Dr Agarwal's Health Care IPO Day 1: Latest subscription update

Dr Agarwal's Health Care IPO, which opened for subscription today, has received a lacklustre response, with the total issue subscribed only 0.07 times. Out of the 5.4 crore shares on offer, investors placed bids for just 38 lakh shares.

Retail investors led the bidding, with applications for 29 lakh shares against their allocated portion of 2.54 crore. The non-institutional investor portion was subscribed only 0.06 times, while qualified institutional buyers bid for just 18,375 shares out of their reserved 1.45 crore shares.

The company's share held a GMP (grey market premium) of just Rs 12, indicating a 3 per cent premium over the upper price band of Rs 402.

Dr Agarwal's Health Care outlook

The eye care specialist is currently the largest eye care service provider by revenue, with a 25 per cent market share in the country's eye care service chain market.

Its comprehensive range of services, covering everything from checkups and consultations to surgeries and the sale of optical and pharmaceutical products, further strengthens its position as a dominant player.

Dr Agarwal's Health Care risks

Factors like stiff competition from leading multi-specialty and single-specialty players, as well as a high concentration of its facilities in just two states (Maharashtra and Tamil Nadu), can potentially hamper the company's growth prospects.

To check the company's historical track record, valuation metrics and key financial ratios, visit our full analysis.

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