Krsnaa Diagnostics listing: Shares close at 4% premium over issue price

Diagnostic services provider Krsnaa Diagnostics failed to surprise the street on August 16 with its tepid listing gains. The sombre debut could have been due to selling pressure in midcaps and small caps over the last several sessions.

The stock settled with only a 3.85 percent premium at Rs 990.75 on the BSE and a 3.46 percent gain to close at Rs 987 on the National Stock Exchange. It listed with a 7.4 percent premium at Rs 1,025, much lower than analysts' expectations of around 30 percent premium listing.

Cumulatively, it traded with a volume of 87.39 lakh equity shares on the BSE and NSE.

The public offer of Krsnaa Diagnostics had seen a massive 64.4 times subscription given its healthy growth in financials, leadership in the public-private partnership (PPP) diagnostics market, and differentiated business model.

The company has mopped up Rs 1,213.33 crore through its public issue including a fresh issue of Rs 400 crore. The net proceeds from the fresh issue will be utilised for establishing diagnostics centres in Punjab, Karnataka, Himachal Pradesh and Maharashtra, and repaying of debts.

Krsnaa offers a wide range of diagnostic services such as imaging/radiology services (X-rays, MRI), routine clinical laboratory tests, pathology, and teleradiology services to private/public hospitals, medical colleges, and community health centres. The firm has an extensive network of diagnostic centres across India with a key focus on non-metro, and lower tier cities and towns.

It currently operates 1,823 diagnostic centres that are offering radiology and pathology services across 13 different cities in India. It also operates one of India’s largest teleradiology reporting hubs in Pune which can process large volumes of X-rays, CT scans and MRI scans round the clock, round the year.