Krsnaa Diagnostics IPO Review 2021: The Krsnaa Diagnostics IPO will hit the Indian markets from August 4th to August 6th. They aim to raise Rs. 1,213.33 crores through a public offering.

In this article, we look into important information on the Krsnaa Diagnostics IPO and find out the possible prospects of the company.

Krsnaa Diagnostics IPO Review- About the Company

Krsnaa Diagnostics Logo

Founded in 2010, Krsnaa Diagnostics Ltd. offers diagnostic services to hospitals, medical colleges, and community health centers. The company offers diagnostic services like imaging/radiology services (X-rays, MRI, etc.), routine clinical laboratory tests, pathology, and teleradiology services.

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Krsnaa also operates India’s largest teleradiology reporting hubs in Pune. This allows it to process large volumes of Xrays CT scans and MRI scans 24×7 throughout the year. It further enables them to serve patients in remote locations. 

  

Krsnaa Diagnostics Total Assets over the years

Krsnaa Diagnostics is also one of the fastest-growing diagnostic chains in India. This can be seen in terms of the number of tests conducted from FY 2017-20.

Since 2010 the company has served more than 2.3 crore patients. Financially too the company is the fastest-growing in terms of profit from FY 2017-20.

Krsnaa Diagnostics Profits over the years | Krsnaa Diagnostics IPO

The rates charges for diagnostic services at Krsnaa are lower than that of its competitors. This further gives them an edge helping them achieve higher revenues.

As of June 2021, Krsnaa expanded from 20 to 26 diagnostic centers in a span of 4 months. The company also has 1,787 diagnostic centers across the country in public-private partnership (PPP) agreements with public health agencies.

The company also has successfully increased its profits from  Rs -1,119.51 crore in 2020 to Rs 1,849.29 crore in 2021. 

Grey Market Premium (GMP) of Krsnaa Diagnostics

The shares of Krsnaa Diagnostics Ltd. traded at around a 40% premium in the grey market before the IPO. The shares traded at a price of Rs. 1,364 giving them a premium of Rs. 410 over their issue price band of Rs 933-954 per share.

Krsnaa Diagnostics IPO Review – Key IPO Information

Ravi Kant Jaipuria, Varun Jaipuria, and RJ Corp Limited are the promoters of the company. The issue also includes an offer for sale of Rs. 813.33 crores.

Investors participating in the offer for sale include PHI Capital Trust-PHI Capital Growth Fund, Kitara PIIN, Somerset Indus Healthcare Fund I, and Lotus Management Solutions.

The company has appointed JM Financial, DAM Capital Advisors, Equirus Capital, and IIFL Securities as the lead managers to the issue. KFintech Pvt. Ltd. has been appointed as the registrar to the issue. 

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ParticularsDetails
IPO Size₹1,213.33 Cr
Fresh Issue₹400.00 Cr
Offer For Sale(OFS)₹813.33 Cr
Opening DateAug 4, 2021
Closing DateAug 6, 2021
Face Value₹5 per equity share
Price Band₹933 to ₹954
Lot Size15 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateAug 17, 2021

Purpose of the Krsnaa Diagnostics IPO

The proceeds from the IPO will be used to:

  • To finance the cost of establishing diagnostics centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra.
  • Repayment/pre-payment of firm’s borrowings fully or partially.
  • General corporate purposes.

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In Closing 

The IPO opens on 4th August and closes on 6th August 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Krsnaa Diagnostics Ltd.

That’s all for this post. Do let us know what you think of the Krsnaa Diagnostics Ltd. IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!