By 12.11 pm, the issue received applications for 1,98,85,530 shares against 71,12,099 shares that the company and shareholders intend to sell. It translates into a subscription of 2.8 times.
The company has already allocated 56,28,937 shares to 44 anchor investors at Rs 954 apiece, aggregating to Rs 537 crore.
The company and shareholders plan to raise Rs 1,213 crore from the market. The IPO comprises a fresh issue worth Rs 400 crore and an offer for sale (OFS) of up to 8,525,520 shares by existing shareholders.
The IPO is being sold in Rs 933-954 price band, with asking valuations coming in at 77 times FY21 earnings per share. If successful, the company would command a post-issue market cap of Rs 2,994 crore.
Religare Securities said that Krsnaa is well placed to benefit from growing industry trends on the back of its scale, strong brand equity, and extensive footprint across India.
It noted that the company’s PPP agreements, which deploy diagnostic centres for its radiology and pathology services, are typically long-term contracts that ensure visibility of revenues for its operations.
Krsnaa is a large and differentiated diagnostic service provider, which offers a range of technology-enabled diagnostic services such as imaging, pathology and teleradiology services to public and private hospitals, medical colleges and community health centres pan-India. The company focuses on the public-private partnership (PPP) diagnostics segment and has the largest presence in the diagnostic PPP segment.
Anand Rathi said the asking valuations are lower than the industry average of 85.99 times on an FY21 earnings basis.
“We believe that strong balance sheet position and healthy operating cash flows will enable them to pursue growth opportunities and also fund their strategic initiatives. Hence, we recommend a ‘subscribe’ on the issue,” it said.
