Muted listing: Vijaya Diagnostic Centre lists at 2.13% premium

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Kedara Capital-backed Vijaya Diagnostic Centre made a muted debut on the bourses on September 14. Shares of the company opened for trading at a 2.13% premium over the issue price of Rs 531 per share. The stock opened at Rs 540 apiece on the National Stock Exchange (NSE) and at Rs 542.30 on the BSE.

The public issue of the diagnostic chain was subscribed 4.54 times. The issue received bids of over 11.36 crore shares against the total issue size of over 2.50 crore shares, according to National Stock Exchange (NSE). The portion reserved for qualified institutional buyers (QIBs) was subscribed 13.07 times. The quota set aside for non-institutional investors was booked 1.32 times and that of retail individual investors (RIIs) was subscribed 1.09 times.

The Rs 1,895.04 crore public offer was a pure offer for sale (OFS) of 35.6 million shares. Promoter Dr S Surendranath Reddy will sell up to 50,98,296 shares. Investor Karakoram will offload up to 2,94,87,290 equity shares, and investor Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 will sell up to 11,02,478 shares. This will see a stake dilution of 35% by the promoter and existing shareholders.

Vijaya Diagnostic Centre is one of the fastest-growing diagnostic chains in Southern India. The company offers a one-stop solution for pathology and radiology testing services. The company offers around 740 routine tests, 870 specialized pathology tests, 220 basic tests, and 320 advanced radiology tests. It has an operational network consists of 80 diagnostic centres and 11 reference laboratories spread across 13 cities and towns in the states of Telangana, Andhra Pradesh, National Capital Region, and Kolkata.

For the financial year ended March 31, 2021, the company reported total revenue of Rs 388.59 crore compared to Rs 302.94 crore in FY19. During the same period, the company posted a profit of Rs 84.91 crore in FY21 versus Rs 46.27 crore in FY19.

Edelweiss Financial Services, ICICI Securities and Kotak Mahindra Capital Company were the lead managers to the issue.