Shares of Dr Agarwal's Health Care Ltd made a muted debut on the stock market on Tuesday as the hospital chain was listed at a mild discount of 1.27 per cent at Rs 396.90 on BSE, against the issue price of Rs 402. However, the stock kicked off its maiden trading session at par, that is the issue price itself.
The listing of Dr Agarwals Health Care has been on the expected lines. Ahead of its listing, shares of Dr Agarwals Health Care saw a sharp correction in the grey market premium (GMP) as it was exchanging hands at a discount of up to Rs 5. However, the GMP stood around Rs 65 before the bidding kicked-off.
The IPO of Chennai-based Dr Agarwals Health Care ran for bidding between January 29 and January 31. It had offered its shares in the price band of Rs 382-402 per share with a lot size of 35 shares. The company raised a total of Rs 3,027.26 crore via IPO, which included a fresh share sale of Rs 300 crore and offer-for-sale (OFS) of up to 6,78,42,284 equity shares.
The issue was overall subscribed only 1.55 times, thanks to the push from qualified institutional bidders (QIBs), whose quota was booked 4.64 times. The allocation for the non-institutional investors (NIIs) and retail investor were undersubscribed at 40 per cent and 41 per cent, respectively. The portions for employees and shareholders were booked 27 per cent and 52 per cent, respectively.
Incorporated in 2010, Dr Agarwal's Health Care offers a comprehensive range of eye care services, including cataract and refractive surgeries, consultations, diagnoses, non-surgical treatments, and the sale of optical products, contact lenses, accessories, and eye care-related pharmaceutical items.
Brokerage firms had a mixed view on the issue. Kotak Mahindra Capital Company, Morgan Stanley India Company, Jefferies India, Motilal Oswal Investment Advisors are the book running lead managers of Dr Agarwal's IPO, while Kfin Technologies is the registrar for the issue.