The Initial Public Offering (IPO) of Krsnaa Diagnostics, one of India’s fastest-growing chains, is set to open for bidding tomorrow, i.e., August 4 and will end on August 6.
As reported by Mint, the price band of its IPO has been fixed at ₹933-954 per share. The company is aiming at an issue size of ₹12.1 billion at the upper end of the price band.
The IPO will comprise a fresh issue of ₹4 billion along with an offer for sale (OFS) of up to 8.53 million shares by its existing promoters and shareholders. The promoter of the company, Rajendra Mutha, holds a stake of 29.53 per cent.
Furthermore, regarding investor portions, the IPO has come up with a 75 per cent reservation for qualified institutional buyers (QIBs) while the non-institutional investors (NIIs) as well as the retail investors have a reservation and allocation of 15 and 10 per cents respectively. A reservation of ₹200 million worth of shares is included for employees who will be receiving a ₹93 per share discount to the final issue price.
The company has a target of using public issue’s proceeds to operate the cost of developing new diagnostic centres in the states of Punjab, Karnataka, Himachal Pradesh and Maharashtra.
However, a certain portion of the fund will be directly used for the full or partial repayment and pre-payment of Krsnaa’s borrowings. A part will also go towards remaining general corporate expenses.