Vijaya Diagnostic IPO

 

More than 80 state-of-the-art centres located among 13 cities, Vijaya Diagnostic Centre (VDC) is India’s most integrated diagnostic network. kedaara capital Backed Vijay Diagnostic centre Limited is looking to raise funds via IPO. Vijaya Diagnostic IPO will hit the market in 01 September 2021.

Journey

Dr. S. Surendranath Reddy established Vijaya Diagnostic Centre in 1981 with the goal of delivering comprehensive, creative, and state-of-the-art diagnostic services under one roof in a dependable, economical, and customer-centric manner.

Vijaya Diagnostic Centre has worked tirelessly over the last 40 years to ensure high quality in all of its locations, and has been a leader in implementing cutting-edge technology to provide best-in-class healthcare to its clients.

They now have 63 facilities in Hyderabad, as well as branches in Sangareddy, Warangal, Hanmakonda, Karimnagar, Nizamabad, Kurnool, Nellore, Visakhapatnam, Kolkata, and Gurgaon.

Values

Vijaya Diagnostic Centre assists in the delivery of quick, cost-effective, and cutting-edge diagnostic care in a reliable and comfortable atmosphere. At Vijaya Diagnostic Centre, they recognise that excellent clinical outcomes require high-quality and trustworthy diagnostic findings.

Their Diagnostic Center is outfitted with the highest-quality instruments and technology, and is overseen by the most experienced Radiologists and Pathologists, ensuring that the demands of physicians and patients are met.

They stay up with technology improvements and provide their consumers with the most up-to-date diagnostic medical information.  They follow the most demanding quality and ethical standards to ensure constant safety and quality.

Milestones

Mission & Vision

Our Mission is to make a patient’s medical experience more efficient, transparent, and reliable. Each patient and physician can count on them to provide superior diagnostic solutions.

They are always looking for ways to improve their value-added services so that they may effectively cure patients with dignity, regard, and humanity.

Their vision is to offer dependable and accurate diagnostic services at reasonable pricing in a customer-centric way to their customers.

They make every effort to deliver the finest possible experience. They are always lifting the bar through the use of cutting-edge technology, ongoing improvement, and the hiring of top-notch specialists and professionals.

Network

Their operating structure Consist below network of diagnostic centres:

• A flagship centre located in Hyderabad, which is our main ‘hub’ and equipped to conduct all of pathology specimens collection, basic and advanced radiology tests.
• 19 hub centres, which are equipped to conduct all of pathology specimens collection, basic radiology tests
  and certain advanced radiology tests.
• 60 diagnostic centres, which are equipped to conduct a majority of pathology specimen collection and certain basic radiology tests; and a laboratory network of
• A national reference laboratory co-located with our flagship centre
• 10 reference laboratories co-located with certain hub centres and diagnostic centres.

Vijaya Diagnostic IPO

Vijaya Diagnostic Centre, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 35,688,064 equity shares on 06 June, 2021.

The Offer includes no fresh equity  and an offer for sale(OFS) up to 35,688,064 equity shares of face value of 1 per share, by the promoters.

They got approval from Securities and Exchange Board of India(SEBI) on 27 July, 2021 to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year ended ( in Cr.)
	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	540.94	482.26	406.43
Total Revenue	388.59	354.18	302.94
Profit After Tax	84.91	62.51	46.27

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	8.26	8.26	3
Financial Year 2020	6.13	6.13	2
Financial Year 2019	4.50	4.50	1
Weighted Average	6.92	6.92

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

• Biggest and fastest-growing diagnostic chain in south India, well-positioned to gain on the Indian diagnostics industry’s rapid expansion.
• Integrated diagnostics supplier with an emphasis on exceptional quality standards that provides a one-stop solution at a reasonable price.
• Personal client business share and client stickiness are driven by high brand recall.
• Excellent technical capabilities, high-quality infrastructure, and cutting-edge medical technologies, as well as a robust IT infrastructure.
• Professional leadership team with strong expertise in the industry.

Vijaya Diagnostic IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Dr. Lal Path Labs Limited	79.39
2	2	Metropolis Healthcare Limited	69.89

Vijaya Diagnostic IPO Details

IPO Opening Date	01 September 2021
IPO Closing Date	03 September 2021
Issue Type	Book Building
Face Value	Rs. 1 per  share
IPO Price	522 to 531 per equity share
Market Lot	28
Min Order Quantity	28
Listing At	BSE, NSE
Issue Size	35,688,064 Equity shares
Fresh Issue	0
Offer for Sale	35,688,064 Equity shares

Note:

Employee Discount: INR 52

Vijaya Diagnostic IPO Date

Vijaya Diagnostic IPO opening date is 01 September 2021, and the closing date is 03 September 2021. The issue may list on 14 September 2021.

IPO Open Date	01 September 2021
IPO Close Date	03 September 2021
Basis of Allotment Date	08 September 2021
Initiation of Refunds	09 September 2021
Credit of Shares to Demat Account	13 September 2021
IPO Listing Date	14 September 2021

Vijaya Diagnostic IPO Subscription

Date	Day	QIB	NII	Retail	Employees	Total Subscription
01 Sep 2021	1	0.23	0.01	0.46	0.24	0.30
02 Sep 2021	2	0.32	0.05	0.74	0.52	0.47
03 Sep 2021	3	13.07	1.32	1.09	0.98	4.54

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Vijaya Diagnostic IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Vijaya Diagnostic IPO.

Vijaya Diagnostic IPO GMP

Vijaya Diagnostic IPO Grey Market Premium is -12. You can check out other IPO GMP on below Links.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
13 September 2021	-12	0	0
12 September 2021	-4	0	0
11 September 2021	-8	0	0
10 September 2021	0	0	0
09 September 2021	-8	0	0
08 September 2021	-5	0	0
07 September 2021	0	0	0
06 September 2021	1	500	100
05 September 2021	3	1100	100
04 September 2021	5	3500	400
03 September 2021	8	3100	300
02 September 2021	12	2400	250
01 September 2021	13	1700	200
31 August 2021	18	1200	150
30 August 2021	25	2900	300
29 August 2021	35	2300	250
28 August 2021	38	3400	350
27 August 2021	42	1800	200
26 August 2021	45	2500	300
25 August 2021	No Trade	No Trade	No Trade

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Vijaya Diagnostic IPO Review

Vijaya Diagnostic IPO have huge possibilities of increase in revenue due to covid 19 in this year & coming year till the time corona virus will not disappear. While management was confident in most of the interviews. So you can apply for long term without any issues.

While talking about listing gain it will be totally depend on the market volatility. According to the current situation,  this IPO will list on near to INR 550 to 560.

Vijaya Diagnostic IPO Risk

• If they are unable to preserve and expand their brand name and brand image, their company and future may suffer.
• The COVID-19 epidemic may have a negative impact on their company, and the long-term consequences are unknown.
• Any disruptions at their flagship centre and other diagnostic centres might impact their capacity to conduct diagnostic tests, which could hurt their business.
• Their capacity to execute operations might be affected if their equipment fails or malfunctions.
• Sura Suprita Reddy, their CEO, is accused in a criminal case.
• They work in a very competitive business climate, and their inability to compete successfully might damage their company.

Other Threats

• Their failure to preserve or exploit their intellectual property rights, as well as their failure to comply with the intellectual property rights of others, may have a negative impact on their business.
• The government’s or other authorities’ implementation of pricing policies might have a negative impact on their organization.
• Cyber attacks, noncompliance with privacy laws and regulations, and modifications in such laws and regulations may have a negative impact on their business.
• There are ongoing legal procedures involving their Company, subsidiaries, and directors that might have a negative impact on their operations.
• They are exposed to foreign exchange risks, which might have a negative impact on our operating performance.
  Their financial statements do not account for a contingent liability that they have.

Business Model

As of March 31, 2021, They provide a comprehensive variety of about 740 routine and 870 specialised pathology tests, as well as approximately 220 basic and 320 advanced radiology tests, covering a wide range of specialities and fields.  Their test menu includes :

• Pathology tests ranging from basic biochemistry and clinical pathology to cytogenetics and high-end molecular diagnostic tests.
• Radiology tests ranging from basic echocardiograms, X-rays and ultrasounds.
• Advanced radiology tests including computerised tomography (“CT”) scans, magnetic resonance imaging (“MRI”) scans, single photon emission computed tomography (“SPECT”)
• Advanced positron emission tomography CT (“PET CT”).

Value Added

They offer value-added services including home specimen collection, house visits, and different delivery or access options (i.e., at diagnostic centres, SMS, email, and online portal) for test reports for the comfort of their clients.

Clients choose us as their desired diagnostic service vendor for a variety of reasons which are

• The strength of their brand
• Integrated services model
• Quality of their diagnostic services
• Centre infrastructure and client experience
• Comfort of their operational network
• Home collection in their core geographies

Business Approach

They’ve established a “hub and spoke” approach, in which specimens are gathered in numerous places within a catchment zone or district and then sent to their reference laboratories for diagnostic testing.

This strategy allows them to achieve higher economies of scale while also improving the consistency of their testing methods and outcomes.

Integrated diagnostics services (pathology and radiology tests under one roof) are available at all of their locations, with smaller spokes offering pathology and basic radiology tests and hub facilities (ARCs) providing pathology, essential radiology tests, and advanced radiology tests including MRI, HRCT, SPECT, and PET CT.

Team

As of March 31, 2021, their diagnostic services are supplied by a medical professional team in their operating network that includes 71 laboratory doctors, 19 physicians, 106 radiologists, and 1,038 well-trained technical personnel.

Awards

Several accolades have been given to them throughout the years, recognising the strength of their brand and their commitment to providing outstanding diagnostic services.

1. “One of the Best Healthcare Brands-2021” by The Economic Times in 2021.
2. “For excellence in Quality and Accuracy” under the category Leading Diagnostics company with Excellence in Quality and Safety at the Diagnostics Leadership Summit in 2021.
3. “Most Trusted Diagnostic Centre of the year – India” at the Indo-Arab Leaders Summit & Awards in 2019.
4. “Best Diagnostic Centre of the Year” by Times Healthcare Achievers, The Times of India in 2019.4
5. “10 Most Trusted Brands of the Year” by the Business Sight Magazine in 2019.
6. “ Telangana Healthcare Leadership Award” by the Telangana Government in 2018.

Promoters

• Dr. S. Surendranath Reddy

Promoter Holding

Pre Issue Share Holding	37.97%
Post Issue Share Holding