Krsnaa Diagnostics, the leading diagnostic chain is all set to hit the bourses on Monday. Krsnaa Diagnostics stocks will get listed at National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on August 16. The Rs 1,213.33-crore initial public offering of the company saw a stellar respnse from the investors. Krsnaa Diagnostics IPO was subscribed 64.40 times. The stock of Krsnaa Diagnostics is likely to get listed at a price of more than Rs 1,250 per share, more than 30 percent premium over final issue price of Rs 954 per share, according to market analysts.
The strong demand from investors and positive attitude in the market is expected translate to a healthy listing for Krsnaa Diagnostics share. Krsnaa Diagnostics stock to list at approximately 30 per cent premium to issue price, said Astha Jain, senior research analyst at Hem Securities.
Krsnaa Diagnostics IPO received bids of over 45.80 crore shares against the total issue size of over 71.12 lakh shares, data available with the National Stock Exchange (NSE) showed. The portion reserved for the qualified institutional buyers (QIBs) was subscribed 49.83 times. The quota reserved for non institutional investors was subscribed 116.30 times and that of retail individual investors (RIIs) was subscribed 42.04 times.
Ahead of the listing, the share of Krsnaa Diagnostics was commanding a price of 1,259-1,274 per share in the unofficial market. The grey market premium was Rs 305-320, around 32-33.5 per cent up over final issue price of Rs 954, according to the IPO Watch and IPO Central data. Strong investors’ support and decent grey market premium indicated healthy listing for Krsnaa Diagnostics share.Krsnna
“Krsnaa is a large and differentiated diagnostic service provider, which offers a range of technology-enabled diagnostic services such as imaging, pathology and teleradiology services to public and private hospitals, medical colleges and community health centres pan-India. The company focuses on the public-private partnership (PPP) diagnostics segment and has the largest presence in the diagnostic PPP segment. Around 70 per cent of company’s revenue comes from Public Health Agencies i.e. from government and these are long term contracts ranging from 2 years to 10 years thus shows good revenue visibility,” said said Ashish Chaturmohta, director research, Sanctum Wealth Management.
“The company is utilizing Fresh Issue proceeds in good areas like Repayment of Borrowings and Capex, After IPO proceeds company DE ratio will be 0.37. The Promoter holding was already low and after IPO it will be further down to just 27.38%. Based on Peer comparison issue is priced aggressively. After 151cr capex company’s PPE would be around 450cr and based on ATR of FY20 i.e. 1.04, company has the potential to clock in around 468cr of Revenue (Non Covid) and with Adjusted PAT margin of FY20 will do PAT of around 37cr or EPS of 11.9 based on that also issue seems to be aggressively priced at 80 PE,” Chaturmohta further added.
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