Updated: August 4, 2021 11:10:24 am
Krsnaa Diagnostics IPO: The initial public offering (IPO) of Krsnaa Diagnostics will open for subscription on Wednesday, August 4, 2021, at a price band of Rs 933-954 per share of the face value of Rs 5 each. The offer will be available till Friday, August 6, 2021.
Krsnaa Diagnostics is a fast-growing diagnostic chain that provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and teleradiology services to public and private hospitals, medical colleges and community health centers pan-India.
It focuses on the public-private partnership (PPP) diagnostics segment and has the largest presence in the diagnostic PPP segment.
Through the offer, Krsnaa Diagnostics aims to raise a little over Rs 1,213 crore with the help of a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 8,525,520 equity stocks by its existing shareholders. As part of the OFS, Phi Capital will sell 16 lakh equity shares, Kitara will offload 33,40,713 equity shares, Somerset Indus Healthcare Fund I Ltd will offer 35,63,427 equity shares and Lotus Management Solutions will sell 21,380 equity shares.
The proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centers at Punjab, Karnataka, Himachal Pradesh, and Maharashtra, for repayment of loans availed by the company and for general corporate purposes.
At present, the company operated 1,823 diagnostic centers offering both radiology and pathology services in 13 states across the country as of June 2021.
Investors who wish to subscribe to the Krsnaa Diagnostics IPO can bid in a lot of 15 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,310 to get a single lot of Krsnaa Diagnostics. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, August 9, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
JM Financial, DAM Capital Advisors, Equirus Capital and IIFL Securities are the book running lead managers to the IPO while KFin Technologies is the registrar of the issue.
Before heading into the IPO, Krsnaa Diagnostics raised over Rs 537 crore (Rs 5,37,00,05,898.00) from 44 anchor investors in lieu of 56,28,937 equity shares at Rs 954 each, data from the stock exchanges showed.
The anchor investors include the likes of ICICI Prudential Mutual Fund (MF), HDFC Life Insurance Company, SBI Life Insurance Company, Tata MF, Edelweiss MF, Nippon India MF, Aditya Birla Sun Life MF, Kotak Mahindra Life Insurance Company, Max Life Insurance Company and Reliance General Insurance Company among others.
The research team at Anand Rathi Share and Stock Brokers in their IPO note have recommended a “Subscribe” to the offer.
In its report, Anand Rathi Research noted, “The company has strong business operations, which are reflected in its financials. It has exhibited a strong 37.65 per cent CAGR on the sales front over FY2019-21, predominantly led by volumes and partially on the back of pricing. The company is available at the upper end of the IPO price band at 77.7x its FY21 earnings, with a market cap of Rs. 29,941 million. Further on FY21 earnings basis the company is trading below the Industry average of 85.99x. We believe that strong balance sheet position and healthy operating cash flows will enable them to pursue growth opportunities and also fund their strategic initiatives. Hence, we recommend a “Subscribe” on the issue.”
The share allotment is likely to take place on August 11, 2021, and the shares are expected to be listed on August 17, 2021, according to the timeline given in the red herring prospectus (RHP).
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