Last day to subscribe to Dr Agarwal’s Health IPO

The initial public offering of Dr Agarwal’s Health Care will close today for public subscription. The IPO has so far received bids for 0.42 times or 42 per cent, thanks mainly to qualified institutional buyers.

The ₹3,025 crore IPO is at a price band of ₹382-402, and investors can bid for a minimum lot of 35 shares.

The public issue is a mix of fresh issue of up to ₹300 crore and an offer-of-sale up to 6.78 crore shares by the promoters, investors and other selling shareholders. Apart from the promoters, the other selling shareholders are Hyperion Investments Pte (entity of TPG Capital), Claymore Investments (Mauritius) and Arvon Investments Pte, which are wholly-owned subsidiaries of Temasek Holdings.

The offer is being made through the book-building process, wherein not more than 50 per cent of the offer will be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15 per cent for non-institutional investors, and not less than 35 per cent for retail investors.

Both NIIs and retail investors remained lukewarm to the IPO.

The portions reserved for NII was subscribed 0.12 times subscription and retail investors’ 0.24 times. The QIB portion, however, was subscribed 100 per cent. The portions reserved for employees (about 15.8 lakh shares) and shareholder (Dr Agarwal’s Eye: 11.29 lakh shares) were subscribed 0.17 times and 0.25 times, respectively

As part of the IPO, Dr. Agarwal’s Health Care has garnered ₹875.50 crores from anchor investors by allotting 2,17,78,798 shares at ₹402 to anchor investors.

Foreign and domestic institutions participated in the anchor book and included the 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. – ODI, Tiger Pacific Master Fund, Malabar India, Morgan Stanley Asia, Liontrust Investment Funds, Morgan Stanley Asia. Tata MF, Edelweiss MF, LIC MF, Axis Max Life, Aditya Birla Life, and Edelweiss Life Insurance.

The proceeds from its fresh issuance to the extent of ₹195 crore will be utilised for repayment or prepayment in part or full of its borrowings, and the rest for acquisitions and general corporate purposes.