye care service chain market in India as of FY24.
The company operates through a hub-and-spoke and asset light operating model. Comments.
