Vijaya Diagnostic Centre IPO will open for subscription on 1 September 2021 and close on 3 September. The concern is completely an supply-for-sale (OFS) of 3.56 crore shares by the promoting shareholders, comprising up to 50.98 lakh shares by Dr S Surendranath Reddy, up to 2.94 crore equity shares by Karakoram Ltd and up to 11.02 lakh shares by Kedaara Capital Alternative Investment Fund — Kedaara Capital AIF 1. The public concern also involves the reservation of up to 1.5 lakh equity shares for eligible staff.
ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as investment bankers for advising the corporation on its IPO. KFin Technologies Private Ltd is the registrar to the concern. Upon prosperous listing, Vijaya Diagnostic Centre will join the likes of Dr. Lal Path Labs, and Metropolis Healthcare. The market peer group P/E ratio stands at 90.8, and the weighted typical on return on net worth is at 23.14 per cent.
Vijaya Diagnostic Centre mentioned that as the supply consists only of an supply for sale by the Selling Shareholders, there will be no transform in the net worth post-completion of the supply. Kedaara Capital-backed Vijaya Diagnostic Centre presents one-quit answer for pathology and radiology testing services to buyers by way of its in depth 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 economic year ended March 2021, the corporation posted a profit of Rs 84.91 crore compared to Rs 62.5 crore in the preceding fiscal. Its total revenue rose to Rs 388.59 crore from Rs 354.18 crore. The corporation will not obtain any proceeds from the OFS. The Selling Shareholders will obtain the net proceeds from the OFS.
Diagnostic services at the moment have an 8 to 14% share in the all round healthcare spending on account of variation among rural and urban across institutions such as government-owned, charitable/trust-based and private. With diagnostic services becoming the cornerstone for recommending requisite therapies, as properly as monitoring recovery posttreatment, the market has posted wholesome development more than the previous couple of years. Between fiscal years 2020 and 2023, the market is anticipated to return to a wholesome development trajectory of 12 to 13% CAGR, reaching ₹ 920 to 980 billion. The market is on the other hand anticipated to accomplish a greater CAGR among fiscal year 2021 and fiscal year 2023 in the variety of 14 to 16% on account of a low development in fiscal year 2021 due to the COVID-19 pandemic effect on the market.