Vijaya Diagnostic Centre opens for IPO – Initial Public Offering from today i.e; September 1. It is a diagnostic centre located in major parts of South India. Money Control mentioned that four out of six brokerages assigned a subscribe rating to the issue. This is because the centre has a dominant position in South India. It has also got reasonable valuations, strong brand recall, customer stickiness, and one-stop solution at an affordable price.

Vijaya Diagnostic Centre

On August 31, the centre mobilised Rs 566.12 crore out of its total issue of Rs 1,895 crore from anchor investors. As Vijaya Diagnostic Centre opens IPO, it involves a complete offer for sale by promoter S Surendranath Reddy. Karakoram and Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 also promotes this offer. Therefore, the money will go to the selling shareholders.

On September 3, the IPO is said to close. The price band for the IPO is fixed at Rs 522-531 per equity share. Economic Times mentioned that the analysts underline that the share sale is happening at an expensive price. Some of them advise subscribing to the issue. The existing shareholders of Hyderabad-based Vijaya Diagnostic and the company are looking forward to raising Rs 1,895 crore through the primary offering. 

Vijaya Diagnostics Centre opens for IPO today but it has been around for a since 1981. It is a centre for pathology & radiology testing services. The company offers 740 routine and 870 specialized pathology tests and 220 basic and 320 advanced radiology tests. 

Economic Times reported the company has 81 diagnostic centres and 11 reference laboratories across 13 cities and towns. 

The Initial Public Offering (IPO) is the first time a company goes on to issue shares to the public. This happens because they want to become a public company. It means a privately-owned company until then becomes a publicly-traded company.

During an IPO the company goes from few private shareholders to public shareholders. There are many reasons why a company wants to invite the public to invest. One of the reasons is to raise capital for growth and expansion. This makes it possible for the owners and early investors of the company to sell their stake to make money.