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Dr Agarwal's Health Care Lists at 1.27% Discount on BSE, Flat on NSE Despite Strong QIB Support, Shows Mixed Performance


Last Updated: 4th February 2025 - 11:51 am
Dr Agarwal's Health Care Limited, a comprehensive eye care services provider operating since 2010, made a tepid entry into the public markets on Tuesday, February 4, 2025. The company, which provides end-to-end eye care services including surgeries, consultations, and optical products across India, commenced trading on BSE and NSE with a disappointing discount despite strong QIB subscription numbers.
Dr Agarwal's Health Care Listing Details

The company's market debut presented a mixed picture between institutional support and secondary market valuation:
Listing Time & Price: When trading commenced at market open, Dr Agarwal's shares debuted at ₹396.90 on BSE, showing a discount of 1.27% against the issue price of ₹402, while on NSE it listed flat at ₹402. This weak opening came despite the QIB portion being subscribed 4.41 times.
Issue Price Context: The company had priced its IPO between ₹382 and ₹402 per share, ultimately fixing the final issue price at ₹402. The market's response suggests this pricing may have been viewed as aggressive given the valuation metrics.
Price Evolution: By 11:18 AM IST, the stock showed further weakness, trading at ₹380.90, representing a loss of 4.03% from its previous close after hitting an intraday low of ₹376.40.
First-Day Trading Performance of Dr Agarwal's Health Care
The trading activity showed active participation with mixed sentiment:
Volume and Value: Within the first few hours, trading volume reached 7.19 lakh shares, generating a turnover of ₹28.54 crore, indicating significant investor interest.
Demand Dynamics: The stock's trading pattern showed buy orders for 2,23,982 shares against sell orders for 2,01,756 shares, with 65.20% of traded quantity marked for delivery.
Market Sentiment and Analysis
- Market Reaction: Weak opening followed by continued pressure
- Subscription Rate: The IPO had been subscribed 1.49 times overall
- Pre-listing Interest: Anchor investors had invested ₹875.51 crore before the public issue
Growth Drivers and Challenges
Expected drivers of future performance:
- Largest eye care provider in India
- Comprehensive service offering
- Asset-light hub-and-spoke model
- Strong clinical excellence
- Doctor-led management team
- Proven track record in acquisitions
Potential challenges:
- Aggressive valuation metrics
- Competitive market dynamics
- High proportion of OFS
- Working capital requirements
- Geographic concentration risk
- Regulatory compliance costs
Utilisation of IPO Proceeds
The ₹3,027.26 crore raised through combined fresh issue (₹300 crore) and offer for sale (₹2,727.26 crore) will be used for:
- Repayment of borrowings
- General corporate purposes
- Unidentified inorganic acquisitions
Financial Performance
The company has shown steady growth:
- Revenue of ₹1,376.45 crore in FY2024
- H1 FY2025 (ended September 2024) showed revenue of ₹837.94 crore with PAT of ₹39.56 crore
- Net Worth of ₹1,502.67 crore as of September 2024
- Total borrowings of ₹373.68 crore
- Total assets of ₹3,393.41 crore as of September 2024
As Dr Agarwal's begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and improve profitability metrics. The weak listing and subsequent trading pattern suggest investors are concerned about valuation multiples, particularly given the high proportion of offer for sale component. The company's ability to execute its expansion plans while maintaining operational efficiency will be crucial for potential price recovery and long-term investor confidence.
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