Vijaya Diagnostic Center is certainly considered one of the most important diagnostic networks in India. It helps in the delivery of fast, cost-effective, and cutting-edge diagnostic care in a great atmosphere.
Vijaya Diagnostic Centre provides pathology and radiology offerings to it as clients through its community of 80 diagnostic centres and 11 reference laboratories throughout 13 towns and cities with inside the states of Telangana and Andhra Pradesh and the National Capital Region and Kolkata. They have massive groups and networks that are serving as exceptional providers to the nation.
For the convenience of their clients, they provide value-added services such as home specimen collection, house visits, and various delivery or access options (i.e., diagnostic centres, SMS, email, and online portal) for test reports.
The Vijay Diagnostic IPO comprises an OFS amounting to 1,895.04 cr. The issue will open on Sept 01, 2021, and closes on Sept 03, 2021. The issue is priced at 522 to 531 per equity share.
The minimal bid lot is 28 stocks and in multiples of 28 stocks subsequently. It will close on September 3. While the corporation will now no longer acquire any proceeds from the SME IPO the promoting shareholders will get them it expects the list of the stocks to decorate its visibility and brand image.
Objectives:
- The company wants the Prepayment or repayment of all or a portion of the outstanding borrowings to be availed on a consolidated basis.
- To fulfill general corporate objectives.
Strengths:
- Largest and fastest-developing diagnostic chain in Southern India.
- Affordable, one-stop answer diagnostics service company with the focal point on superior quality.
- All laboratories have National Accreditation
- Strong technical capabilities, present-day diagnostic testing technology, and strong IT infrastructure.
Risks:
- If they're not able to keep and extend their brand call and image, their corporation and future can also suffer
- The COVID-19 epidemic can also additionally have a terrible effect on their corporation, and the long-time period outcomes are unknown.
- Any disruptions at their flagship centre and different diagnostic centres may affect their potential to conduct diagnostic assessments, which could harm their commercial enterprise.
- Because of the competitive business climate, and their inability to compete successfully might damage their company business.
- Their potential to execute operations is probably affected if their device fails or malfunctions.
- Their CEO Sura Suprita Reddy is accused of a criminal case.
Basis of Allotment
Qualified Institutional Buyer constitutes 50 percent. around 15 per cent is allocated to Non-Institutional Investors and around 35 per cent is kept for retail investors. For retail investors, it is kept at a minimum of one lot, primarily based totally on availability for each shareholder.
Financial Highlights:
The corporation witnessed a CAGR of 13 per cent in case of sales from operations, from Rs 292.6 crore in FY 2019 to Rs 376.7 crore in FY 2021. In the case of adjusted EBITDA, the corporation witnessed a CAGR of 24 per cent from FY 2019 to FY 2021.
The corporation operations have been improved considerably from 61 diagnostic centres as of March 31, 2019, to 81 diagnostic centres as of June 30, 2021. The corporation’s earnings for the 12 months grew from Rs 46.27 crore for 2019 to Rs 84.91 crore for 2021.
IPO Details
Vijaya Diagnostic Centre IPO details
Subscription Dates1 – 3 September 2021Price BandINR522 – 531 per share Fresh issue Nil Offer For Sale35,688,064 shares (INR1,862.92 – 1,895.04 crore)Total IPO size35,688,064 shares (INR1,862.92 – 1,895.04 crore)Minimum bid (lot size)28 shares Face Value INR1 per share Retail Allocation35%Listing On NSE, BSE
Recommendation
Indian diagnostics market was up to Rs.730 billion in FY21 and projected to grow at a CAGR of 13% to reach approximately Rs.980 billion by FY23 where the growth is expected from the awareness of healthcare and spending on preventive and wellness.
IPO is priced at a PE of 64x on the EPS of Rs. 8.26 which is slightly lower as compared to its peers. There have been negative sentiments for pure OFS based IPO and we saw that few recent IPOs have not performed well in the last couple of months. Thus we assign an "Avoid" rating to the IPO.
Vijaya Diagnostic IPO FAQ's
What is Vijaya Diagnostic IPO?
Vijaya Diagnostic IPO is the main board IPO of having 35,688,064 equity shares of the face value of ₹ 1 that aggregates up to ₹ 1895.04. The issue is priced at ₹ 522 to ₹ 531 per equity share.
The minimum order quantity is 28 shares.
The IPO opens on September 1, 2021, and closes on 3 September 2021.
How to apply in Vijaya Diagnostic IPO through Swastika?
1.Visit the Swastika website and click on it to open Demat account.
2. Submit the IPO application form.
For more details, click on https://trade.swastika.co.in/
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