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Krsnaa Diagnostics subscribed 57% so far on Day 1; retail portion booked over 3 times

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Krsnaa Diagnostics IPO is subscribed 57 percent so far as it received bids for 40.21 lakh shares as against 71.12 lakh shares offered.

Krsnaa Diagnostics subscribed 57% so far on Day 1; retail portion booked over 3 times
The initial public offer (IPO) of the tech-enabled diagnostics services provider, Krsnaa Diagnostics was subscribed 168 percent so far on the first day of bidding. The issue has received bids for 1.20 crore shares as against 71.12 lakh shares offered, according to the subscription data on the exchanges.
The reserved portion of retail investors saw 4.31 times subscription, while that of non-institutional investors saw 2 percent subscription, till 3:20 pm. The portion reserved for qualified institutional buyers saw 48 percent subscription.
Krsnaa Diagnostics is one of the largest differentiated diagnostic service providers in the country. Its range of services includes imaging, pathology/clinical labs, and teleradiology services. The domestic lab chain offers services to the public, private hospitals, community health centres, and medical colleges.
Its OFS consists of a sale of 16 lakh shares by PHI Capital Trust-PHI Capital Growth Fund-I, 33 lakh shares by Kitara PIIN 1104, 35 lakh shares by Somerset Indus Healthcare Fund I, and 21,380 by Lotus Management Solutions (acting through Mayur Sirdesai).
Of the total issue, retail investors can bid for 10 percent of the net offer and non-institutional and qualified institutional buyers can bid for 15 and 75 percent of the issue, respectively.
The company aims to use the proceeds from the IPO to finance the cost of diagnostics centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra. A portion of the proceeds will also go towards general corporate expenses and a separate portion will be used to repay the borrowings from lenders.
Most brokerages have recommended a 'subscribe' rating for the IPO on the backs of strong operations and financials.