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Krsnaa vs Windlass: How the IPOs of the two healthcare companies compare

Two initial public offerings (IPOs) from the healthcare segment opened for subscription on Wednesday, August 4. The IPOs of diagnostic services provider Krsnaa Diagnostics and contract drug manufacturer Windlass Biotech will close on Friday, August 6.

Two initial public offerings (IPOs) from the healthcare segment opened for subscription on Wednesday, August 4. The IPOs of diagnostic services provider Krsnaa Diagnostics and contract drug manufacturer Windlass Biotech will close on Friday, August 6.
Krssna Diagnostic offers radiology and pathology services with a total of 1,823 diagnostic centers. Around 67 percent of the company's revenue is from public health agencies, which is expected to be one of the biggest risks due to higher receivables.
The company is looking to raise Rs 1,213 crore through the IPO, which includes fresh issuance of shares worth Rs 400 crore and an offer for sale of shares worth over Rs 813 crore by promoters.
Krsnaa Diagnostics has raised around Rs 537 crore from 44 anchor investors. On a FY21 PE basis, Krsnaa shares are being offered at a discount to peers such as Dr Lal Pathlabs and Metro. Krsnaa is valued at 76-78 times on a FY21 PE basis, lower than Metro's 81 times and Dr Lal Pathlabs' 100 times, although the companies' business models are not entirely comparable.
Windlass Biotech is an India-based contract drug manufacturer. It manufactures formulations for the domestic market and is among the top five in terms of revenue as a CDMO formulation manufacturer.
The company is looking to raise Rs 400 crore through the IPO, which includes fresh issuance of shares worth Rs 165 crore. It has raised Rs 120 crore from 22 anchor investors.
There is no listed company that operates in the same space as Windlass. Its FY21 trailing PE of 51.5-52.8 times is lower than that of US-based Catalent (63.7 times) and EU-based Recipharm (around 55.3 times).
CNBC-TV18’s Ekta Batra has more details.