MUMBAI: The institutional part of the Rs 3,027-crore initial public offering (IPO) for Chennai-based Dr Agarwal's Health Care was fully subscribed on day 2 of the offer with anchor investors doubling down here also, sources said. Usually in most IPOs, the institutional players and the high net-worth investors come in on the last day (day 3) of the offer.
On Thursday, according to data from BSE, the whole offer was sub scribed 42 per cent with the institutional part subscribed fully, the retail portion was subscribed 23 per cent and the HNI part 12 per cent.
In the run up to the offer, on Jan 28, the company had raised Rs 875.5 crore from a host of anchor investors, a mix of marquee global and domestic money managers. The company had sold nearly 2.2 crore shares at a per-share price of Rs 402.
Foreign and domestic institutions who had participated in the anchor portion included government of Singapore, Monetary Authority of Singapore, government pension fund global, Invesco India midcap fund, Fidelity, The Nomura Trust, Ashoka Whiteoak MF, Motilal Oswal Small Cap Fund, Canara Robeco MF, VQ Fastercap Fund, The Prudential Assurance Co, HSBC Global Investment Fund, 360 One Equity Opportunity Fund, Goldman Sachs (Singapore) PTE, Tiger Pacific Master Fund, Morgan Stanley Asia and several others.
According to a report published by SBI cap securities, Dr Agarwal's Health Care IPO is fairly priced at an EV/EBITDA of 33.9, which is the lowest among recently listed hospital IPOs, as the ratio suggests that the company is generating strong earnings relative to its enterprise value, making it a potentially lucrative investment opportunity.
As of September 30, 2024, the company had 193 facilities across India, growing consistently from 106 in FY2022 to 136 in FY2023, reaching 180 in FY2024. Internationally, the company commenced operations in 2012 and now operates 16 facilities across nine African countries.
The IPO, priced in the Rs 392-402 per share, will close on Jan 31.
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