Krsnaa Diagnostic IPO: Opens today; Key details investors should know before investing

Krsnaa Diagnostic IPO: The initial public offering (IPO) of Krsnaa Diagnostics Ltd, one of the fastest-growing diagnostic chains in India, will open for subscription today, i.e., on Wednesday, August 4, 2021, at a price band of Rs 933-954 per share. The offer will be available till Friday, August 6, 2021.

Through the offer, Krsnaa Diagnostic aims to raise Rs 1,213.76 crore. Investors can bid for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter.

The initial public offering comprises a fresh issue of Rs 400 crore and an offer for sale of 85,25,520 equity shares by selling shareholders PHI Capital Trust-PHI Capital Growth Fund-I, Kitara PIIN 1104, Somerset Indus Healthcare Fund I, and Lotus Management Solutions (acting through Mayur Sirdesai).

The company will utilise net proceeds of the fresh issue for establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh and Maharashtra; repaying of debts; and general corporate purposes.

JM Financial, DAM Capital Advisors, Equirus Capital, and IIFL Securities are the book running lead managers to the issue.

Besides, Krsnaa Diagnostics has raised Rs 537 crore from 44 anchor investors on August 3, ahead of issue opening. The company has allocated 56,28,937 equity shares to anchor investors at Rs 954 per share. The prominent anchor investors who participated in the anchor book includes name like Kuber India Fund, Volrado Venture Partners, HSBC, Tara Emerging Asia Liquid Fund, Societe Generale, Elara India Opportunities Fund, Nomura, Stock Mother Fund, Segantii India Mauritius Abakkus Growth Fund, ICICI Prudential, HDFC Life Insurance, SBI Mutual Fund, Tata Mutual Fund, Motilal Oswal Mutual Fund, Edelweiss, Nippon Life, Aditya Birla Sun Life, Kotak Mutual Fund, Max Life Insurance, and Kotak Mahindra Life Insurance.

Krsnaa Diagnostics was incorporated in 2010 provides a wide range of diagnostic services such as imaging/radiology services (X-rays, MRI, etc.), routine clinical laboratory tests, pathology, and teleradiology services. The customer base is primarily private and public hospitals, medical colleges, and community health centres. It has an extensive network of integrated diagnostic centres across India primarily in non-metro and lower-tier cities and towns. As of June 2021, it operated 1,823 diagnostic centres offering radiology and pathology services in 13 states across India.