KRSNAA DIAGNOSTICS LIMITED IPO details – Date, Price, Size, Allotment Status, Subscription

IPO-Note	KRSNAA DIAGNOSTICS LIMITED
Rs.933-Rs.954per Equity share	Recommendation: Listing Gains

Company Profile: –

Krsnaa Diagnostics is one of the largest Diagnostic service provider that provides technology enabled diagnostic services like Pathology laboratory, Tele-radiology services and Imaging services to Private and Public hospitals, community healthCentre at affordable prices.Company follows two segments diagnostic imaging/radiology services and Pathology Segment.Diagnostic imaging/radiology segment include conducting computed tomography (CT) scans,X-rays, magnetic resonance imaging (MRI) scans, ultrasounds, bone mineral densitometry and mammography. Pathology segment includes biochemistry, haematology, clinical pathology, histopathology and cytopathology, microbiology, serology and immunologyCompany follows PPP (Public Private Partnership) Model and has largest presence in diagnostic PPP Segment and have established 1797 diagnostic Centre under PPP agreements with Public health agencies. Company operates 1823 Diagnostic Centre across 13 states in India out of which 1797 diagnostic Centre pursuant to PPP agreements with public health agencies and served over 5.18 millions patients 1.88 million patients in FY21 and Q1FY22 respectively.

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Issue Details
Objects of the issue	·          To establish diagnostics Centre at Punjab, Himachal Pradesh,, Karnataka and Maharashtra. ·          To Repayment full or part of borrowings from banks and other lenders.. ·          To meet General corporate Purpose.
Issue Size	Issue Size – Rs.1213.33 Crore Fresh Issue- Rs.400 Crore Offer for Sale-Rs.813.33 Crore
Face value	Rs.5 Per Equity Share
Issue Price	Rs. 933– Rs. 954
Bid Lot	15shares
Listing at	BSE, NSE
Issue Opens:	Aug 4th2021 – Aug6th2021
QIB	75% of Net Issue Offer
Retail	10% of Net Issue Offer
NIB	15% of Net Issue Offer

 

Financial Performance:

 

 

Shareholding Pattern:

Shareholding Pattern	Pre- Issue	Post Issue
Promoters	31.62%	27.39%
Public	68.38%	72.61%

Source: RHP,,EWL Research,

Strengths:

• Scaled and Unique diagnostic company.
• Consistent financial performance and cot competitive approach.
• Robust Business Model.

Key Highlights:

• Revenue in FY21 Stood at Rs. 396.4 crore as compared to Rs.258.4 crore in FY20 witnessing the growth of53% Y-o-Yand a CAGR growth of 37.6% from FY19 to FY21.
• Revenue from Public health agencies and Private healthcare providers was 67.49% and 32.51% respectively.
• Adjusted EBITDA Stood at Rs.106 Crore witness the growth of 40% Y-o-Y in FY21.
• Profit after tax stood at Rs.185 crore in FY21 vs Negative Rs. (120) crore in FY20 and Rs.(58) crore in FY19. Profit in FY21 backed by Gain on fair value movement of Compulsory Convertible Preference Shares was Rs.2,527.84 million and accounted for 38.22% of total income in Fiscal 2021
• In FY21,Net profit margin stood at 47% in FY21.
• Cash flow from operations (CFO) stood at Rs.102.56 crore witness Y-o-Y growth of 171% and a CAGR growth of 32.7%.

Risk Factors:

• The charges are fixed under the under the contracts any pricing limits imposed by the government may limitability to revise the prices of the services.
• Company has a capital intensive business any insufficiencies in cashflow may affect operations of the company.

Outlook:

Krsnaa Diagnostic is diagnostic service provider that operates diagnostic Centre under a hospitalpartnership model which are established in public and private hospitals or community health Centre. Company has healthy cash and bank balance in FY21 and has reported exceptional gain on conversion of preference shares which turn around the profitability, due to higher receivables and capital intensive structure it could face short-term liquidity issues. As charges under PPP contract are fixed it could limit the upside In the charges and could impact the Top Line in the future.Recently, Government has announced Rs.50,000 crore to health sector guarantee coverage for scaling up Medical Infrastructure in Tier 2 Tier 3 cities that will help company to grow as it is the preferred partner for public health agencies and 77.59% of all tenders (by number) bid by the company granted to the itAt the higher end of the price band of Rs. 954, the stock is offered at a PE multiple of16.18x on FY21 Post issue EPS of Rs. 58.95 which is loweramong the peers.Thus,We would recommend  to this IPOfor Listing Gains.

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