This, over the price band of Rs 522-531, suggests a premium of 5.6 per cent. Marketmen tracking grey market moves said activity may pick up pace early next week. The Rs 1,894 crore IPO would open on Wednesday and close on Friday.
The issue comprises an offer for sale (OFS) of up to 35,688,064 shares by existing shareholders. At the upper end of the price band, the post-issue implied market cap stood at Rs 5,414 crore.
Abhay Doshi, founder at Unlisted Arena, said Vijaya Diagnostic Centre financials have been better than that of Pune-based Krsnaa Diagnostics whose IPO got concluded recently. But there have been some concerns over Vijaya’s overdependence on Andhra Pradesh and Telangana regions, he said. “Valuations too are looking on the higher side, leaving little on the table for investors,” Doshi said.
Krsnna Diagnostics had earlier this month debuted at a 7 per cent premium. It hit a high of Rs 1,099.50, but has fallen since. On Friday, it was quoting at Rs 899.25, down 0.79 per cent.
“We have seen in Krsnaa Diagnostics that the IPO was priced at the higher end of the peers and after the listing, the company is trading below the IPO price. We have a ‘neutral’ view on Vijay Diagnostic IPO,” said Yash Gupta, Equity Research Analyst, Angel Broking.
Narottam Dharawat of Mumbai-based Dharawat Securities said Vijaya’s brand recall in its region of operation is strong. He does not see a poor post-listing weakness in Krssna Diagnostics to have a rub-off effect on the forthcoming issue. “It should sail through smoothly,” he said.
Vijaya Diagnostic Centre is the largest integrated diagnostic chain in southern India in terms of operating revenue. It offers a comprehensive range of approximately 740 routine and 870 specialized pathology tests, as of June 2021. The company marks its presence in the states of Telangana and Andhra Pradesh, along with National Capital Region and Kolkata through its extensive operational network. As of June 2021, it had 81 diagnostic centres and 11 reference laboratories.
The company reported a 37 per cent rise in net profit at Rs 84.90 crore for FY21 compared with Rs 62 crore in FY20. Revenue was up 9.7 per cent at Rs 388.5 crore compared with Rs 354 crore in the year-ago quarter.
