Vijaya Diagnostic Center Limited had opened its first public offer (IPO) on Wednesday and it has completed its second day of trading so far. The public issue was subscribed nearly 47 per cent or 0.47 times on Friday by investors at the end of the second day of trading. According to the data available on the stock exchanges, the public issue had received bids for 1.18 crore equity shares against a lower offer size of 2.50 crore equity shares. NS Vijaya Diagnostic Center IPO An issue size of Rs 1,895.04 crore was carried which consisted entirely of an offer for sale (OFS) of par value. The issue originally contained 35,688,064 equity shares with a face value of Re 1 per equity share. The IPO price ranged from Rs 522 to Rs 531 per equity share.
As per the information on IPO Watch, the gray market premium (GMP) for the issue was Rs 10. This indicated that the issue was trading at a premium of Rs 532 to Rs 541 per equity share in the unlisted gray market.
In terms of investments, retail investors were the investor category, who subscribed the most to the issue at 74 per cent or 0.74 times. This was followed by the employee category, which subscribed to the issue about 52 per cent or 0.52 times. Qualified Institutional Buyers (QIBs) had subscribed 32 per cent or 0.32 times on the second day of the issue. However, non-institutional investors (NIIs) subscribed only 0.05 times on the second day.
The company aims to raise Rs 1,895 crore through a public issue, but has managed to raise Rs 566 crore from its anchor investors just a day before the issue opens. This amount was achieved on August 31 at the upper end of the price band at Rs 531 per share. Since this is an OFS, all proceeds from the IPO will go to the sale of shareholders. Apart from selling its shares, the company is also aiming to get listed on the stock exchanges.
S Surendranath Reddy is promoting this issue. The promoters hold 60 per cent stake while the rest is owned by Kedara Capital, a private equity firm. After completion of OFS, Kedara will have 10 per cent stake in the company.
Speaking on the company’s position, HDFC Securities said, “Vijaya Diagnostic Center Limited (VDCL) is the largest integrated diagnostic chain in Southern India by operating revenue, and the fastest growing diagnostic chain by revenue for the financial year 2020. is one of. “
HDFC Securities said, “For the three months ended June 30, 2021 and the financial year 2021, it generated 95.91% and 96.20% revenue from operations in its core geographic regions, Hyderabad and the rest of Telangana and Andhra Pradesh, respectively.”
Vijaya Diagnostic Center had given revenue growth of 13 per cent CAGR for FY 19-20. Hem Securities said that it expects the company to grow at a CAGR of 12 per cent to 13 per cent by 2023.
Commenting on the company’s scope and market strength, HDFC Securities said, “The Indian diagnostics market is valued at approximately Rs. 710 billion to Rs. 730 billion in the financial year 2021, and is projected to grow at a CAGR of around 12% to 13% which is approximately Rs. 920 billion to Rs. 980 billion by fiscal year 2023, driven by increased health awareness and disposable income, increased demand for better healthcare facilities and quality of care for individuals, and increased spending on preventive and wellness.
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