Krsnaa Diagnostics Ltd provides a comprehensive variety of technology-enabled diagnostic services to public and private hospitals, medical institutions, and community health centres across India, including imaging (including radiology), pathology/clinical laboratory, and teleradiology. Across many divisions, the company delivers high-quality, all-inclusive diagnostic services at reasonable prices. Krsnaa Diagnostics Ltd's Initial Public Offering (IPO) will commence for bidding on August 4, 2021, and end on August 6, 2021. A new offering of Rs 400 crore will be part of the company's IPO. It also includes an offer by the company's existing promoters and shareholders to sell up to 8.53 million or 85.30 lakh shares. PHI Capital Growth Fund will sell 1.6 million or 16 lakh shares, Kitara PIIN 1104 will sell up to 3.34 million or 33.4 lakh shares, Somerset Indus Healthcare Fund I Ltd will sell up to 3.56 million or 35.6 lakh shares, and Lotus Management Solutions will sell up to 21,380 shares in the Offer for Sale (OFS).
About the IPO
Krsnaa Diagnostics plans to raise Rs 1,213.33 crore through its first public offering. The issue is made up of a new issue of Rs 400 crore and an offer for sale (OFS) for Rs 813.33 crore, comprising 8,525,520 equity trading shares having a face value of Rs 5 each. On August 3, a day before the IPO opens for subscription, all anchor reservations will take place. The issue price range was Rs 933 to Rs 954 per equity share, with a face value of Rs 5 per share. It's an IPO with a book-built issue. The offering has a grey market premium of Rs 400, implying that the shares are trading on the unlisted market at a premium of Rs 1,333 to Rs 1,354 per share. The minimum lot size for the Krsnaa Diagnostics IPO is 15 shares, with an associated application fee of Rs 14,310. On the top end of the lot, there are 195 shares with a Rs 186,030 application amount. Retail investors can apply for up to 13 lots at the higher end of the lot size for this issue.
Strength
For starters, it is one of India's most well-known diagnostic chains. The company's financial picture. It also provides a broad and diversified variety of diagnostic services because of its complicated network and presence in 13 locations, it has a large market footprint. In addition, the firm has a solid financial track record.
Objectives
- A proposal to funding the establishment of diagnostics centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra.
- Repayment/prepayment, in whole or in part, of our Company's borrowings from banks and other financial institutions.
- General business objectives
Strategies:
- Continually grow our footprint in India
- Expand diagnostic services with an emphasis on specialist diagnostics
- Increase your digital footprint
- Maintain a high level of social impact
- Continue to increase profit and efficiency
- Opportunistic purchases expand business and geography.
Investment allocation:
When it comes to investment allocations, the retail part is only 10%. The SME IPO has a 75 percent reservation for qualified institutional buyers (QIBs) and a 15% reservation for non-institutional investors (NIIs).
Financial Highlights:
The firm was able to sustain a high level of performance. For the fiscal year ending March 31, 2020, the film earned Rs 271.38 crore in total revenue. This was increased from Rs 214.31 crore the previous year. The company's net losses increased to Rs 111.95 crore in FY20, up from Rs 58.05 crore the previous year. Krsnaa Diagnostics, on the other hand, had a significant decrease in spending and an increase in income.For the nine-month period ending December 31, 2020, the net profit and sales were Rs 195.93 crore and Rs 562.7 crore, respectively. This trend was caused by increased income from operations as a result of the pandemic's outbreak.
Recommendation: The business model is scalable, and in the present climate, where post-COVID health consciousness is at an all-time high, this industry is only going to grow in the next years. This represents a big market for the firm as well as significant potential.The firm intends to use the proceeds of the offering to pay down debt, which is usually valued accretive for service-oriented enterprises. ) The IPO price for Krsnaa Diagnostics discounts the most recent year's profits at roughly 21X, which is lower than the comparable group. We recommend you to subscribe(Aggressive Investors).
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