The initial public offer (IPO) saw 77 per cent subscription by 12 noon. It saw bids for 1,92,53,668 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. Existing shareholders of the Hyderabad-based Vijaya Diagnostics are eyeing to raise Rs 1,895 crore through the primary offering.
Vijaya Diagnostics Centre offers a one-stop solution for pathology & radiology testing services. The company offers 740 routine and 870 specialized pathology tests and 220 basic and 320 advanced radiology tests.
Considering the FY-21 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, 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 a 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.
