26 Aug , 2021 By : Kanchan Joshi
Healthcare chain Vijaya Diagnostic Centre's initial public offering (IPO) will open for subscription next week on Wednesday, September 1 and the three-day public issue will conclude on September 3. The company has fixed the IPO fixed the price band Rs522-531 per share.
The initial public offer (IPO) is entirely an offer for sale (OFS) of 35,688,064 equity shares by the promoters, Dr S Surendranath Reddy and investors Karakoram Ltd and Kedaara Capital Alternative Investment Fund - Kedaara Capital AIF 1. The initial share-sale will see stake dilution of 35% by promoter and existing shareholders.
As per market observers, Vijaya Diagnostics grey market premium (GMP) is in the range of Rs35-40. The grey market is an unofficial platform, wherein trading starts after the announcement of the IPO price band till the listing of the shares.
Vijaya Diagnostic Centre plans to raise around Rs1,895 crore, on the upper band price. The shares of the company are likely to list on the stock exchanges on September 14. 50% of the offer size is reserved for qualified institutional buyers (QIBs), whereas up to 35% for retail investors and remaining 15% for non-institutional investors (NIIs).
Kedaara Capital-backed Vijaya Diagnostic Centre offers one-stop solution for pathology and radiology testing services to customers through its extensive network, which consists of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, and the National Capital Region and Kolkata.
For the financial year ended March 2021, the company posted a profit of Rs84.91 crore compared to Rs62.5 crore in the preceding fiscal. Its total income rose to Rs388.59 crore from Rs354.18 crore. ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as investment bankers for advising the company on its initial share sale.
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