The IPO (Initial Public Offering) of Vijaya Diagnostic ended on September 3 and the allotment of shares was finalised on September 9. The public offering which has a price band of Rs 522-Rs 531 per equity share is now waiting for listing on Indian bourses i.e. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The IPO is likely to make its debut on Tuesday, September 14.
According to NSE data, the shares reserved for Retail Individual Investors (RIIs) was subscribed 1.09 times. Qualified Institutional Buyers (QIBs) shares were subscribed 13.07 times, while that for Non-institutional investors (NIIs) were subscribed 1.32 times.
In the grey market, Vijaya Diagnostic shares were trading at minus 15. On Thursday, Vijaya Diagnostic IPO was minus 10. According to Grey Market Premium (GMP), the shares are likely to list at around 516.
The Rs 1,895-crore was a complete offer for sale (OFS) by the promoter and investors. This includes 5.09 million shares by promoter S Surendranath Reddy, 29.48 million by investor Karakoram, and 1.1 million shares by Kedaara Capital AIF 1. The funds generated by the IPO will go to them.
The revenues and net profit are good from the diagnostic chain and RoCE (Return on Capital Employed) pre cash is at a high 42% for FY 2021. In the first quarter of FY22, the company recorded an exceptional performance due to the COVID-19 situation.
Although the company, which operates in Telangana and Andhra Pradesh, is a smaller entity in comparison with competitors like SRL, Thyrocare, SRL, and Metropolis. However, it has a considerable share in those markets. The IPO can open either way, but due to its healthy fundamentals, one can expect good returns in the near future.
One of the rapid growing diagnostic chains in Southern India, Vijaya Diagnostic Centre offers pathology and radiology services. It has 81 centres and 11 reference laboratories spread across 13 cities in Telangana, Andhra Pradesh, Kolkata and NCR.
According to the CRISIL report, the value of the diagnostics market in India currently stands at Rs 71,000 crore to Rs 73,000 crore which is expected to grow to Rs 92,000 to Rs 98,000 crore by FY23.