Krsnaa Diagnostics IPO: Shares trading at Rs 370-400 in grey market

The Krsnaa Diagnostics offers a range of technology-enabled diagnostic services and is also one of the largest differentiated diagnostic service providers in India.

On August 5, in a subscription data published by exchanges, it was shown that Krsnaa Diagnostics initial public offering (IPO) had been subscribed 2.38 times and had received bids for 1.69 crore equity shares against an offer size of 71.12 lakh shares.

The retail investors had put in bids 11.75 times of their reserved portion whereas their employees had a hid worth 24 per cent of their portion.

The qualified institutional buyers’ portion has been subscribed 48 per cent and of Non-institutional investors were 20 per cent.

As shown in the IPP Watch and IPO Central data had shown, in the grey market, the Krsnaa Diagnostic Shares were traded at a premium of Rs 370 to Rs 400, which translates to a trading premium of 38.8 to 41.9 per cent over the higher end of the price band of Rs 933 to Rs 954.

The grey market was an unofficial trading platform in which the shares got traded well before the allotment in the IPO and listed on bourses.

The Krsnaa Diagnostics offers a range of technology-enabled diagnostic services and is also one of the largest differentiated diagnostic service providers in India.

The company has planned to raise Rs 1,213.33 crore through the public issues which would be comprised of a fresh issue of Rs 400 crore and an offer for the sale of Rs 813.33 crore by selling shareholders.

Hem Securities said that they would like the unique and scaled business model of the company, they mentioned that the company with its strong brand equity had an extensive footprint across India with the robust infrastructure, and with the robust revenue visibility, their company was well-positioned to capitalise on healthcare into spending across the public and private sectors. Hem Securities had recommended a subscription on the issue both for listing gains and long term perspective.

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