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Vijaya Diagnostic Centre is set to open for IPO subscription on September 1 and close on September 3, 2021. The company plans to raise Rs 1,895.04 crore through an offer for sale of 356.88 lakh equity shares by promoters, and investors Kedaara Capital and Karakoram. It has fixed the price band between Rs 522 and Rs 531 per equity share.
This offer includes a reservation of up to 1,50,000 equity shares for eligible employees and such employees will be offered at a discount of Rs 52 per share.
Company Summary
Vijaya Diagnostic Centre, established in 1981, is one of the fastest-growing diagnostic chain by revenue for fiscal year 2020. The company is into pathology and radiology testing services through their extensive operational network in India. Vijaya has 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh and in the National Capital Region and Kolkata.
For the three months ended June 30, 2021, the firm conducted approximately 1.96 million pathology tests and 0.22 million radiology tests for approximately 0.94 million customers.
The company’s core geographies are Telangana and Andhra Pradesh as they got 96.2% of its revenue from these locations. During fiscal year 2020, the company’s tests per customer visit was 2.83, operating revenue per customer was Rs 1,213.72 and operating revenue per test was Rs 428.14.
Company Strengths
- Largest and fastest growing diagnostic chain with dominant position in South India
- High brand recall driving individual consumer business share and customer stickiness
- Strong technical capabilities, quality infrastructure and state of the art medical technology with robust IT infrastructure
- Well positioned to leverage growth opportunities in Indian diagnostics industry
- Integrated diagnostics provider at affordable price with focus on superior quality standards
Company Promoter
Dr. S. Surendranath Reddy is the promoter of Vijaya Diagnostics. He is also the executive chairman of the company and has more than four decades of experience in integrated diagnostics business and is a radiologist.
Financial Summary
For the three months ended June 30, 2021, its total income was Rs 1,259.70 million, profit for the period was Rs 333.25 million, cash generated from operations was Rs 509.45 million, adjusted EBITDA was Rs 568.55 million. The financial details for the last three years are given below.
Particulars | For the year/period ended (Rs in million) | ||
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 |
Total Assets | 5,409.40 | 4,822.56 | 4,064.30 |
Total Revenue | 3,885.93 | 3,541.82 | 3,029.44 |
Profit After Tax | 849.11 | 625.07 | 462.72 |
Purpose of the IPO
The company plans to use the net Proceeds for the following purposes
- To carry out the offer for sale and the proceeds will go to the selling shareholders
- To achieve the benefits of listing the equity shares on the stock exchanges
- To enhance the company’s visibility and brand image
IPO Details
|
IPO Opening Date |
Sep 1, 2021 |
|
IPO Closing Date |
Sep 3, 2021 |
|
Issue Type |
Book Built Issue IPO |
|
Face Value |
Re 1 per equity share |
|
IPO Price |
Rs 522 to Rs 531 per equity share |
|
Market Lot |
28 Shares |
|
Min Order Quantity |
28 Shares |
|
Listing At |
BSE, NSE |
|
Issue Size |
35,688,064 equity Shares of Re 1 worth Rs 1,895.04 crore |
|
Offer for Sale |
35,688,064 equity Shares of Re 1 worth Rs 1,895.04 crore |
|
Employee Discount |
Rs 52 per share |
IPO Lot Size
|
Application |
Lots |
Shares |
Amount (Cut-off) |
|
Minimum |
1 |
28 |
Rs 14,868 |
|
Maximum |
13 |
364 |
Rs 1,93,284 |