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
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.
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 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.
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.
|IPO Size||₹1,213.33 Cr|
|Fresh Issue||₹400.00 Cr|
|Offer For Sale(OFS)||₹813.33 Cr|
|Opening Date||Aug 4, 2021|
|Closing Date||Aug 6, 2021|
|Face Value||₹5 per equity share|
|Price Band||₹933 to ₹954|
|Lot Size||15 Shares|
|Minimum Lot Size||1|
|Maximum Lot Size||13|
|Listing Date||Aug 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.
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!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.