Vijaya Diagnostics IPO - Vijaya Diagnostic IPO - Healthcare chain Vijaya Diagnostic Centre Limited will be launching its Initial Public Offering (IPO) on 1 September. The three-day IPO will end on 3 September. The price band has been fixed at Rs 522-531. What should the investors do in this public issue? Should the buy it or not? Zee Business Managing Editor Anil Singhvi gives his recommendations on this.

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The Market Guru said that investors must apply in Vijaya Diagnostic Centre IPO with a long term view. The promoters of this company are quite experienced as the company has been in operations since 1981. The promoters have also been facilitated with great national honours like Padmashri Awards. They have credibility and good image, Singhvi said.

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Growth has been impressive for this company over many years now and financial are strong, he further said.

In comparison to its peers like Dr Lal Path Labs, it is a small company. But the growth is good on a low base. The company is also debt free with significant cash in hand, the Managing Editor said.

The cash flow is continuous. The valuations are reasonable.

However, the negative is that the entire proceeds of the issue is going to the promoters and not to the company as the issue is fully Offer for Sale (OFS). There is nothing for expansion or capital expenditure.

There is a need for capex, Singhvi opined. The entire business is in Andhra Pradesh and Telangana. They need to expand in terms of Geography, he further said.

The business is very competitive with a lot of big players.

The investors must not apply for listing gains, SInghvi said adding that it is not expected to be very significant. He advises investment with a long term view.

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Vijaya Diagnostic IPO – top 10 things to know

1. Symbol VIJAYA

2. Issue Period between 1 September 2021 and 3 September 2021

3. Post issue Modification Period is 6 September 2021 between 10 am and 11 am

4.Cut-off time for UPI Mandate Confirmation is 6 September 2021 up to 12 pm

5. Issue Size - Vijaya Diagnostic IPO comprises of equity share through an Offer for Sale (OFS) of up to 35,688,064 equity shares. The issue type is 100 per cent book building.

6. Price Range is Rs 522 to Rs 531.

7. Discount of Rs 52 per equity share to eligible employee category.

8. Bid Lot 28 equity shares and in multiples thereof and the minimum order quantity is 28 equity shares.

9. Maximum Subscription Amount for Retail Investor is Rs 200,000 while the maximum subscription amount for eligible employee is Rs 500,000.

10. Categories of investors are FI, IC, MF, FII, OTH, CO, IND, NOH and EMP and the name of the Registrar is KFin Technologies Private Limited.

Vijaya Diagnostic  Centre IPO – Full Timeline

  • The issue ends on 3 September
  • The finalisation on the basis of allotment is expected to be on 9 September.
  • Initiation of refunds likely on 13 September.
  • The transfer of shares to demat accounts likely on 14 September.
  • Listing of stock is likely on 15 September.

The above information on the timeline of the issue is from the app of brokerage company Edelweiss.

The Book Running Lead Managers (BRLMs) are ICICI Securities Limited, Edelweiss Financial Services Limited and Kotak Mahindra Capital Company Limited while the sponsor bank is HDFC Bank Limited.

The company is planning to raise Rs 1,895 crore through the initial share-sale offer, a PTI report said. 

For retail investors, the shares that have been allocated are not less than 12,438,323 equity shares as per the RHP. 

The equity shares will be off-loaded by the promoter S Surendranath Reddy and investors Karakoram Limited and Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I.