Vijaya Diagnostic Centre’s ₹1,895-crore initial public offer (IPO) will open on September 1 at a price band of ₹522-531 a share.

Announcing this at a press conference on Thursday, S Suprita Reddy, Chief Executive Office, said the IPO will conclude on September 3.

The Hyderabad-based company’s IPO is for the sale of 35,688,064 equity shares by the promoter S Surendranath Reddy and investors Karakoram Ltd and Kedaara Capital Alternative Investment Fund — Kedaara Capital AIF I.

The initial share sale will see stake dilution of 35 per cent by the promoter and existing shareholders. The promoter and promoter group own 59.78 per cent shareholding in the company including Reddy’s 37.78 per cent stake.

Goldman Sachs, JP Morgan among 16 in fray to manage LIC’s public offer

As part of the offer, Reddy will sell 50.98 lakh equity shares, Karakoram will offload 2.95 crore equity shares and Kedaara Capital will divest 11.02 lakh shares. Karakoram and Kedaara Capital hold 38.56 per cent and 1.44 per cent stake, respectively, in Vijaya Diagnostic.

Half the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the rest for non-institutional investors. Investors can bid for a minimum of 28 equity shares and in multiples of 28 thereafter.

IPO rush: Riding the margin financing wave

ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as investment bankers to advise the company on its IPO.

Vijaya Diagnostic Centre offers a one-stop pathology and radiology testing services through its network of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, the National Capital Region and Kolkata. It plans to expand in its core markets of Telangana and AP, and adjacent markets in south India. It is also eyeing east India markets and has set up a hub in Kolkata.

According to the draft red herring prospectus, or offer document, the Indian diagnostics market was valued at ₹71,000-73,000 crore in FY 2021, and projected to touch ₹92,000-98,000 crore by FY 2023, driven by a rise in health awareness, disposable incomes, demand for better healthcare facilities and quality care of individuals, and spending on preventive care and wellness.

The diagnostics market in Telangana and Andhra Pradesh is projected to grow to ₹12,000-13,000 crore by FY 2023, it said.

comment COMMENT NOW