India’s largest diagnostics service provider, Krsnaa Diagnostics, has fixed its IPO price band at Rs. 933 to Rs. 954 per share. The company’s public issue will open for subscription from 4 August 2021 Wednesday. Individuals can put in bids till 6 August, Friday.
The upcoming initial public offering will comprise a new issue worth Rs. 400 crores along with an offer for sale (OFS) of 8,525,520 equity shares. PHI Capital Trust-PHI Capital Growth Fund-I will offload 1,600,000 shares, whereas Somerset Indus Healthcare Fund will sell 3,563,427 shares.
Krsnaa Diagnostics IPO: A Closer Look
Here are a few essential details concerning Krsnaa Diagnsotic’s initial share sale:
- Type of Issue: Book–built issue
- Issue Size: 1213.33 crores
- Face Value: 5 per equity share
- Minimum Order Quantity: 15 shares
- Market Lot: 15 shares
- Initiation of Refunds Date: 12 August 2021
- IPO Listing Date: 17 August 2021
Why is Krsnaa Diagnostics Launching the IPO?
The company intends to fulfil the following objectives with its initial public offering:
- Finance the expenses of establishing diagnostic centres in Karnataka, Himachal Pradesh, Maharashtra, and Punjab.
- Fulfil general corporate purposes
- Repay or prepay its borrowings partially/fully
Is Krsnaa Diagnostics worth the Hype?
Here are a few reasons why you might consider putting Krsnaa Diagnostics in your IPO cart –
- Krsnaa Diagnostics has established its footprint across more than 10 states in India.
- This company’s offerings include an extensive range of diagnostic services, such as imaging, pathology, and more.
- Krsnaa Diagnostics boasts robust brand equity, popular for providing high quality services at a reasonable price.
- It strives to maintain a healthy debt-equity ratio of 1:1.
Krsnaa Diagnostics: How is Their Financial Health?
The following are some crucial details regarding Krsnaa Diagnostics’ financials:
- For the year ended 31 March 2021, the total assets of this company stood at Rs. 6,045.30 million.
- The company recorded total revenue worth Rs. 6614.76 million as of 31 March 2021 compared to Rs. 2713.15 million in the previous fiscal.
- After reporting losses in FY19 and FY20, the company’s profit after tax stood at Rs. 1,849.29 million in FY21.
Krsnaa Diagnostics has a competitive edge over its industry peers due to its strong presence across different states in India and using the latest equipment and technology. Furthermore, considering the company’s financial position, the outlook appears to be positive. Hence, one might want to apply for this upcoming IPO.
Nevertheless, individuals need to consider its weaknesses and threats besides the strengths and financials ahead of this IPO. One must also assess the company’s competitive footing before taking a call on the Krsnaa Diagnostics IPO.
Frequently Asked Questions
- How can one subscribe to the initial public offering of Krsnaa Diagnostics?
New investors can subscribe to Krsnaa diagnostics IPO by opening a DEMAT account with Angel One. However, existing customers can sign in to their online trading account and apply for this IPO without any hassle.
- Who is the promoter of Krsnaa Diagnostics?
The promoter of Krsnaa Diagnostics is Rajendra Mutha.
- Who is the registrar for this IPO?
KFintech Private Limited is the registrar to the Krsnaa Diagnostics IPO.
- Who are some of the competitors of Krsnaa Diagnostics?
Metropolis Health, Fortis Healthcare, Indraprastha Medical, Surakhsha Diagnostics Private Limited, and Dr Lal Path labs are some of the peers of this company.
- Who are the merchant bankers to this IPO?
The issuer has appointed JM Financial, Enquires Capital, IIFL Securities, and DAM Capital Advisor as merchant bankers for its initial public offering.
- What portion of the public issue has been reserved for individual retail investors?
Krsnaa Diagnostics has reserved 10% of its public issue for retail investors (RII).