Kedaara Capital-backed Vijaya Diagnostic Centre IPO to open on September 1


Private equity firm Kedaara Capital-backed Vijaya Diagnostic Centre will open its initial public offering (IPO) for subscription on September 1. The issues closes on September 3.

The issue is entirely an offer for sale (OFS) of 3,56,88,064 shares by shareholders, including Kedaara Capital, and promoters.

Vijaya Diagnostic Centre is the second such health chain to launch IPO in 2021. Earlier this month, Krsnaa Diagnostics raised Rs 1,213.33 crore through its public offer.

Promoter Dr S Surendranath Reddy will sell up to 50,98,296 shares. Investor Karakoram will offload up to 2,94,87,290 equity shares, and investor Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 will sell up to 11,02,478 shares.

The company has reserved 1.5 lakh shares for its employees who may get them at a discount to final issue price.

The offer will constitute at least 35 percent of post-offer paid-up equity share capital of the company.

Promoter and promoter group hold 59.78 percent stake in the company, including Dr S Surendranath Reddy’s 37.78 percent shareholding.

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Investors Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 and Karakoram own 1.44 percent and 38.56 percent stake, respectively, in the diagnostic chain operator.

Vijaya Diagnostic Centre is the largest integrated diagnostic chain in southern India by operating revenue. It offers a one-stop solution for pathology and radiology testing services to customers through a network of 81 diagnostic centres and 11 reference laboratories in 13 cities and towns in Telangana, Andhra Pradesh, the National Capital Region and Kolkata as in June 2021.

For the three months ended June 2021 and the fiscal year 2021, it derived 95.91 percent and 96.20 percent of its revenue from Hyderabad and rest of Telangana and Andhra Pradesh, respectively.

The year 2021 has seen an IPO frenzy. As many as 38 companies have raised Rs 71,833.37 crore this year compared with 16 public issues that garnered Rs 31,128 crore in 2020.

Abundant liquidity, recovery in the economy and earnings as coronavirus restrictions are rolled back, steps the government and the Reserve Bank of India to spur growth have boosted sentiment in the secondary market, giving a boost to the primary market.