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    Vijaya Diagnostic Centre IPO opens; says co debt-free with significant liquidity

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    Vijaya Diagnostic Centre IPO opens; says co debt-free with significant liquidity

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    Vijaya Diagnostic Centre is debt-free and has significant liquidity on the balance sheet, Sunil Chandra Kondapally, executive director, told CNBC-TV18.

    Vijaya Diagnostic Centre is debt-free and has significant liquidity on the balance sheet, Sunil Chandra Kondapally, executive director, told CNBC-TV18.
    The integrated diagnostic chain has fixed a price band of Rs 522-531 apiece for its Rs 1,894-crore initial share sale. The initial public offering (IPO), which is going to be entirely an offer for sale (OFS) opens for subscription on September 1 and closes on September 3.
    “We are a 40-year-old business, the company has built strong business-to-consumer (B2C) unique integrated diagnostic model and the company is debt-free. We have significant liquidity on the balance sheet, which will be used for the growth of the business,” Kondapally said.
    The initial share sale will see promoters selling close to 5 percent and the PE fund will be selling around 30 percent. Kondapally said, “Our PE investor is selling around 30 percent. But they will continue to hold 10 percent going forward also. That itself is a sign of the confidence they have in the future growth of the business.”
    He further said, “There will be a lock-in for the PE. Post issue, there will be a lock-in for 12 months. The promoter group has no plans of diluting our position further.”
    Meanwhile, Suprita Reddy, CEO of Vijaya Diagnostic, said, “We offer everything under one roof with pathology and radiology. The only way to capture the market is to go deep into it and create a dense operational network. We have been doing that in the core regions of Andhra Pradesh and Telangana and we see growth coming from these two regions.”
    On acquisition, Reddy said, “We have always been open to looking at acquisitions, but our strategy on acquisition has always been more on the customer-centric model. So the B2C model and in the geographies of our interest – that would be our markets and east India.”
    For the entire management interview, watch the video
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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