Vijaya Diagnostic Centre listed on the stock exchanges today flat with a marginal premium to the IPO price amid positive market momentum. Shares of Vijaya Diagnostic began trading at Rs 542.3 per share, up Rs 11.3 or 2.13% from the upper end of IPO price of Rs 531 per share. The IPO of the South India based diagnostic chain was subscribed 4.58 times earlier this month as it raised Rs 1,895 crore from investors. The IPO was entirely an offer for sale (OFS) by existing shareholders of the company. Vijaya Diagnostic Centre will join peers such as Dr Lal Pathlabs, Metropolis Healthcare, Krsnaa Diagnostics, and Throcare Technologies on the bourses.
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Vijaya Diagnostic Centre’s IPO was subscribed 13.07 times by qualified institutional buyers (QIB) for whom half the issue was reserved. Retail investors subscribed to the IPO 1.09 times while non-institutional investors (NII) bid for 1.32 times the portion reserved for them. Employees of the firm had subscribed to the IPO 0.98 times. Ahead of its listing on Dalal Street, shares of Vijaya Diagnostic Centre were trading with losses in the grey market.
“At the upper price band, Vijaya Diagnostic Centre Limited is demanding a PE multiple of ~64.3X of FY21 earnings which is lower than the industry average of 90.8X,” domestic brokerage and research firm IIFL Securities said in a note while advising investors to subscribe to the IPO with a long-term perspective. Vijaya Diagnostic Centre has not received any funds from the listing of its stocks on the stock exchanges as the IPO was entirely and OFS. Promoters of the company have trimmed their stake in the company by 5%. Vijaya Diagnostic Centre has been registering profits for the last 3 financial years.