An Overview of the Company
Krsnaa Diagnostics, a diagnostics firm based in Pune, has filed a draft red herring prospectus with market regulator SEBI in order to launch an initial primary offering (IPO). The company may use the primary market to raise up to Rs. 1,200 crores.
Krsnaa Diagnostics’ IPO Details
- According to the DRHP, the IPO will consist of a fresh issue of Rs. 400 crores worth of shares and an offer of sale (OFS) of 9,416,377 equity shares with a face value of Rs. 5 each by existing shareholders and promoters.
- Main stakeholders in the OFS include Phi Capital Trust’s Phi Capital Growth Fund-I (1,600,000 equity shares), Kitara PIIN 1104 (3,340,713 equity shares), Somerset Indus Healthcare Fund (4,454,284 equity shares), and Lotus Management Solutions (21,380 equity shares).
- According to the DRHP, the company has set aside 75% of the offering for interested institutional buyers (QIB), 15% for non-institutional investors, and 10% for retail investors. Employees who qualify will receive shares worth Rs. 200 crores.
- JM Financial, DAM Capital Advisors, Equirus Capital, and IIFL Securities have been named as book running lead managers (BRLMs) for the offering. The registrar is KFin Technologies. The shares will be traded on the BSE and NSE stock exchanges.
- The proceeds of the offering will be used to meet Rs. 150.8 crores in capital expenditure requirements. In Punjab, Karnataka, Himachal Pradesh, and Maharashtra, the company will open diagnostics centres.
- The remaining proceeds from the offering will be used to repay and/or prepay certain borrowings totaling Rs. 125.7 crores in full or in part, as well as for general corporate purposes.
Financial Position & Performance
- The company’s overall income for the fiscal year ended March 31, 2020 was Rs. 271.38 crores, up from Rs. 214.31 crores the previous year. In FY2020, the company’s net loss increased to Rs. 111.95 crores, up from Rs. 58.05 crores the previous year.
- The company recorded a net profit of Rs. 195.93 and revenue of Rs. 562.7 crores for the nine-month period ended December 31, 2020, owing to a sharp drop in expenditures and higher revenue from operations due to the health crisis.
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