Krsnaa Diagnostics has finalized its IPO date and will debut on the market on Wednesday. The IPO, which is scheduled to open on August 4, will close its subscription on August 6. All anchor bookings will take place on August 3, one day before the IPO opens for the subscription. The issue’s price range was Rs 933 to Rs 954 per share with a face value of Rs 5 per share. This is an issue IPO built in book. The issue carries a gray market premium of Rs 400, suggesting that the shares are trading for a premium of Rs 1,333 to Rs 1,354 per share in the unlisted market.
The Krsnaa Diagnostics IPO has a lot size of at least 15 shares with an accompanying request amount of Rs 14,310. On the upper end of the lot, the size is 195 shares with a request amount. of Rs 186,030. Retail investors for the issue can apply for up to 13 lots at the upper end of the lot size. In terms of investor allowances, however, the retail share is only 10 percent. Qualified Institutional Buyers (QIB) have a 75 percent reserve and Non-Institutional Investors (NII) have a 15 percent IPO reserve.
Krsnaa Diagnostics is looking to raise a total of Rs 1,213.33 crore through its public issue. The issue itself consists of a new issue of Rs 400 crore as well as an offer to sell (OFS) which totals Rs 813.33 crore with 8,525,520 shares with a par value of Rs 5 per share.
Speaking about the company and the growth it has experienced, Ajit Mishra, vice president of research at Religare Broking, said: “The size of the diagnostics industry is estimated to be around Rs. 710 billion as of today. in FY 21, registering a healthy 13% to 14% CAGR in FY 17-FY 21, echoing the growth in healthcare delivery services. The industry is expected to grow by around 15% and reach a value of Rs. 920 billion FY23. This would be driven by an increased demand for inpatient and outpatient treatment. In addition, as literacy rates and disposable incomes increase, individuals increasingly demand better health facilities and better quality of care, resulting in a sharp increase in the volume of inpatient and outpatient treatment. The increase in demand for healthcare has also been driven by the increase in urbanization and lifestyle-related diseases, such as heart disease, diabetes and cancer, prompting many service providers to health to improve their offers in metropolitan areas and level I and II cities. . “
The company plans to use the net proceeds of the IPO to fund the cost of establishing diagnostic centers in Punjab, Karnataka, Himachal Pradesh and Maharashtra. The remainder of the funds will be used to repay and prepay the company’s borrowings, in whole or in part. Part of the proceeds will also be used for general corporate purposes.
The company was incorporated in 2010 and has been dubbed one of the fastest growing diagnostic chains in India. It offers a diverse range of diagnostic services including imaging / radiology (X-ray, MRI, etc.), routine clinical laboratory testing, pathology and teleradiology services. The company’s main customers are private and public hospitals, medical schools and community health centers. Krsnaa diagnostics has some key strengths that make it an attractive IPO to subscribe to. For example, it is one of the biggest differentiated diagnostics providers in India which also offers a wide variety of services for the same. It also has a strong brand image that is based on affordable prices and quality health services. The company has a strong market presence nationwide as it is present in around 13 cities across the country.
Should you subscribe to the initial public offering of Krsnaa Diagnostics?
Financially, the company has managed to maintain a strong performance. The overall income of the company for the fiscal year ended March 31, 2020 was Rs 271.38 crore. This was up from the previous year’s Rs 214.31 crore. In FY20, the company saw its net losses increase from Rs 58.05 the previous year to Rs 111.95 crore. However, Krsnaa Diagnostics saw a sharp drop in expenses and an increase in income. The net profit and revenue recorded for the nine month period ended December 31, 2020 were Rs 195.93 crore and Rs 562.7 crore respectively. at the start of the pandemic.
“Krsnaa is well positioned to benefit from growing industry trends with its scale, strong brand value and large footprint across India. In addition, its PPP agreements, to deploy diagnostic centers for its radiology and pathology services, are generally long-term contracts that guarantee the visibility of revenues from its operations. In the future, the company plans to expand its network of diagnostic centers and also expand its diagnostic service offering. It also plans to grow its digital footprint and continue to focus on improving profitability and efficiency. Financial performance has been healthy for the company. With promising growth prospects for the industry coupled with the strong track record of running the business, we have a positive outlook for the business for the long term, ”said Mishra.
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