Krsnaa Diagnostics filed draft papers with the market place regulator Securities and Exchange Board of India (Sebi) for an initial public providing (IPO). The public challenge comprises a fresh challenge of equity shares worth Rs 400 crore and an present-for-sale (OFS) of 94 lakh equity shares of a face worth of Rs 5 per share by current shareholders and promoters. The important stakeholders participating in the OFS are Phi Capital Trust’s Phi Capital Growth Fund-I (16 lakh equity shares), Kitara PIIN 1104 (33.40 lakh shares), Somerset Indus Healthcare Fund (44.54 lakh equity ) and Lotus Management Solutions (21,380 shares). The book operating lead managers to the IPO are JM Financial, DAM Capital Advisors, Equirus Capital Private Ltd, and IIFL Securities, even though the registrar to the challenge is KFin Technologies Private Ltd. Equity shares are anticipated to be listed on BSE and NSE.
Key facts of Krsnaa Diagnostics IPO
– Krsnaa Diagnostics business listed peers are Metropolis Healthcare and Dr. Lal Pathlabs Ltd. The typical business P/E ratio is 97.18x.
– Krsnaa Diagnostics has planned to use the net proceeds towards financing the price of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh and Maharashtra worth Rs 150.8 crore. While Rs 125.7 crore will be employed for repayment and/or pre-payment in complete or in component of particular borrowings availed by the enterprise and towards common corporate purposes.
– For the nine months ended December 31, 2020, Krsnaa Diagnostics reported a profit of Rs 195 crore, even though income from operations stood at Rs 300 crore.
– Krsnaa Diagnostics in consultation with its book-operating managers may perhaps look at a pre-IPO placement of Rs 200 crore from anchor investors, according to DRHP.
– The enterprise has skilled heavy demand for PCR testing as a outcome of the COVID-19 pandemic, which has had a positive influence on its all round testing volume, the duration and level of the demand for, and reimbursement for, COVID-19 molecular testing was uncertain.
– Krsnaa Diagnostics may perhaps also encounter an adverse influence on money collections and provide chain disruptions, like shortages, delays and value increases in testing gear and supplies, as a outcome of the influence of the COVID-19 pandemic.
– The diagnostic firm operated more than 1,800 diagnostic centres across 13 states as of December 31, 2020. It also operates a teleradiology reporting hub in Pune. Each of its diagnostic centres and specifically the teleradiology reporting hub is vital to its operations.
– Krsnaa Diagnostics competitors consist of diagnostic healthcare service providers in India, hospital-based diagnostic centres, independent clinical laboratories, other smaller sized-scale providers of diagnostic services (with more established nearby and regional presence in particular geographies) such as pathology, radiology laboratories and preventive care providers as effectively as international service providers which may perhaps establish and expand their operations in future.
– The enterprise depends on third-party vendors and suppliers to procure its imaging gear, testing gear and reagents and it enters into contractual arrangements with them.