The Krsnaa Diagnostics shares made their debut on the stock markets on Monday. Krsnaa Diagnostics shares were listed at over a 5 per cent premium at Rs 1,005.5 per share on the National Stock Exchange (NSE) from the issue price of Rs 954 apiece. On the Bombay Stock Exchange (BSE) stock opened at Rs 1,025, a 7 per cent premium on the bourses. The Krsnaa Diagnostics IPO opened its Rs 1,213.33 crore issue and had a 3-day subscription after which it closed. The issue saw a stellar subscription from investors during the days it was trading as the investors for the issue had subscribed to it a total of 64.38 times over those three days.
Earlier the stock was expected to list at a price of more than Rs 1,250 per share on the BSE and NSE. It was anticipated that this listing would be over a 30 per cent premium against the final issue price of Rs 954 per share. The public issue was highly anticipated in this regard due to its tremendous responses garnered from investors of the IPO.
The Krsnaa Diagnostics IPO was subscribed by the non-institutional investors (NIIs) the most at 116.30 times their allotted shares. Following close being, the qualified institutional buyers (QIBs) saw a healthy subscription of 49.83 times for the issue as it closed on the third day. The retail investor segment for the issue had subscribed to it 41.95 times over their shares for the IPO. There were also subscriptions from the employees of the company who subscribed to the IPO around 98 per cent or 0.98 times their allotted shares.
The public issue which opened on August 4 and closed on August 6, had a fresh issue and an offer for sale (OFS). The fresh issue consisted of Rs 400 crore, while the OFS aggregated up to Rs 813.33 crore with a total of 8,525,520 equity shares with a price band of Rs 933 to Rs 954 per equity share. The IPO also came with a face value of Rs 5 per share.
Speaking on the revenue and the growth that the company has seen over the years, Ventura said in a note, “During FY18-21, KDL’s revenue / EBITDA / Adj PAT grew at a CAGR of 54.5% / 50.0% / 102.2% to INR 397 cr / INR 94 cr / INR 32 cr, respectively. However, EBITDA margins deteriorated by 218bps (to 23.7%) due to a rise in the sourcing cost of medical consumables, which resulted in a 202bps decline in RoIC to 19.5% in FY21. The adjusted PAT margin improved by 447bps to 8.1%, which resulted in a positive RoE of 13.8%. The company reported a negative RoE of 16.9% in FY18 due to its negative net worth of INR 23 cr.”
Ventura then went on to add, “We expect KDL to grow its revenue at a CAGR of 39.8% to INR 1,083 cr over the period of FY21-24E. EBITDA and PAT over the same period are set to grow at a CAGR of 41.1% to INR 264 cr and 71.5% to INR 161 crore, respectively.”
In a note regarding the financial performance of Krsnaa Diagnostics, Geojit said in a note, “Revenue from sale of service to public health agencies in PPP model was 67% of the total revenue from operations in FY21 while the rest came from non-government customers (33%) such as private medical colleges, private laboratories etc. The net revenue from operations increased at a CAGR of 37.6% from Rs.209.2cr in FY19 to Rs.396.5cr with 41% revenue from radiology services and 59% from pathology in FY21.”
“KDL reported one-time gain from fair value movement of CCPS (Compulsory Convertible Preference Shares) amounting to Rs. 252.8cr in FY21 while it reported loss in the previous two years (Rs.177cr&Rs.95.5cr). Adjusted for fair value and deferred tax arising out of it, net profit for FY21 stood at Rs 31.4cr compared with Rs.13.5cr in the year earlier,” added Geojit.
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