Vijaya Diagnostic IPO: A Detailed Guide

August 30, 2021 IPO 5 min read
Vijaya Diagnostic IPO

Vijaya Diagnostic IPO details
Issue Period 1-Sep-2021 to 3-Sep-2021
Price Range Rs.522 to Rs.531
Bid Lot 28 Equity Shares and in multiples thereof
Minimum Order Quantity 28 Equity Shares
Maximum Order Quantity 364 Equity Shares
Maximum Subscription Amount for Retail Investor Rs. 2,00,000
IPO Market Timings 10.00 a.m. to 5.00 p.m.
Allotment Date 8-sep-2021
IPO listing Date 14-Seo-2021

With the trend of IPOs skyrocketing due to their popularity among investors, Vijaya Diagnostic IPO is one of the few forthcoming in the health care sector with considerable potential. Healthcare has always remained a thriving industry, mainly due to significant technological advancements creating efficient services while providing vital solutions to serious health problems. Diagnostic services have remained a substantial part of the healthcare industry and are likely to record a compounded annual growth rate of 12%-13% in the near future.

About Vijaya Diagnostic

Vijaya Diagnostics was founded in 1981, with Dr. S. Surendranath Reddy, the promoter of the company. The massive operations of Vijaya Diagnostic in pathology and radiology testing services have made it the fastest-growing diagnostic chain in the South Indian region. The company has a vast network of operations spread across 13 cities in Andhra Pradesh and Telangana and includes cities like Delhi, the National Capital Region, and Kolkata. The services are provided through 80 diagnostics centres and 11 reference laboratories situated in different parts of these states and cities.

Accreditations held by Vijaya Diagnostic include the National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditations (held by all the laboratories of Vijaya Diagnostic and Patient Safety & Quality of Care (NABH) accreditations (held by three diagnostic centers). Apart from these, the company has performed 0.89 million radiology and 6.20 million pathology tests during the year that ended on March 31, 2021, for approximately 2.63 million customers, showcasing a noteworthy performance.

Competitive strengths of Vijaya Diagnostics

Few essentials that make Vijaya Diagnostic stand out from the rest of its competitors include:

  • It is the fastest growing and largest diagnostic network operating in South India.
  • It has national accreditation held by all the laboratories.
  • Provides testing services with the latest IT equipment and cutting-edge testing technologies.
  • Superior brand value with affordable and highly efficient customer service.
  • Apart from individual customers, a clientele of more than 200 corporate customers.
  • In-depth experience of more than 4 decades of providing outstanding testing services.

The above points provide a basic fundamental analysis to the investors looking forward to investing in this IPO. However, you cannot invest in any company without knowing its financial status, like the Vijaya diagnostic IPO price. Financial analysis plays an essential role in understanding credibility and performance. Let’s take a peek at the financials of Vijaya Diagnostic.

Financial Analysis of Vijaya Diagnostic

The main motive of any business is profitability, whether it can generate sustained revenues over a period of time for its shareholders. After its establishment in 1981, Vijaya Diagnostic has remained profitable consistently over the past years. The financial viability of any company is measured through three primary parameters viz., its revenues, its profits, and its assets. The details of which are as given below:

Particulars For the year ended (Rs. in Millions)
31-03-2021 31-03-2020 31-03-2019
Total Revenues [A] 3885.93 3541.82 3029.44
Total Expenses [B] 2764.69 2707.55 2376.26
Total Profits [C=A-B] 849.11 625.07 462.72
Total Assets 5409.40 4822.56 4064.3

These details signify that the company has been growing at a fast pace, which is evident by the increasing trend of revenues, profits, and assets. By taking a closer look at the profits, they are almost on the verge of doubling, rising from 462.72 on 31-03-2019 to 849.11 on 31-03-2021. However, it is pertinent to note that such a tremendous increase is in respect to profits only. Revenues witnessed growth at a stable rate, thereby signifying that the company is striving its best to become more and more cost-efficient to increase its profitability.

Significant Competitors of Vijaya Diagnostic

Major players in the segment of diagnostic and testing services that pose a competition to Vijaya Diagnostic [as of 2021] includes the following [in terms of decreasing order of market capitalisation:

Companies Face value per share Market Capitalization [Rs. in Crores]*
Dr. Lal PathLabs Limited 10 Rs. 31,813 Crores
Narayana Hrudayalaya Limited 10 Rs. 10,135 Crores
Aster DM Healthcare Limited 10 Rs. 9815 Crores
Krsnaa Diagnostics Limited 5 Rs. 2866 Crores
N G Industries Limited 10 Rs. 16 Crores

*The market capitalisation is as of August end.

Vijaya Diagnostics IPO – All you need to know

  • Objects of the Issue

The funds raised by the company through initial public offering will be utilised for the following purposes:

  • Achieving the benefits of listing its shares on the stock exchanges.
  • To issue an Offer For Sale (OFS) of 35,688,064 shares.

Timeline of the IPO- Important Dates

The timeline of this IPO is as follows:

IPO Open Date 1st Sept. 2021
IPO Close Date 3rd Sept. 2021
Basis of Allotment Date 8th Sept. 2021
Initiation of Refunds 9th Sept. 2021
Credit of shares to Demat Account 13th Sept. 2021
IPO Listing Date 14th Sept. 2021

Therefore, the Vijaya Diagnostic IPO launch date is 1st Sept. 2021. The investors looking forward to investing in Vijaya Diagnostics should apply between the IPO open date and close date, i.e., between 1st Sept. 2021 – 3rd Sept. 2021.

  • Important financials relating to the IPO

The shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) with a face value of Rs. 1 per equity share. The market lot size shall consist of 28 shares each. The Vijaya Diagnostic IPO expected share price would be between the price band of Rs. 522 – Rs. 531 per equity share. Therefore, the total issue size is Rs. 1862 crores to Rs. 1894 crores. An individual retail investor can apply for a minimum of one lot and a maximum of 13 lots. The IPO will result in a change in the promoter’s holding, which is as under:

Pre-IPO promoter’s holding 59.78%
Post-IPO Promoter’s holding 54.78%

Reasons to invest in Vijaya Diagnostic IPO

The primary reasons for investing in this IPO are:

  • Investing in a thriving industry like health care
  • Investing in a chain with a prominent presence for around 40 years
  • The company is looking forward to expanding its operations in Eastern India, with its vast potential
  • For taking benefits of the listing gains

How to Apply for Vijaya Diagnostic IPO?

If you are an existing stock market investor, you may apply for Vijaya Diagnostic IPO through your Demat account. However, if you are new to stock market investing, then you will first need to open a Demat account to start investing. This is a one-time procedure and will be helpful in all your future stock market transactions as well. The easiest way to open a Demat account is to visit the TradeSmart platform, which facilitates the online opening of the account. After fulfiling the simple process and furnishing the primary documentation, your Demat account will be opened, and you can proceed to invest in Vijaya Diagnostic IPO.

TradeSmart provides you with a BOX assistant to help you with the application process. You just need to select the ‘IPO’ option from the ‘Portfolio’ menu visible in your TradeSmart Box Account. After selecting, search for Vijaya Diagnostic Centre Limited IPO from the current and upcoming IPOs list. Once you have located the same, click on the ‘Bid’ button to bid in the IPO. TradeSmart facilitates payment through UPI IDs linked to your bank account, making it increasingly convenient for investors.

Furthering the process, submit your bid at the cut-off price already mentioned or any other price aligning with your investment budget. However, you will have to place a minimum bid of one lot consisting of 28 shares, and you can increase the same in multiples thereof. Also, the bid for a maximum of 13 lots can only be placed. Finalise the quantity and price as per your requirement. Confirm that you have read the Red Herring Prospectus and IPO Draft Prospectus and accept the UPI mandate generated on your UPI application.

The procedure is completed, and the amount invested will be blocked in your bank account until the allotment of the shares. Wait until the allotment date to know the results as to how many lots are allotted to you.


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