Dr. Agarwal’s Health Care share price made a muted market debut on Tuesday, February 4, as the stock was listed at the IPO price of ₹402 apiece on the NSE. On the BSE, it was listed at a 1.27% discount to the issue price at ₹396.90 apiece.
After a flat listing, the stock tumbled further to reach ₹370.20, which is 8% lower than the issue price. The poor market debut was attributed to the modest response to its issue, which opened for bidding between January 29 and January 31.
Following the weak entry on Dalal Street, Sagar Shetty, Research Analyst at StoxBox, advised investors to avoid investing in the shares in the short term and to track their performance in the upcoming quarter.
“Dr. Agarwal Health Care made a flat debut on the bourses, which was largely in line with our expectations. The IPO saw a modest subscription rate of 1.49 times, with weak market sentiment and concerns over valuation weighing on investor interest. The concerns were further compounded by its lower profitability and significant promoter exit via the offer for sale (OFS),” said Shetty.
Prashanth Tapse, Sr. VP of Research at Mehta Equities, said, “Despite the recovering market mood, Dr. Agarwal’s listing was in line with our expectations, with a neutral to negative opening. The offer received modest subscription demand from all investors except QIBs, while other categories like NII, retail, and the employee quota were subscribed below 1x. The listing is justified given the 90% OFS offer, leaving less value for investors on the table.”
Considering the market mood, Prashanth recommends allotted investors continue holding for the long term despite knowing that post-listing will invite short-term volatility. Hence, he advised non-allotted investors to wait and watch for better pricing.
About the Company
Dr. Agarwal’s Health Care Limited, established in 2010, provides a wide spectrum of eye care services, including cataract and refractive surgeries, consultations, diagnostics, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and pharmaceutical items related to eye care.
As of September 30, 2024, the company had a team of 737 doctors catering to patients across its facilities. During this period, it attended to 2.13 million patients and performed 220,523 surgeries. In the first half of the fiscal year ending September 30, 2024, the company served 1.15 million patients and carried out 140,787 surgeries.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
