Krsnaa Diagnostics Limited IPO OPENS TOMORROW: Planning to SUBSCRIBE? 10 points INVESTORS need to know before applying for this IPO

The Initial Public Offering (IPO) of Krsnaa Diagnostics Limited will open for subscription on Wednesday, August 4, 2021.  The issue will close on Friday, August 6, 2021. The company has kept minimum bid lot as 15 equity shares and in multiples of 15 equity Shares thereafter. Krsnaa Diagnostics Limited IPO floor price has been set as 186.6 times the face value of the Equity Shares and the Cap Price is 190.8 the face value of the equity Shares. The price band of the IPO is Rs 933 to Rs 954 per equity share of face value of Rs. 5 each (“Equity Shares”)

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1. Company BUSINESS: As per CRISIL, Krsnaa Diagnostics is one of the largest differentiated diagnostic service provider in India.  

2. IPO SIZE: The Initial Public Offering comprises a fresh issue aggregating up to Rs 4,00 cr and an offer for sale (OFS) of up to 8,525,520 equity shares. The offer includes a reservation aggregating up to Rs 20 cr, for subscription by eligible employees.

3. IPO PROCESS: This Offer is being made through the Book Building Process wherein not less than 75% of the issue will be available to Qualified Institutional Buyers (QIBs). Krsnaa may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, out of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price.  

4. UNDER SUBSCRUIPTION CASE: In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75% of the Net Offer cannot be allotted to QIBs, the Bid Amounts received by the Company shall be refunded.
 

5. NIIs PORTION: Not more than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders (RIBs).  

6. ABSA APPLICATIOPN PROCESS: All Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Account (as defined hereinafter), in which the corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or under the UPI Mechanism, as the case may be.  

7. APPLICATION PROCESS:  Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.

8. OBJECTIVE: The Company proposes to utilise the net proceeds from the Fresh Issue towards: 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. 
 

9. LEAD MANAGERS: JM Financial Limited, DAM Capital Advisors Limited (Formerly IDFC Securities Limited), Equirus Capital Private Limited and IIFL Securities Limited are the book running lead managers to the issue
 
10. LISTING: Krsnaa Diagnostics Limited shares have been proposed to be listed on BSE and NSE.