Dr Agarwal's Health Care IPO To Go Live On Jan. 29: What GMP Trends Suggest Ahead Of Launch

The initial public offering of Dr Agarwal's Health Care Ltd. has been garnering decent interest from investors in the unlisted market, even before opening for subscription.

The IPO of the eye care services provider is set to open for subscription between Jan. 29 and Jan. 31. As of 9:14 a.m. on Jan. 27, Dr Agarwal's Health Care IPO grey market premium had risen to Rs 32, reflecting an 8% premium over the issue price.

According to InvestorGain, shares of Dr Agarwal's Health Care Ltd. are expected to debut on the bourses at Rs 434 per share if the current trends persist. The GMP trends may witness drastic changes once the IPO opens for subscription.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Dr Agarwal's Health Care IPO consists of a fresh issue of 75 lakh shares totalling Rs 300 crore and an offer for sale of 6.78 crore shares worth Rs 2,727.26 crores. The IPO price band has been set at Rs 382 to Rs 402 per share. The total offer size of Dr Agarwal's Health Care IPO is valued at Rs 3027.26 crore at the upper price band.

The subscription window of Dr Agarwal's Health Care IPO will remain open for bidding between Jan. 29 and Jan. 31. Share allotment in this mainboard issue will be finalised on Feb. 3. Credit of shares into the demat account of successful bidders and initiation of refunds for the no-allottees will be done on Feb. 4.

Shares of Dr Agarwal's Health Care Ltd. are proposed to be listed on the BSE and NSE on Feb. 5.

The company has reserved 50% of the net issue size for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.

Retail investors can submit bids with a minimum lot size of 35 shares, resulting in an investment of Rs 14,070 for a single lot.

Kotak Mahindra Capital Co., Morgan Stanley India Company Pvt. , Jefferies India Pvt., and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers for Dr Agarwal's Health Care IPO whereas Kfin Technologies Ltd. is its registrar.

The net proceeds from the Dr Agarwal's Healthcare IPO will be used to settle debts and unidentified inorganic acquisitions. A portion of the money will be used for general corporate purposes, as per Dr Agarwal's Healthcare's red herring prospectus.

Dr Agarwal's Health Care Ltd. provides a wide array of eye care services, including cataract and refractive surgeries, consultations, diagnoses, non-surgical treatments, as well as the sale of optical products, contact lenses, accessories, and eye care-related pharmaceuticals.

The company has a team of over 700 doctors providing care to patients at the company's facilities across India.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.