Hyderabad-based Vijaya Diagnostic is eyeing to raise Rs 1,895 crore through its primary offering. The issue entirely consists of an offer for sale (OFS) by promoters and existing shareholders of the company.
The promoter of the company S. Surendranath Reddy will offload 5,098,296 equity shares in the OFS. Existing investors including Karakoram (29,487,290 equity shares), and Kedaara Capital AIF 1 (1,102,478 equity shares) will also participate in the share selling process.
Investors can bid for a minimum of 28 equity shares and in multiples of 28 shares thereafter. The issue closes on Friday, September 3, for subscription.
The company has reserved 1.5 lakh equity shares for its eligible employees, who will be given a discount of Rs 52 per equity shares in the bidding process.
Vijaya Diagnostic Centre is one of the fastest growing diagnostic chains in India by revenue for fiscal year 2020. 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.
50 per cent portion of the net issue is reserved for qualified institutional buyers (QIBs), whereas 15 per cent stake will be allotted to non-institutional investors (NIIs). Retail investors will have 35 per cent of the issue size ear-marked for them.
The company said that the price-to-earnings ratio based on diluted EPS for FY2021 at the higher end of the price band is 64.29, whereas the industry average P/E ratio is 90.8.
ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as book running lead managers (BRLMs) of the issue. KFin Technologies is the registrar of the issue.
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