India: Kedaara Capital-backed Vijaya Diagnostic files IPO papers

Photo by National Cancer Institute on Unsplash

Homegrown private equity firm Kedaara Capital-backed diagnostic chain Vijaya Diagnostic Centre Ltd has filed the draft red herring prospectus for its initial public offering (IPO), in a move to give the private equity investor a partial exit from its five-year-old investment.

Kedaara Capital had picked up a 40% stake in the diagnostic chain in 2016 for over Rs400 crore.

The IPO is a pure offer for sale of 35.68 million shares by the promoters of the company and Kedaara Capital. The company will not raise fresh capital for its business from the IPO.

The IPO will see the investor and the promoters collectively dilute a 35% stake in the company, with Kedaara alone diluting a 30% stake.

Vijaya Diagnostic is one of the largest integrated diagnostic chains in southern India. It offers a one-stop solution for pathology and radiology testing services through an extensive operational network consisting of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh and in the National Capital Region and Kolkata. During the fiscal year 2021, the company derived 96.2% of its revenue from operations from its core geographies of Hyderabad and the rest of Telangana and Andhra Pradesh.

For the fiscal years 2021, 2020 and 2019, the diagnostic chain reported a revenue Rs3,88.5 crore, Rs3,54.1 crore and Rs3,02.9 crore, respectively and it reported a profit of Rs84.9 crore, Rs62.5 crore and Rs46.2 crore, respectively.

Investment banks ICICI Securities, Edelweiss and Kotak Mahindra Capital are advising the company on its IPO.

This article was first published on livemint.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.