Krsnaa Diagnostics shares make a tepid listing
Krsnaa Diagnostics IPO, that closed on August 6, was subscribed 64.4 times on the final day of subscription
Krsnaa Diagnostics shares made their stock market debut on Monday by listing at ₹1,005.5 per share on the National Stock Exchange (NSE), over 5% premium from its issue price of ₹954 apiece. The initial public offer (IPO) of Krsnaa Diagnostics, that closed on August 6, was subscribed 64.40 times on the final day of subscription.
The ₹1,213-crore IPO garnered bids for 45,80,08,245 shares against 71,12,099 shares on offer. The issue was in a price range of ₹933-954 per share. Proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra; repayment of loans availed by the company, and general corporate purposes.
Krsnaa Diagnostics provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and teleradiology services to public and private hospitals, medical colleges, and community health centres across India. The company focuses on the public-private partnership (PPP) diagnostics segment and has the largest presence in the diagnostic PPP segment. As of June 2021, the company operated 1,823 diagnostic centres offering both radiology and pathology services in 13 states across the country.
''Krsnaa is well placed to benefit from growing industry trends on the back of its scale, strong brand equity, and extensive footprint across India. Further, its PPP agreements, to deploy diagnostic centres for its radiology and pathology services are typically long-term contracts that ensure visibility of revenues for its operations.. With promising industry growth prospects coupled with company’s strong execution track record, we have a positive on the company for long term,'' Religare Broking had said in a note.
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