Krsnaa Diagnostics Limited is one of four companies making its debut in the market with its initial public offering (IPO). The company is eyeing an issue size of Rs 1,213.33 crore next week. Krsnaa Diagnostics was incorporated in 2010 and is dubbed as one of the fastest-growing diagnostic chains in India. It offers its customer base a wide range of diagnostic services such as imaging/radiology services (X-rays, MRI, etc.), routine clinical laboratory tests, pathology, and teleradiology services. The primary target audience for these services are private and public hospitals, medical colleges, and community health centres.
With the Krsnaa Diagnostics IPO just around the corner, here are 10 things you should know about the public issue before it debuts in August.
1) Krsnaa Diagnostics IPO Overview
The Krsnaa Diagnostics issue is eyeing a sum of Rs 1,213 crore on opening day. The IPO consists of a fresh issue as well as an offer for sale (OFS). The fresh issue was listed as aggregating up to Rs 400 at Rs 5 per equity share. The OFS on the other hand was listed as Rs 813.33 crore with 8,525,520 equity shares with the same face value of Rs 5 per share.
2) Krsnaa Diagnostics Grey Market Premium (GMP) and Price Band
The GMP for the company’s IPO was listed as Rs 450 on IPO Watch on July 31. This means that the IPO was trading premiums on the grey market at Rs 1,383 to Rs 1,404 per equity share. This stacks up against the price band of the issue which was listed as Rs 933 to Rs 954 per equity share.
3) Important Pre-IPO Dates
The issue is set to open on August 4. It will remain open for subscription for 3 trading days, upon which it will close on August 6. Any anchor bookings that happen will likely take place on the day before opening, on August 3.
4) Krsnaa Diagnostics Allotment, Listing Date
The basis of allotment will likely happen a day after the company closes its subscription. The date as of now stands as August 11 for allotment. The following day on August 12, the refunds will be initiated. The successful bidders will see their shares credited to their respective Demat accounts on August 13. The listing date is likely to be August 17, however, this is not yet confirmed.
5) IPO Subscription Status (Club Lot Size and Subscription)
The IPO has a minimum lot size of 15 shares with Rs 14,310 as the minimum application amount. The higher end of the issue’s lot stands at 195 shares with a cap of Rs 186,030 as the application amount. In this lot, retail investors have been given an allocation of 13 lots to which they can apply at the upper limit.
As far as investor portions go, the IPO has given qualified institutional buyers (QIBs) a reservation of 75 per cent. The non-institutional investors (NIIs) have a reservation of 15 per cent while the retail investors have a 10 per cent allocation.
6) The Object of the Offer
The company aims to use the proceeds of the public issue to finance the cost of establishing new diagnostics centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra. A certain portion of the funds will go towards the repayment and pre-payment of the company’s borrowings either fully or partially. Lastly, a portion of the proceeds will go towards other general corporate expenses.
7) Promoters and Other Details
The Promoter of the IPO is Rajendra Mutha, who is the Chairman at Krsnaa Diagnostics Limited. The lead managers on the issue will be JM Financials, DAM Captial Advisors, Equirus Capital and IIFL Securities. The official Registrar for the IPO is KFin Technologies Private Limited.
8) Company Profile
Krsnaa Diagnostics Limited is a fast-growing diagnostics chain with its roots in India. It has a vast network of customers that it provides various diagnostic services to. These services include imaging/radiology services (X-rays, MRI, etc.), routine clinical laboratory tests, pathology, and teleradiology services. Even though it has a vast network, its key focus is on non-metro, lower-tier cities and towns. As of December 31, the company has over 1,801 diagnostic centres that offer radiology and pathology services in 13 different cities.
9) Company Financials
The company’s income for the fiscal year ended March 3, 2020, was Rs 271.38 crore. This is an upward trend from its previous year’s Rs 214.31 crore, as mentioned by Angel Broking. Parallelly, the company’s net loss also went up to Rs 111.95 crore from the previous year’s Rs 58.05 crore, the report mentioned.
With that in mind, it is notable that Krsnaa Diagnostics did record an increase in net profit and revenue for the nine-month period ended December 31, 2020. The net profit for this period was Rs 195.93 crore and the revenue was Rs 562.7 crore, according to Angel Broking. This came in light of a sharp decrease in expenditures and higher revenue from operations due to the ongoing pandemic.
10) Competitive Strengths of Krsnaa Diagnostics Limited
Krsnaa Diagnostics has some notable competitive strengths. For one, it is one of the leading diagnostic chains in India. It also has a comprehensive and diverse range of services in the field of diagnostics. It has an extensive market footprint thanks to its intricate network and presence in 13 cities. The company has also shown a good financial track record.
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