About the Company:,
Krsnaa Diagnostics Ltd provides wide range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centers pan-India.
Company provides quality and inclusive diagnostic services at affordable rates across various segments. Since inception, company has served more than 13 million patients.
Company is the fastest growing diagnostic chain in India on multiple parameters including operating income, operating profit before depreciation, interest and tax (“OPBDIT”) and profit after tax between Fiscal 2017 and Fiscal 2020 and volume of tests conducted between Fiscal 2018 and Fiscal 2020.
Company has an extensive network of integrated diagnostic centers across India primarily in non-metro and lower tier cities and towns.
Company has entered PPP contracts with NHM funded central government agencies, state healthcare agencies, municipal corporation and Indian Railways hospitals.
Company operate one of India’s largest teleradiology reporting hubs in Pune that is able to process large volumes of X-rays, CT scans and MRI scans round the clock and 365 days a year, and allows company to serve patients in remote locations where diagnostic facilities are limited.
As of December 31, 2020, company operated 1,801 diagnostic centers offering radiology and pathology services in 13 states across India.
As of December 31, 2020, company had a team of 121 radiologists, 33 pathologists, 7 microbiologists and more than 2,300 qualified professionals including clinicians, technicians and operators.
Services offered by the Company:
- Radiology (MRI Scan, CT Scan, X-ray, Mammography, Ultrasound and Colour Doppler)
- Pathology Services.
- Tele-radiology Services.
- Home Collection Services.
Number of diagnostic centers operated by the Company:
Number tests conducted by the Company:
Company’s Operations during COVID Pandemic:
Company’s existing large-scale operations have enabled company to address diagnostic requirements on account of the COVID- 19 pandemic and as part of company’s response to the COVID-19 pandemic, company’s diagnostic centers have performed over 750,000 COVID-19 PCR tests in the nine months ended December 31, 2020.
Company also established India’s first Indian Council of Medical Research (“ICMR”) accredited COVID-19 testing facility under the PPP model in Pune and is accredited by the ICMR.
Continue to expand presence across India.
Company intends to continue to expand the network of diagnostic centers and services within India and in particular increase company’s presence in geographies where company is already present.
Company intend to grow the network across all states in India by leveraging company’s experience of deploying and operating diagnostic centers.
Company provides Services at Competitive rates.
The cost of radiology tests provided by the company is 45% – 60% lower than market rates while the cost of pathology tests are 40% – 80% lower than market rates.
In Fiscal 2018, 2019 and 2020 and in the nine months ended December 31, 2020, we served 1.65 million, 3.25 million, 5.27 million and 3.58 million patients, respectively.
Company believes that the large network of diagnostic centers, together with the quality of services at competitive rates, have been key factors in the significant growth company has experienced so far.
Competition in the Business:
The diagnostic industry is highly competitive and fragmented. Some of the major diagnostic laboratory services providers in India currently include Dr. Lal Path Labs, SRL Limited, Metropolis Healthcare, Suburban Diagnostics, Vijaya Diagnostic Centre and Thyrocare Technologies.
Presence of Players in the PPP model.
Management Team:
- Mr. Rajendra Mutha (Designation: Executive Chairman and Whole-time Director)
- Ms. Pallavi Bhatevara (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs. 898 cr)
- Each of the Selling Shareholders will be entitled to the respective portion of the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 400 cr)
- Proposing to finance the cost of establishing diagnostics centers at Punjab, Karnataka, Himachal Pradesh and Maharashtra.
- Repayment/pre-payment, in full or part, of certain borrowings availed by our Company; and
- General corporate purposes.
Positives for the Company:
Extensive footprint across India with robust infrastructure.
- Company’s network of diagnostic centers spans 13 states across India and as of December 31, 2020 were present in over 1,800 locations.
- Company commenced operations in Fiscal 2011 with two radiology diagnostic centers and as of December 31, 2020, company has established 1,364 radiology diagnostic centers and 465 pathology diagnostic centers including 425 collection centers.
Tapping the Untapped PPP segment of healthcare services.
- The PPP segment of healthcare services is a large target market, representing a market opportunity of Rs.95 billion – Rs.100 billion in Fiscal 2021.
- Going forward, this market is expected to grow at a CAGR of 14% and 17% between Fiscal 2021 and 2023 to reach Rs.125 billion and Rs.135 billion on the back of higher government spending in the PPP segment.
- Given company’s track-record of operating in the PPP segment, company believes that it is well positioned to benefit from the significant growth opportunity in this segment.
Company Plans to further Expand the Business.
- Company intends to further grow the business organically by entering into partnership arrangements with public health agencies, private hospitals, medical colleges and community health centers as well as inorganically through value-enhancing acquisitions to consolidate the business and achieve leadership position.
- Company will continue to expand the network of diagnostic centers in existing and new territories and add new services as the company grows its operations.
- Company believes that this will allow company to leverage increasing operating synergies and benefit from economies of scale, to drive earnings growth, margin improvement, and increasing return on capital invested.
Unique and scaled diagnostics company.
- Company is a large and differentiated diagnostic service provider and provides a range of technology enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centers pan-India.
- In the PPP segment, company collaborates with central, state and municipal government operated health and medical facilities for the deployment and operation of the diagnostic centers.
- Company also partners with several private sector hospitals and health centers to establish diagnostic centers within their premises.
Wide Range of Services offered in the Diagnostic Segment.
- Company offers imaging (including radiology), pathology/clinical laboratory and tele-radiology services across India.
- In the radiology segment, company provides X-rays, CT scans, MRI scans, ultrasounds, bone mineral densitometry, mammography amongst others.
- In the pathology segment, company provides a spectrum of services ranging from routine tests such as CBC or blood glucose to highly specialized investigations for infectious diseases, cancer markers, hormonal assays, and therapeutic drug assays.
- Company also provides home collection of samples for convenience of end-customers.
Successfully Executed projects in public and private healthcare segment.
- Since inception and as of December 31, 2020, company has been awarded 33 contracts on a PPP basis, of which 31 projects have been executed while in the private healthcare segment and have 20 active collaborations.
- Company operates a hospital partnership model where diagnostic centers operated by the company are located within existing premises of hospitals and health centers and support them with onsite testing.
Providing Diagnostic services to the mass segment.
- Company’s business is focused on providing diagnostic services to the mass segment, particularly in tier II and tier III cities and towns in India in addition to metros and tier I cities.
- Company’s patient base includes large segments of government employees and their families, including public administrative officials, defence personnel, members of the judiciary and patients covered under the National Health Scheme.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 110.4 | 214.3 | 271.3 | 661.4 |
| Net Profit | (-60.1) | (-58.0) | (-111.9) | 184.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Krsnaa Diagnostics Ltd | 5 | 12.25 | 77.87 | 79.76% | 85.27 |
| Metropolis Healthcare Ltd | 2 | 25.25 | 93.33 | 24.32% | 103.40 |
| Dr. Lal PathLabs Ltd | 10 | 27.37 | 101.03 | 21.88 | 123.92 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 4th August 2021 |
| Issue Closes on:. | 6th August 2021 |
| Issue Price | Rs.933 – 954 |
| Face Value | Rs.5 |
| Retail Category Allocation | 10% |
| Minimum Lot | 15 shares |
| Minimum Investment | Rs. 14,310 |
| Issue Constitutes | 43.36% |
| Issue Size | Rs. 1298 cr ($175 million) |
| Market Cap | Rs. 2994 cr ($404 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 41,92,872 |
| Equity Shares Offered (OFS) | 94,16,377 |
| Equity Shares Offered (Fresh + OFS) | 1,36,09,249 |
| Equity Shares Prior to the Issue | 2,71,91,528 |
| Equity Shares after the Issue | 3,13,84,400 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 11th August 2021 |
| Initiation of Refunds | On or Before 12th August 2021 |
| Credit of Equity Shares: | On or Before 13th August 2021 |
| Listing Date: | On or Before 17th August 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 37,52,625 | 0.48 | 0.50 | 49.83 |
| NII | 18,76,312 | 0.15 | 4.76 | 116.30 |
| Retail | 12,50,874 | 9.59 | 22.09 | 41.81 |
| Employee | 2,32,288 | 0.21 | 0.52 | 0.98 |
| TOTAL | 71,12,099 | 1.98 | 5.42 | 64.36 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 12.25 | 77.87 | 79.76% | 85.27 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Krsnaa Diagnostics Ltd S.No. 243, A-Hissa No. 6, CTS No. 4519, 4519/1 Near Chinchwad Station, Chinchwad, Taluka – Haveli, Pune – 411 019 Telephone: +91 020 4695 4695; E-mail: cs@krsnadiagnostics.com; Website: www.krsnaadiagnostics.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium Tower B Plot 31 & 32, Gachibowli Financial District, Nanakramguda Serilingampally, Hyderabad 500 032 Telephone: +91 40 6716 2222 Email: krsnaa.ipo@kfintech.com Website: www.kfintech.com |
