7 Facts to Know About the Vijaya Diagnostics IPO
Vijaya Diagnostic Centre will open its initial public offer (IPO) on 01st September and the IPO will close on 03rd September. The entire issue of Rs.1,895 crore will be an offer for sale (OFS), in which the promoter and early investors will take the partial exit and no fresh funds come into the company. The Vijaya Diagnostic IPO has been priced in the band of Rs.522-Rs.531.
What you must know about the Vijaya Diagnostics IPO
1) Vijaya is not only the largest diagnostic chain in South India, but also the fastest-growing. It offers 740 routine tests and 870 specialized pathology tests. In addition, it also offers 220 basic and 330 advanced radiology tests.
2) Between Mar-19 and Mar-21, the top line revenues have grown 29% while the net profits has grown by 85%. The return on capital employed has improved in this period from 30% to 42%.
3) Post the issue, the promoter group stake will go down from 59.78% to 54.78%. At the same time, the public shareholding post the issue will go up from 40.22% to 45.22%. Karakoram Fund will reduce its stake via IPO from 38.56% to 9.54%.
4) For the year ended June 2021, Vijaya Diagnostic conducted 19.60 lakh pathology tests and 2.20 lakh radiology tests. The average revenue per customer at Rs.1,213.78 is higher than the industry average, as per CRISIL analysis.
5) For fiscal year 2021, Vijaya derived 95% of its revenues from Telangana and Andhra Pradesh. That leaves a huge scope for the company to geographically expand its presence to adjacent states.
6) In terms of patient volumes, Vijaya showed best CAGR growth between 2017 and 2021. Its CAGR growth at 14% is higher than Dr. Lal Pathlabs at 13%, Metropolis at 13% and Thyrocare at 10%.
7) Based on the upper band, Vijaya’s post-issue market cap will be Rs.5,410 crore. At net profits of Rs.85 crore, it discounts at over 60X. But that is still cheaper than peer group names like Thyrocare and Dr. Lal Pathlabs.
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