Vijaya Diagnostic Centre Ltd IPO

Current

IPO Synopsis

Offer Details

The offer comprises of an offer for sale of ₹1,895cr. The objects of the Offer are to carry out the Offer for Sale of up to 35,688,064 Equity Shares by Selling Shareholders; achieve the benefits of listing the Equity Shares on the Stock Exchanges.

 

Vijaya Diagnostics Shareholding

% Shareholding

Pre- IPO(%)

Post-IPO(%)

Promoter & Promoter Group

59.78

54.78

Public

40.22

45.22

 

 

About Vijaya Diagnostic Centre Ltd

Vijaya Diagnostic Centre Limited offers a one-stop solution for pathology and radiology testing services to its customers through the extensive operational network, which consists of 81 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana & Andhra Pradesh, the National Capital Region and Kolkata as on June 30, 2021. The company offers a comprehensive range of approximately 740 routine and 870 specialized pathology tests and approximately 220 basic and 320 advanced radiology tests, that cover a range of specialties and disciplines.

Key Points

Competitive Strengths:

Some of the competitive strengths are as follows

1.  Largest and fastest-growing diagnostic chain with dominant position in south India 

Vijaya Diagnostic center is the largest integrated diagnostic chain in southern India, by operating revenue, and also one of the fastest-growing diagnostic chains by revenue for the fiscal year 2020 (Source: CRISIL Report). The company has built an extensive operational network consisting of 81 diagnostic centers including a flagship center located at Hyderabad, and 11 co-located reference laboratories, including a national reference laboratory at their flagship diagnostic center, across 13 cities and towns in the states of Telangana and Andhra Pradesh and in National Capital Region and Kolkata, as of June 30, 2021. For the fiscal year 2021, the company derived 86.21% and 9.99% of revenue from operations from Telangana and Andhra Pradesh, respectively.

2.  Well-positioned to leverage the high growth in the Indian diagnostics industry

According to the CRISIL Report, the Indian diagnostics market was valued at ~₹710 billion to ₹730 billion in the fiscal year 2021, and is projected to grow at CAGR of around 12% to 13% to reach ~₹920 billion to ₹980 billion by fiscal year 2023 driven by rise in health awareness and disposable incomes, increase in demand for better healthcare facilities and quality of care of individuals, and increase in spending on preventive and wellness. The combination of Vijaya Diagnostic’s strong brand position driven by the long operating history in their core geographies, their extensive operational network and their reputation for providing quality diagnostic services positions them well to continue to grow the scale of their business in Telangana and Andhra Pradesh market and take advantage of growing Indian diagnostic market.

3.  Integrated diagnostics provider that offers a one-stop solution

Vijaya Diagnostic Centre offers a comprehensive range of approximately 1,610 pathology tests, which are organized into approximately 740 routine tests and 870 specialized tests, as well as approximately 220 basic and 320 advanced radiology tests that cover a range of specialties and disciplines, as of June 30, 2021. The company’s test menu includes (i) pathology tests ranging from basic biochemistry and clinical pathology to cytogenetics and high-end molecular diagnostic tests, including protein chemistry, cellular immunology, flow cytometry, genetics, cytogenetics, immunohistochemistry and advanced microbiology tests, and (ii) radiology tests ranging from basic echocardiograms, X-rays and ultrasounds to advanced radiology tests such as MRI, HRCT, SPECT and PET CT. Given the focus on the provision of integrated diagnostic services, Vijaya Diagnostic Centre has provided 2.8 tests per customer on the average fiscal year in fiscal year2020, which is higher than other listed regional/multi-regional diagnostic chains, according to the CRISIL Report. 

Risk Factors:

Some of the risk factors are as follows
1.    The business operations are concentrated in South India, and any loss of business in such a region could have an adverse effect on their business.
2.    Failure or malfunction of their equipment could adversely affect their ability to conduct their operations.
3.    The company may become subject to professional malpractice liability claims, which could be costly and, therefore, could negatively affect their business.

 

Vijaya Diagnostic Centre Limited 5paisa Review
 

Considering the future growth potential of healthcare industry, debt free company with plans for acquisition and expansions, diversified service offerings and strong technical capabilities of the company, we recommend ‘Subscribe’ to the issue with a long-term perspective.

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

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  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

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To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
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  • Check details and Confirm
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A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

Contact Details of Vijaya Diagnostic Centre Ltd IPO

Contact Information

Address

Vijaya Diagnostic Centre Limited
3-6-16 & 17, Street No. 19, Himayatnagar
Hyderabad, 500 029

Phone: +91 40 2342 0411
Email: ir@vijayadiagnostic.in
Website: https://www.vijayadiagnostic.com/

Vijaya Diagnostic Centre Ltd IPO Lead Manager

KFintech Private Limited
 KFintech, Tower-B, Plot No 31 & 32,
 Financial District, Nanakramguda, Gachibowli,
 Hyderabad, Telangana India - 500 032.

Phone: 04067162222, 04079611000
Email: vijaya.ipo@kfintech.com
Website: https://karisma.kfintech.com/

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