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NEW DELHI: With the recent debutant Krsnaa Diagnostics trading below its issue price, can a forthcoming IPO from Vijaya Diagnostic Centre attract a good response from investors? Angel Broking has a ‘neutral’ view on the issue. More brokerage views are awaited. Here are key things you should know about the Rs 1,894-crore IPO:

  1. When will Vijaya Diagnostic Centre IPO open for subscription?
    Vijaya Diagnostic Centre IPO will open for subscription on Wednesday, September 1, and will close on Friday, September 3.
  2. What is the price band of Vijaya Diagnostic Centre IPO?
    The price band for Vijaya Diagnostic Centre IPO has been fixed at Rs 522-531.
  3. What is the lot size of Vijaya Diagnostic Centre IPO?
    Investors can subscribe to the initial public offering (IPO) by betting for a lot of 28 shares or in multiples thereof.
  4. What is the issue size of Vijaya Diagnostic Centre IPO?
    The issue comprises an offer for sale of up to 35,688,064 shares by existing shareholders. At the upper end of the price band, the issue size stands at Rs 1,894 crore while the post-issue implied market cap stands at Rs 5,414 crore.
  5. What is the quota reserved for retail investors in Vijaya Diagnostic Centre IPO?
    The quota for retail investors in Vijaya Diagnostic Centre IPO is fixed at 35 per cent of the net offer. QIB quota is fixed at 50 per cent while for NII the quota is reserved at 15 per cent.
  6. Is there any employee quota in Vijaya Diagnostic Centre IPO?
    Yes. A total of 1,50,000 shares will be offered to eligible employees. Such employees will also be offered a discount of Rs 52 per share.
  7. When will the basis of allotment be finalised for Vijaya Diagnostic Centre IPO?
    The finalisation of the basis of allotment is likely by September 8 and the initialisation of refunds is likely by September 9. Meanwhile, credit of shares in the demat account is likely by September 13.
  8. On what date will Vijaya Diagnostic Centre IPO list?
    Vijaya Diagnostic Centre will make its market debut on September 14.
  9. How to check Vijaya Diagnostic Centre IPO allotment status?
    Bidders for the issue can check the subscription status on the online portal of KFintech Private Limited, the registrar to the IPO.
  10. Who are the book running lead managers to the issue?
    ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as book-running lead managers (BRLMs) for the IPO.
  11. What does Vijaya Diagnostic Centre do?
    Vijaya Diagnostic Centre is the largest integrated diagnostic chain in southern India in terms of operating revenue. It offers a comprehensive range of approximately 740 routine and 870 specialized pathology tests, as of June 2021. The company marks its presence in the states of Telangana and Andhra Pradesh, along with National Capital Region and Kolkata through its extensive operational network. As of June 2021, it had 81 diagnostic centres and 11 reference laboratories.
  12. Who are the listed peers of Vijaya Diagnostic Centre?
    Dr Lal Path Labs and Metropolis Healthcare are among Vijaya Diagnostic Centre’s listed peers in India.
  13. How Vijaya Diagnostic Centre performed last year?
    During the year ended June 30, 2021, Vijaya Diagnostic conducted approximately 1.96 million pathology tests and 0.22 million radiology tests for approximately 0.94 million customers. Their tests per customer visit was 2.83, the operating revenue per customer was Rs 1,213.72 and the operating revenue per test was Rs 428.14, all of which were higher than listed regional peers.
  14. Should investors subscribe to Vijaya Diagnostic Centre IPO?
    A total of 96 per cent of the company’s revenue comes from Andhra Pradesh and Telangana. The company conducted 62 lakh pathology tests and 8.9 lakh radiology tests in FY2021. The company reported a good set of numbers in FY21, with PAT rising 37 per cent to Rs 84.90 crore in FY21 from Rs 62 crore in FY20 and revenue 9.7 per cent to Rs 388.5 crore from Rs 354 crore in FY20. “What we saw in the case of Krsnaa Diagnostics IPO was that the asking valuation at the higher end of the price band was expensive compared with peers and post listing, the stock dropped below the issue price. We have a neutral view on Vijay Diagnostic Centre IPO,” Angel Broking said.

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