The IPO is a pure offer for sale of 35.68 million shares by the promoters of the company and Kedaara Capital. The company will not raise fresh capital for its business from the IPO
Private equity firm Kedaara Capital-backed diagnostic chain Vijaya Diagnostic Centre Ltd has filed the draft red herring prospectus for its initial public offering (IPO) in a move aimed at giving Kedaara a partial exit from its five-year-old investment.
Kedaara Capital had picked up a 40% stake in the diagnostic chain in 2016 for over ₹400 crore.
The IPO is a pure offer for sale of 35.68 million shares by the promoters of the company and Kedaara Capital. The company will not raise fresh capital for its business from the IPO.
The IPO will see the investor and promoters collectively dilute a 35% stake in the company, with Kedaara alone diluting 30%.
Vijaya Diagnostic is one of the largest diagnostic chains in southern India, It offers a one-stop solution for pathology and radiology testing services through an extensive operational network, which consists of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in Telangana, Andhra Pradesh and in the National Capital Region and Kolkata.
During the fiscal year 2021, the company derived 96.2% of its revenue from operations in Telangana and Andhra Pradesh.
For the fiscal years 2021, 2020 and 2019, the company reported a revenue of ₹388.5 crore, ₹354.1 crore and ₹302.9 crore, respectively. It reported a profit of ₹84.9 crore, ₹62.5 crore and ₹46.2 crore, for the respective financial years.
Investment banks ICICI Securities, Edelweiss and Kotak Mahindra Capital are advising the company on its IPO.