Vijaya Diagnostics Centre IPO opens on September 1; check details

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Kedaara Capital-backed Vijaya Diagnostic Centre initial public offer (IPO) is set to hit the markets next week. The diagnostic chain plans to raise Rs 1,895.04 crore through its IPO. Here are all the details about the offer.

Open and close date: The offer will open for subscription on September 01 and the bidding will close on September 03. The anchor book, if any, will open for a day before the issue opening, i.e. August 30.

Price band: The price band for Vijaya Diagnostic Centre has been fixed at Rs 522-531 per share having a face value of Rs 1 per share.

Lot size: Investors can bid for a minimum of 28 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,868 at the higher end of the price band. A retail investor can at max apply for 13 lots or 364 shares for Rs 1,93,284.

Issue size: The Rs 1,895.04 crore public offer comprises is a pure offer for sale (OFS) of 35.6 million shares. Promoter Dr S Surendranath Reddy will sell up to 50,98,296 shares. Investor Karakoram will offload up to 2,94,87,290 equity shares, and investor Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 will sell up to 11,02,478 shares. This will see a stake dilution of 35% by the promoter and existing shareholders.

Objective of issue: Sine the entire issue is an OFS none of the proceeds would be coming to the company’s balance sheet.

What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Vijaya Diagnostic Centre is one of the fastest-growing diagnostic chains in Southern India. The company offers a one-stop solution for pathology and radiology testing services. The company offers around 740 routine tests, 870 specialized pathology tests, 220 basic tests, and 320 advanced radiology tests.

It has an operational network consists of 80 diagnostic centres and 11 reference laboratories spread across 13 cities and towns in the states of Telangana, Andhra Pradesh, National Capital Region, and Kolkata. All Vijaya Diagnostic Centre laboratories hold National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditations, and three diagnostic centres hold Patient Safety & Quality of Care (NABH) accreditations.

For the financial year ended March 31, 2021, the company reported total revenue of Rs 388.59 crore compared to Rs 302.94 crore in FY19. During the same period, the company posted a profit of Rs 84.91 crore in FY21 versus Rs 46.27 crore in FY19.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are Edelweiss Financial Services, ICICI Securities and Kotak Mahindra Capital Company. The registrar to the issue is KFintech.

Issue timeline: The issue is likely to finalize the basis of allotment by September 08, and the initialization of refunds will take place by September 09. While the credit of equity shares to depository accounts of the allottee will be done on September 13. The diagnostics chain is expected to make its stock market debut on September 14, 2021.