Vijaya Diagnostic IPO - Healthcare chain Vijaya Diagnostic Centre Limited will be launching its Initial Public Offering (IPO) on 1st September. The three-day IPO will end on 3rd September. The price band has been fixed at Rs 522-531, PTI said reporting the company. 

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The company is planning to raise Rs 1,895 crore through the initial share-sale offer. 

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The Vijaya Diagnostic Centre IPO is entirely an Offer for Sale (OFS) of 35,688,064 equity shares as per the information in the Red Herring Prospectus filed by the company with market regulator Securities and Exchange Board of India (SEBI). Investors willing to invest in this public issue can also find it on the NSE website.  

For retail investors, the shares that have been allocated are not less than 12,438,323 equity shares as per the RHP. 

The equity shares will be off-loaded by the promoter S Surendranath Reddy and investors Karakoram Limited and Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I.

As a part of the offer for sale, Reddy will sell 50.98 lakh equity shares, while Karakoram and Kedaara Capital will off-load 2.95 crore equity shares and 11.02 lakh shares respectively. 

The initial share-sale will see stake dilution of 35 per cent by promoter and existing shareholders.
At present, promoter and promoter group own 59.78 per cent shareholding in the company. This included Reddy's 37.78 per cent stake. 

Karakoram and Kedaara Capital hold 38.56 per cent and 1.44 per cent stake, respectively, in Vijaya Diagnostic. 

At the upper end of the price band, the initial share-sale is expected to fetch about Rs 1,895 crore.

Half of the issue size has been reserved for qualified institutional investors (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. 

Investors can bid for a minimum of 28 equity shares and in multiples of 28 equity shares thereafter. 

Utilisation of the Net Offer Proceeds by Selling Shareholders  

The company will not directly receive any proceeds from the Offer and all the Offer Proceeds will be received by the selling shareholders, in proportion to the offered shares sold by the respective selling shareholders as part of the offer, the RHP said.  

Vijaya Diagnostic Centre offers pathology and radiology testing services to customers through its network of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, and the National Capital Region and Kolkata. 

ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company have been appointed as investment bankers for advising the company on its IPO.

Inputs from PTI