Temasek, TPG-backed Dr. Agarwal’s Health ends below IPO price in tepid debut
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Temasek, TPG-backed Dr. Agarwal’s Health ends below IPO price in tepid debut

By TEAM VCC

  • 04 Feb 2025
Temasek, TPG-backed Dr. Agarwal’s Health ends below IPO price in tepid debut

Eyecare chain Dr. Agarwal’s Health Care Ltd made a weak stock market debut on Tuesday with its shares ending below the initial public offering price after listing at a discount. 

Shares of the company, which counts Singapore state investment Temasek and US-based private equity firm TPG as investors, listed at Rs 396.90 apiece on the BSE versus the IPO price of Rs 402 apiece. 

The shares traded between Rs 370.10 and Rs 412.75 before closing at Rs 401.55, giving the company a market value of Rs 12,684 crore. This is near the lower end of the valuation range that VCCircle estimated in October last year. 

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The muted debut comes after the company’s IPO failed to attract enough retail and high-net-worth investors. The IPO was covered 1.55 times with institutional investors bidding for 4.64 times their quota. The portion reserved for retail investors was covered only 41% while non-institutional investors bid for 40% of the shares set aside for them. 

Dr. Agarwal’s Health, the parent of Mumbai-listed Dr Agarwal’s Eye Hospital Ltd, opened its IPO for public subscription on January 29 and closed two days later. It had set a price band of Rs 382-402 per share. 

The overall IPO size was Rs 3,027 crore. This comprised a fresh issue of shares by the eyecare chain to raise Rs 300 crore and an offer for sale of 67.84 million shares by Temasek, TPG and other shareholders. Out of this, Temasek and TPG sold 53.99 million shares.  

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Temasek and TPG, both of whom were among the dozen PE-style investors that garnered at least $500 million from India exits in 2024, reaped blockbuster returns by trimming their stake, VCCircle reported earlier. 

Temasek initially invested Rs 270 crore in the company through an affiliate in early 2019. Three years later, Temasek and TPG invested another Rs 1,065 crore via a primary infusion and secondary purchase of shares. TPG led this round with an investment of Rs 825 crore with Temasek chipping in with around Rs 240 crore.   

The two investors doubled down on Dr Agarwal’s Health Care in 2023, investing a total of about Rs 640 crore. TPG led the round again, putting in Rs 400 crore while Temasek invested Rs 240 crore. 

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