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IPO

Kedaara Capital-backed Vijaya Diagnostics files for listing

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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 aimed at giving Kedaara a partial exit from its five-year-old investment. The IPO is a pure offer for sale of 35.68 million shares by the promoters of the company and Kedaara Capital. The IPO will see the investor and promoters collectively dilute a 35% stake in the company, with Kedaara alone diluting 30%. Investment banks ICICI Securities, Edelweiss and Kotak Mahindra Capital are advising the company on its IPO. Vijaya Diagnostic offers pathology and radiology testing services through an extensive network, which consists of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in Telangana, Andhra Pradesh and in the National Capital Region and Kolkata. For the fiscal years 2021, 2020 and 2019, the company reported a revenue of INR 388.5 crore, INR 354.1 crore and INR 302.9 crore, respectively. It reported a profit of INR 84.9 crore, INR 62.5 crore and INR 46.2 crore, for the respective financial years. Kedaara Capital had picked up a 40% stake in the diagnostic chain in 2016 for over INR 400 crore.