Vijaya Diagnostics Centre IPO Review 2021: Vijaya Diagnostics Centre Ltd. will be the second IPO to hit the markets this month. The IPO will be open from September 1st to September 3rd. They aim to raise Rs 1,895.04 crores through a public offering.
In this article, we look into important information on the Vijaya Diagnostics Centre IPO and find out the possible prospects of the company. Keep reading!
Vijaya Diagnostics Centre IPO Review – About the Company
Founded in 1981, Vijaya Diagnostics Centre is the fastest diagnostic chain in southern India and the largest in terms of operating revenue.
The company offers various pathology and radiology testing services. They offer 740 routine tests, 870 specialized pathology tests, 220 basic tests, and 320 advanced radiology tests.
In addition to this Vijaya Diagnostics also offers various customized health and wellness packages. These have made Vijaya Diagnostics a one-stop solution for these diagnostic services.
For the financial year 2020-21 the company conducted approx. 6.20 million pathology tests and 0.89 million radiology tests for approximately 2.63 million customers.
The company is present across 13 cities and towns in the states of Telangana, Andhra Pradesh, National Capital Region, and Kolkata through its 80 diagnostic centres and 11 reference laboratories.
All of Vijaya diagnostic centres held accreditation from National Accreditation Board for Testing and Calibration Laboratories (NABL). In addition to this 3 of the diagnostic centres hold accreditation for Safety and Quality of care from NABH.
An important point to consider is that despite having its presence across various states 96.2% of its revenue comes from Hyderabad, with the remaining coming from other Andhra and Telangana regions.
This market still has great prospects as the market in these 2 states is expected to grow to Rs.12,000 -Rs.13,000 crore by 2023.
The company increased its profits consistently from Rs, 46.3 crores in FY19, Rs. 62.5 crore in FY20 to Rs. 84.91 crores in FY21. The company made revenues of Rs. 376.75 crores in FY21. Individual consumer businesses contributed 92% of the revenue from operations.
Vijaya Diagnostics Centre IPO Review – Grey Market Premium
The shares of CarTrade Tech traded at around a 5.6% premium in the grey market before the IPO. The shares traded at a price of Rs.552-561 giving them a premium of Rs. 30 over their issue price band of Rs 522-531 per share.
Vijaya Diagnostics Centre IPO Review – Key IPO Information
S Surendranath Reddy is the promoter of the company holding a 37.78% stake in Vijaya Diagnostics. Other major shareholders include Karakoram, Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1, holding a 38.56% and 1.44% stake respectively.
The entire IPO is an offer for sale and all the funds raised will go to the selling shareholders. Promoter S Surendranath Reddy will sell 5.09 million shares with Karakoram and Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 selling 29.48 million and 1.1 million shares respectively.
They have appointed ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company as the book running lead managers to the issue. KFintech Private has been appointed as the registrar to the issue.
|IPO Size||₹1,895.04 Cr|
|Offer For Sale(OFS)||₹1,895.04 Cr|
|Opening Date||Sep 1, 2021|
|Closing Date||Sep 3, 2021|
|Face Value||₹1 per equity share|
|Price Band||₹522 to ₹531 per equity share|
|Lot Size||28 Shares|
|Minimum Lot Size||1|
|Maximum Lot Size||13|
|Listing Date||Sep 14, 2021|
Vijaya Diagnostics Centre IPO Review – Purpose of the IPO
The proceeds from the IPO will be used for:
- Offer For Sale (OFS)
- Achieve listing benefits.
In this post, we covered the Vijaya Diagnostics Centre IPO Review. The IPO opens on 1st September and closes on 3rd September 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 the company.
Do let us know what you think of the Vijaya Diagnostics Centre 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.