Dr Agarwal’s Health Care is set to close its initial public offering for public subscription today. The IPO has garnered bids for 0.42 times or 42%, primarily driven by qualified institutional buyers. Priced at a band of ₹382-402, investors can bid for a minimum lot of 35 shares.
The ₹3,025 crore IPO comprises a fresh issue of up to ₹300 crore and an offer-for-sale of up to 6.78 crore shares by the promoters, investors, and other selling shareholders. The selling shareholders include Hyperion Investments Pte (a TPG Capital entity), Claymore Investments (Mauritius), and Arvon Investments Pte (wholly-owned subsidiaries of Temasek Holdings).
The offer is being conducted through the book-building process, with allocation of not more than 50% for qualified institutional buyers, at least 15% for non-institutional investors, and a minimum of 35% for retail investors.
Despite the strong interest from QIBs, both non-institutional investors and retail investors have shown lukewarm response to the IPO. NII subscription stands at 0.12 times, while retail investors have subscribed 0.24 times. On the other hand, the QIB portion is fully subscribed. Additionally, the portions reserved for employees and Dr Agarwal’s Eye shareholders were subscribed 0.17 times and 0.25 times, respectively.
In the anchor book, Dr. Agarwal’s Health Care raised ₹875.50 crores by allotting 2,17,78,798 shares at ₹402 to anchor investors. Foreign and domestic institutions, such as the Government of Singapore, Monetary Authority of Singapore, and Fidelity, participated in the anchor book.
The proceeds from the fresh issuance, amounting to ₹195 crore, will be utilized for repayment or prepayment of borrowings, as well as for acquisitions and general corporate purposes.
The IPO is scheduled to close today and has received a mix of interest from various investor categories, with qualified institutional buyers showing the strongest response.
