Vijaya Diagnostic Centre Limited opened its initial public offering (IPO) on September 1 and closed after three successful days of trading, on September 3. Now the company is going ahead with its listing on the stock exchanges, which is set to take place on September 14. It should also be noted that the accreditation of the shares to the successful investors happened a day prior to the listing on September 13. The company saw a total subscription of 4.54 times over the three days that it was open for trading. The Vijaya Diagnostic Centre IPO received bids for 11.36 crore equity shares against the IPO size of 2.50 crore equity shares on the final day of bidding, according to subscription data on the exchanges.
Out of all the investors, the ones who had subscribed the most were the qualified institutional buyers (QIBs) who had subscribed around 13.07 times to the IPO. The non-institutional investors had subscribed just 1.32 times and the retail individual investors had subscribed 1.09 times to the issue. There was a portion of the subscriptions done by the employees, which stood at 0.98 times. The issue saw its basis of allotment happen on September 8, 2021, just a few days after the trading closed.
The grey market premium for the issue at the time of this article stood at Rs 5 as per information on IPO Watch. This indicated that the issue was trading at a premium of Rs 527 to Rs 536 per equity share on the unlisted grey market
Speaking on the upcoming listing of the company, Yash Gupta, Equity Research Analyst for Angel Broking Ltd said, “Vijay Diagnostic Centre Limited to list on stock exchanges on 14th September 2021, the overall retail portion got subscribed 1.09 times so it was expected that almost all the investors got the allotment. Vijaya Diagnostic IPO is priced at Price to Earnings of 64.3 times and EV/EBITDA of 30 times at the upper price band of the IPO based on FY2021 numbers, which is in line with the listed peer group.”
“We are not expecting any big listing gain from Vijaya Diagnostic Centre Limited IPO as we believe that all the short term positive has been priced in the IPO price i.e Rs 531. If we look at the current Grey Market Premium, as per market news GMP is at Rs 5 i.e 1 per cent at the upper price band of the IPO. We suggest retail investors who got the allotment to sell the stock at a price range of Rs 540- Rs560 and the investors who haven’t received the allotment should not buy the stock at listing,” said Gupta.
The Vijaya Diagnostic Centre IPO had an issue size of Rs 1,895.04 crore, which was entirely consistent of an offer for sale (OFS) that contained 35,688,064 equity shares. The issue also had a face value of Rs 1 per equity share. The company had also managed to mobilise Rs 566 crore from anchor investors at the upper end of the price band, August 31, a day before the issue opened for trading. The object of the offer was to sell off the shares and get the company listed on the stock exchanges. The promoter for the issue was Dr S Surendranath Reddy.