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 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.