Krsnaa Diagnostics Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Krsnaa Diagnostics IPO

Krsnaa Diagnostics IPO: Key Details

  • Grey Market Premium (GMP) today: 140 – 145

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Krsnaa Diagnostics , incorporated in 2010, is one of the largest differentiated diagnostic service providers in India. They provide 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 pan-India.

They are the fastest-growing diagnostic chain in India on multiple parameters including operating
income, operating profit before depreciation, interest, and tax (“OPBDIT”) and profit after tax between 2017 and 2020, and volume of tests conducted between 2018 and 2021 (amongst players with
revenues exceeding ₹1,500 million).

They focus on the public-private partnership (“PPP”) diagnostics segment and have the largest presence in the diagnostic PPP segment. They have an extensive network of integrated diagnostic centres across India primarily in non-metro and lower tier cities and towns. As of June 30, 2021, they operated 1,823 diagnostic centres offering radiology and pathology services in 13 states across India.

Competitive Strengths

  • Unique and scaled diagnostics company;
  • Strong brand equity;
  • Extensive footprint across India with robust infrastructure;
  • Business model with robust revenue visibility; and
  • Well positioned to capitalize on healthcare spending across public and private sectors.

Company Strategy

  • Continue to expand presence across India
  • Expand offering of diagnostic services with a focus on specialized diagnostics
  • Grow the digital footprint
  • Maintain high social impact
  • Continue to improve profitability and efficiency
  • Expand business and geographical footprint through opportunistic acquisitions

Proceeds from Krsnaa Diagnostics IPO will be used to:

  • Proposing to finance the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh and Maharashtra.
  • Repayment/pre-payment, in full or part, of borrowings from banks and other lenders availed by the Company; and
  • General corporate purposes

Krsnaa Diagnostics IPO: Financials

201920202021
Revenue from Ops₹209.23 Cr₹258.43 Cr₹396.46 Cr
Profit before Excep*₹(77.73) Cr₹(158.33) Cr₹295.45 Cr
Profit after Tax(58.06) Cr₹(111.95) Cr₹184.93 Cr
EPS (Basic)(120.28)(216.94)24.51
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS17.4053.6254.82
* Weighted Average for last 3 years

Krsnaa Diagnostics IPO: Comparison with listed industry peers

CompanyP/E (Cap)
Krsnaa Diagnostics54.82
Highest (Dr. Lal Path)94.32
Lowest (Metropolis Health)77.65
Sector Avg85.99

Krsnaa Diagnostics IPO Dashboard

Issue Details

TypeValue
Issue Size₹1,213.33 Cr
Fresh Issue₹400.00 Cr
Offer for Sale₹813.33 Cr
Face Value₹5/- per Equity Share
IPO Price₹933 – ₹954
Lot Size15 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open 04/08/2021
Bid Close 06/08/2021
Allotment Finalization11/08/2021
Initiation of Refunds12/08/2021
Credit of Shares13/08/2021
Listing Date17/08/2021

Lot Size and Price

LotsSharesAmount
115₹14,3100
13195₹1,86,030

Promoter Holding

HoldingPercentage
Pre-Issue74.63 %
Post-Issue[●] %

Krsnaa Diagnostics IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%[●] shares
NII15%[●] shares
RII (Retail)10%[●] shares
Total100%[●] shares

Krsnaa Diagnostics IPO: Risks

  • A substantial portion of the revenue from operations depend on payments under contracts with public
    health agencies
  • Most of the diagnostic centres have been established and are operated under public-private partnership
    contracts awarded by government agencies
  • Business interruption at the diagnostic centres and tele-radiology reporting hub could result in
    significant losses
  • The prices that they can charge for diagnostic services are dependent on recommended or mandatory
    fees fixed under the terms of the agreements entered into with public and private healthcare providers

For complete internal and external risk factors, you can refer to the RHP of the company.

Krsnaa Diagnostics IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032.

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

DAM Capital Advisors Limited
Equirus Capital Private Limited
IIFL Securities Limited
JM Financial Limited

Phone: +91 22 6630 3030 / +91 22 4646 4600
Email: [email protected]

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