Vijaya Diagnostic, the diagnostic chain backed by private equity firm Kedaara Capital, has filed the draft red herring prospectus with the market regulator Sebi for its initial public offering (IPO). Vijaya Diagnostic is the second diagnostic chain to file for IPO this year, with Krsnaa Diagnostics having filed its papers in May.
The diagnostic chain’s public offer will be an offer for sale of 35,688,064 equity shares by the promoters, i.e. Dr S Surendranath Reddy and investors Karakoram, and Kedaara Capital Alternative Investment Fund, according to its draft red herring prospectus.
The promoters will collectively dilute a 35 per cent stake in the diagnostic chain, with Kedaara alone diluting as much as 30 per cent. Kedaara Capital had picked up a stake of 40 per cent in Vijaya in 2016.
Vijaya Diagnostic is one of the largest diagnostic chains in southern India, offering pathology and radiology testing services across 13 cities and towns in Telangana, Andhra Pradesh, Kolkata and the National Capital Region.
Vijaya Diagnostic’s listed peers include Dr Lal PathLabs, Thyrocare Technologies and Metropolis Healthcare.
ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital are the investment bankers for the IPO.