NEW DELHI: Pune-based diagnostics company Krsnaa Diagnostics has filed a draft red herring prospectus with market regulator Sebi to float an initial primary offering (IPO). The company may raise up to Rs 1,200 crore from the primary market.
According to the DRHP, the IPO comprises a fresh issue of shares worth Rs 400 crore and an offer of sale (OFS) of 9,416,377 equity shares of a face value of Rs 5 apiece by existing shareholders and promoters.
Phi Capital Trust’s Phi Capital Growth Fund-I (1,600,000 equity shares), Kitara PIIN 1104 (3,340,713 shares), Somerset Indus Healthcare Fund (4,454,284 equity ) and Lotus Management Solutions (21,380 shares) are key stakeholders participating in the OFS.
The company has reserved 75 per cent of the issue for qualified institutional buyers (QIB), up to 15 per cent for non-institutional investors and up to 10 per cent for retail investors, according to the DRHP. Shares worth Rs 200 crore are reserved for eligible employees.
The company has appointed JM Financial, DAM Capital Advisors, Equirus Capital and IIFL Securities as book running lead managers (BRLMs) for the issue. KFin Technologies is the registrar.
Shares will be listed on stock exchanges BSE and NSE.
Proceeds from the issue will be used for capital expenditure requirements worth Rs 150.8 crore. The company will establish diagnostics centres in Punjab, Karnataka, Himachal Pradesh and Maharashtra.
The remaining proceeds from the issue will be used for repayment and/or pre-payment in full or in part of certain borrowings worth Rs 125.7 crore and towards general corporate purposes.
For the financial year ended March 31, 2020, the company’s total income came in at Rs 271.38 crore as against Rs 214.31 crore for the previous year. Its net loss swelled to Rs 111.95 crore in FY2020 from Rs 58.05 crore in the previous year.
For the nine-month period ended December 31, 2020, the company posted a net profit of Rs 195.93 and revenue of Rs 562.7 crore amid a steep fall in expenses and higher revenue from operations due to the health crisis.