The initial public offer (IPO) saw 35 per cent subscription by 11.20 am. It saw bids for 86,35,088 shares against the total issue size of 2,50,26,646 shares.
The price band for the same has been fixed at Rs 522-531 per share with a face value of Re 1 each. Shareholders of Hyderabad-based Vijaya Diagnostic and the company are eyeing to raise Rs 1,895 crore through the primary offering.
Vijaya Diagnostics Centre offers a one-stop solution for pathology and radiology testing services. The company offers 740 routine and 870 specialized pathology tests and 220 basic and 320 advanced radiology tests.
It has 81 diagnostic centres and 11 reference laboratories across 13 cities and towns. The company derived most of its revenue from operations from its core geographies–Hyderabad and rest of Telangana, and Andhra Pradesh.
Considering the FY21 adjusted EPS of Rs 8.26 on a post-issue basis, the company is going to list at a PE of 64.26 with a market cap of Rs 5,414 crore, said analysts. Its peers namely Dr Lal Path Labs and Metropolis Healthcare are trading at a PE of 80.66 and 56.55, respectively.
“We assign ‘subscribe’ rating to this IPO as the company is one of the fastest growing diagnostic chains with dominant position in south India and is well positioned to leverage the high growth in the Indian diagnostics industry. Also, it is available at reasonable valuation as compared to its peers,” said analyst at Marwadi Shares and Finance.
