Vijaya Diagnostic IPO: Should you invest? Check dates, price band, other details

Diagnostic chain Vijaya Diagnostic Center is about to go public and it has fixed the price band for its Initial Public Offer (IPO). The price band has been fixed at Rs 522-531 per share. The company plans to raise Rs 1895 crore at the upper price band. 

The IPO of Vijaya Diagnostic will open next week on September 1 and will close on September 3. This IPO is purely an offer for sale (OFS) in which promoters and investors will reduce their stake. If you are thinking of investing money in it, you should first know all the details.

It may be noted that no fresh equity shares of Vijaya Diagnostic will not be issued. It will be completely OFS, in which 3,56,88,064 equity shares will be sold. Promoter S Surendranath Reddy and investors Karakoram Limited and Kedara Capital Alternative Investment Fund will sell 35 per cent stake in the IPO. Dr S Surendranath Reddy will sell 50.95 lakh shares and Karakoram Limited will sell 2.94 crore equity shares. Whereas 11.02 lakh shares will be sold by Kedara Capital Alternative Investment Fund-Kedara Capital AIF1.

In the IPO, 50 per cent is reserved for Qualified Institutional Buyers (QIBs) and 35 per cent for retail investors. The remaining 15 per cent will be reserved for non-institutional buyers. A total of 1.5 lakh equity shares are reserved for employees. ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as investment bankers for the IPO.

Vijaya Diagnostic provides pathology and radiology testing services through its vast network. It has 80 diagnostic centres and 11 reference laboratories in Andhra Pradesh, Telangana, Kolkata and NCR. In the last financial year, the company's profit had increased to Rs 84.91 crore. While the income of the company was around Rs 389 crore. Notably, the share of diagnostic services in health-related expenses is 8-14 per cent.

(With Zee Business inputs)