The initial public offering (IPO) of Vijaya Diagnostic Centre has been subscribed 4.54 times on September 3, the third and final day of the bidding process. Investors have put in bids for 11.36 crore equity shares against the IPO size of 2.50 crore equity shares, as per the subscription data available on the exchanges.
The portion set aside for retail investors was subscribed 1.09 times, while that of Qualified institutional buyers (QIBs) saw 13.07 times subscription. The non-institutional investors' (NIIs) portion has been subscribed 1.32 times and that of Employees 98 percent.
The IPO is a complete offer for sale (OFS) of 3,56,88,064 shares by promoter Dr S Surendranath Reddy, and investors Kedaara Capital AIF and Karakoram Capital AIF 1.
The price band for the issue was fixed at Rs 522-531 per equity share. At the upper price band, the issue is estimated to garner Rs 1,895 crore.
The company will not directly receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders.
Vijaya Diagnostic Centre is the largest integrated diagnostic chain in southern India, by operating revenue, and also one of the fastest-growing diagnostic chains by revenue for FY20.
The company offers a one-stop solution for pathology and radiology testing services to their customers through an extensive operational network, which consists of 81 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 as on June 30, 2021.
At the upper price band, Vijaya is demanding a PE multiple of ~64.3 times of the FY21 earnings. It is lower than the industry average of 90.8 times, IIFL Securities said.
"Considering the future growth potential of the healthcare industry, revenue from the operation, EBITDA and PAT growth of 13.5 percent, 23.9 percent, and 35.5 percent CAGR during FY19-21, respectively; strong ROE and ROCE of 23.64 percent and 42 percent, respectively in FY21; a debt-free company with plans for acquisition and expansions, diversified services offerings and strong technical capabilities of the company, we recommend 'subscribe' to the issue with a long-term perspective," it said.
First Published: IST