Vijaya Diagnostic Centre IPO opens next week; check grey market premium, price band, lot size, bid details

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August 26, 2021 11:19 AM

Vijaya Diagnostic Centre Rs 1,895-crore IPO will open for subscription on 1 September, at a price band of Rs 522-531 per share of the face value of Re 1, each.

Vijaya Diagnostic IPO, Vijaya Diagnostic IPO price bandUpon successful listing, Vijaya Diagnostic Centre will join the likes of Dr. Lal Path Labs, and Metropolis Healthcare. Image: https://www.vijayadiagnostic.com/

Vijaya Diagnostic Centre Rs 1,895-crore IPO will open for subscription on 1 September, at a price band of Rs 522-531 per share of the face value of Re 1, each. So far this tear, Vijaya Diagnostic Centre IPO is the 39th issue. In the primary market, Vijaya Diagnostic Centre was seen quoting at a premium of Rs 40, over the issue price. On Wednesday, Vijaya Diagnostic Centre shares were trading at Rs 571, a premium of 7.5 per cent over the IPO price, in the grey market, according to the people who deal in the unlisted shares of the company.

Investors can make bids for a minimum of 28 equity shares and in multiples thereof, translating to a minimum investment amount of Rs 14,868 per lot. Half of the net offer will be reserved for qualified institutional buyers (QIBs), up to 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors (NIIs). Bidder of the issue are required to ensure that the bank account used for bidding is linked to their PAN (permanent account number).

Upon successful listing, Vijaya Diagnostic Centre will join the likes of Dr. Lal Path Labs, and Metropolis Healthcare. The weighted average return on net worth for last three fiscals is 23.14 per cent. The price/earnings ratio based on basic and diluted EPS for FY21 for the company at the higher end of the price band is 64.29, whereas the average industry peer group price/earnings ratio is 90.80.

Kedaara Capital-backed Vijaya Diagnostic Centre offers one-stop solution for pathology and radiology testing services to customers through its extensive network. Growth in the Indian diagnostics market is driven by favourable changes in demographics, improvements in health awareness, increased spend on preventive care and wellness, increase in lifestyle-related ailments and rising penetration of insurance in India. According to CRISIL Research estimates, India’s urban population (approximately 31% of India’s total) contributes up to 74% of the overall diagnostics market revenue. Growth in household income and, consequently, disposable income, are critical to the overall growth in demand for healthcare delivery services in India.

Some of the key diagnostic chains operating in the Andhra Pradesh and Telangana region are Vijaya, Thyrocare, SRL, Metropolis, Lucid Medical Diagnostics Private Limited (Lucid), Medall and Tenet Medcorp Private Limited (Tenet), among others. The regional cluster of Andhra Pradesh or Telangana has presence of both multi-regional players, namely DLPL, SRL, Thyrocare, Metropolis and others, as well as prominent south-based players such as Vijaya, Tenet, Medall, Aarthi, Lucid, Neuberg Diagnostics Pvt Ltd (Neuberg), Focus Diagnostics and Tesla Medcorp Pvt Ltd.

The majority of healthcare enterprises in India are more concentrated in urban areas. With increasing urbanisation (migration of population from rural to urban areas), awareness among the general populace regarding presence and availability of healthcare services for both preventive and curative care is expected to increase, thus paving the way for growth of the diagnostic industry as well.

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