Krsnaa Diagnostics IPO subscription sees hike on Day 2, subscribed 5.35 times

After opening the bidding on Wednesday, the initial public offer (IPO) of Krsnaa Diagnostics was subscribed 5.35 on Day 2 of its subscription. Earlier, it was subscribed two times on the first day. 

Krsnaa Diagnostics IPO

Krsnaa Diagnostics opened its bidding for IPO on Wednesday with 71,12,099 shares on offer. As per the latest data available with the NSE, the IPO received bids for 3,80,33,730 shares on the Rs 1,213.33 crore IPO.

Dividing it into different categories, it can be seen that the Qualified Institutional Buyers portion was subscribed 50% followed by non-institutional investors 4.71 times, and the retail investors 21.74 times. 

The fresh issue by the diagnostics company is of Rs 400 crore and has provided an offer for sale of up to 85,25,520 equity shares by the existing shareholders including Phi Capita, Kitara, Somerset, and Lotus Management Solutions.

The price band set by the diagnostic services is Rs 933-954 per share and seeks a market value of Rs 2,994 crore. The company has already raised Rs 537 from its anchor investors. 

The bidding started on Wednesday, 4 August and will close on Friday, 6 August. 

Krsnaa Diagnostics' plan after the IPO

The diagnostic services provider looks forward to using Rs 150 crore from the net proceeds for financing the establishment of diagnostic centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra. Further, the company will use 146.08 crores for repayment of the loan and general corporate purposes. The diagnostics company has an overall loan of Rs 231.7 crore as of March 2021. 

Krsnaa Diagnostic is a diagnostic services provider providing a range of technology-enabled diagnostic centres, services including imaging and pathology, clinical laboratory and teleradiology services, public and private hospitals, medical colleges, and community health centres all over India. It also provides a wide range of imaging services and clinical laboratory tests including both routine and specialized tests/studies and profiles. These tests are usually used for predicting, detecting. diagnostic screening, confirming, and monitoring of diseases. 

The company also focuses on building the public-private partnership (PPP) diagnostics segment. It has the largest presence in the diagnostic PPP segment.

(Image Credits: PTI/Pixabay)