Krsnaa Diagnostics IPO is getting launched for subscription on Wednesday 04, August 2021, and will be available for subscription till Friday, 04 August, 2021.
The company is looking to raise Rs.1213.3 crore through public issue which includes fresh issuance of shares worth Rs.400 crore and offer-for-sale (OFS) of shares worth Rs 813.3 crore by private equities.
The equity shares of Krsnaa Diagnostics Limitedare proposed to be listed on both BSE and NSE.
The Krsnaa Diagnostics IPO issue will be sold in the price band of Rs 933-954 per share and the minimum lot quantity is 15 shares and in multiples thereof translating to a minimum investment of Rs 14,310 at upper end.
The latest Grey market premium price (GMP) for Krsnaa Diagnostics IPO were seen up by more than 41.8% and were trading around Rs.400-410 as of today, This means people are expecting it to open on listing day to be at least at Rs.1330 or more.
Having said that GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
One must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the Krsnaa Diagnostics IPO let us talk about in brief about the company and its financials and other details step by step.
About Krsnaa Diagnostics Limited (KDL):
Incorporated in 2010, Krsnaa Diagnostics (Krsnaa) is one of the largest differentiated diagnostic service providers in India. The company provides a range of diagnostic services such as imaging, pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centres Pan-India.
It mainly operates through PPP model, under which it collaborates with central, state and municipal government operated health and medical facilities for the deployment and operation of diagnostic centres.
It also partners with several private sector hospitals and health centres to establish diagnostic centres within their
premises. As of June FY21, it operated 1,823 diagnostic centres offering radiology and pathology services in 13 states across India.
It also operates one of India’s largest tele-radiology reporting hubs in Pune that is able to process large volumes of X-rays, CT scans and MRI scans round the clock and 365 days a year and allows it to serve patients in remote locations where diagnostic facilities are limited.
The company provides quality and inclusive diagnostic services at affordable rates across various segments. Since inception, it has served more than 2.3 crore patients.
For example, the cost of radiology tests it provides is 45-60% lower than market rates while the cost of pathology test are 40-60% lower than market rate.
The company believes that its brand is associated with quality diagnostic and healthcare services at affordable rates.
Krsnaa Diagnostics Limited Financials:
Krsnaa Diagnostics saw its revenue from operations jump 53.41% over the year earlier to Rs 396.45 crore in the fiscal ended March 2021. Of this, nearly Rs 147 crore was linked to Covid-related diagnostic tests during the year.
The company generated Rs 267.57 crore, or 67.49% of its revenue from operations, from public health agencies. It reported Ebitda worth Rs 93.82 crore in FY21 compared with Rs 62.81 crore in a year earlier.
Krsnaa Ebitda margin stood at 23.7% during the year compared with 24% in FY20 whereas net profit for FY21 is at Rs 31.4 crore compared with Rs 13.53 crore in the year earlier.
The company is Priced at FY21 EV/EBITDA of 32x on upper band.
The company has a strong pan-India presence in high capital incentive imaging and pathology services mainly in Tier II and III government hospitals via PPP tender contracts.
In addition to the PPP segment, the company has been growing its collaboration with private healthcare providers to operate diagnostic centres within their facilities.
However, generation of free cash flow is likely to remain a challenge as it operates in a high capex low opex segment.
Likewise, one need to also wait for more stability and consistency in the profitability measures, going ahead in the company. Therefore, high risk investors can subscribe it.
Having said that, As of Q1FY22, the company has established partnerships with six private medical colleges, 18 private tertiary hospitals and two private laboratories, reflecting its ability to provide quality diagnostic services in the private sector as well.
As of Q1FY22, it had 26 contracts with non-government customers to establish and operate diagnostic centres, respectively, and generated 128.886 crore revenue from such contracts in FY21.
Revenue from sale of service to public health agencies was 267.570 crore in FY21 and represented 67.49% of total revenue from operations.
Krsnaa Diagnostics Peers Comparison:
Krsna diagnostics listed peers are Metropolis healthcare and Dr. Lal Path labs.
Krsnaa Peer Comparison |
Total Income (Rs Crore) |
PAT (Rs Crore) |
Ebitda Margin (%) |
PE (x) |
RoNW (%) |
Krsnaa Diagnostics |
396.45 |
31.4 |
93.8 |
95.3 |
79.8 |
Metropolis Healthcare |
997.98 |
182 |
288 |
77.7 |
25.9 |
Dr Lal PathLabs |
1,581.26 |
290.8 |
436.3 |
94.3 |
23.4 |
In terms of market cap, Lal path currently stood at Rs.30,992.6 crore, metropolis is at Rs. 14754.5 and Krsnaa would be at Rs.2,994 crore.
Krsnaa Diagnostics IPO Details:
Krsnaa Diagnostics limited will sell shares at Rs 934-954 per share in its 3 day initial public offering starting on August 4 to 6, 2021.
The shares of Krsnaa Diagnostics IPO will be allotted on 11 August, 2021, The tentative date of Krsnaa Diagnostics IPO listing is around 17 August, 2021.
Krsnaa Diagnostics Objects of the Offer:
The company plans to use Rs 150 crore to set up 29 diagnostic centres across Punjab, Maharashtra, Karnataka and Himachal Pradesh. It also plans to repay/ pre-pay debt worth Rs 146 crore to the lenders in the current financial year. The company’s total borrowings stood at Rs 231.7 crore as of March 2021.
Frequently Asked Question (FAQ):
1.What Is The Symbol For Krsnaa Diagnostics Limited ?
Ans: The Symbol is KRSNAA
2.When Krsnaa Diagnostics IPO Coming?
Ans: The Issue Period for Krsnaa Diagnostics IPO is 4-Aug-2021 to 6-Aug-2021.
3. Post Modification Period For Krsnaa Diagnostics IPO?
Ans: The Post issue Modification Period for IPO is 9-Aug-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Krsnaa Diagnostics IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 9-Aug-2021 (upto 12:00 PM).
5. What Is The Issue Type For Krsnaa Diagnostics IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Krsnaa Diagnostics IPO?
Ans: The Price (Band) Range for Krsnaa Diagnostics is Rs.933 to Rs.954 per equity share.
7. What Is The Lot Size For Krsnaa Diagnostics IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Krsnaa Diagnostics IPO is of 15 Equity Shares and in multiples thereof 15 Equity Shares.
8. Who Are The Book Running Lead Managers For Krsnaa Diagnostics IPO?
Ans: The Book Running Lead Managers are, JM Financial Limited, DAM Capital Advisors Limited, Equirus Capital Private Limited and IIFL Securities Limited
9. What Is The Face Value For Krsnaa Diagnostics IPO?
Ans: The Face Value is of Rs.5 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Krsnaa Diagnostics IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Maximum Subscription Amount for Eligible Employee is Rs. 5,00,000
Discount of Rs. 93 per Equity Share for applicants in the Eligible Employee Category
The Name of the Registrar is KFin Technologies Private Limited
The Contact person name number and Email id is M Murali Krishna,+91 40 6716 2222, krsnaa.ipo@kfintech.com
The Address of the Registrar is Selenium Tower B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda Serilingampally, Hyderabad 500 032, Telangana, India
Where To Check Krsnaa Diagnostics IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
NSE
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
https://www.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp
BSE
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
https://www.bseindia.com/investors/appli_check.aspx
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
Conclusion:
Crisil Research estimates the size of the diagnostic industry in India to be between 71000 crore and 73000 crore in FY21, clocking a CAGR of 13-14% in FY17-21, mirroring the growth from healthcare delivery services.
The industry is expected to grow at 14-17% and achieve a value of 92000- 98000 crore in FY20-23. Going forward, the government’s share within the diagnostic industry is projected to grow at 14-17% CAGR to 12500-13500 crore in FY20-23, driven by government-led programmes.
Since commencing, it has completed 32 PPP contracts and as of Q1FY22 operated 1,797 diagnostics centres in public healthcare facilities across 13 states. The company believes it is a preferred partner for public health agencies in
implementing diagnostic centres.
This is evident from its bid-win rate of 77.59% for tenders that it has bid for since commencement of operations,
including a 100% qualification rate on technical grounds.
Let us checkout some of the strengths and risk factors for Krsnaa Diagnostics Ltd
Some of the qualitative factors and strengths of Krsnaa Diagnostics
- Scalable, agile business model with efficient cost structure
- Quality services at affordable rate
- Long term contracts for better visibility
Some of the Risk Factor for Krsnaa Diagnostics :
- Payments depends on contracts
- Uncertainty on winning future contracts
- Impact of pandemic
- Capital incentive business
- Inability to revise price in tender business
Therefore, it is always advisable to go through Krsnaa Diagnostics IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
For More Information Do Checkout Basics of IPO and FAQ Here.
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All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.
