Private equity investors of Krsnaa Diagnostics are set to harvest their investments as the healthcare chain has filed draft papers for an initial public offering (IPO).
VCCircle had reported in February that Krsnaa Diagnostics had roped in book-running lead managers to take the company public.
According to the draft papers, the float comprises of a fresh share issue up to Rs 400 crore and an offer for sale up to 9.41 million shares. As part of the offer for sale, Somerset is offloading 4.45 million shares, Kitara 3.34 million shares and Phi Capital 1.6 million shares. Lotus Management Solutions, acting through Somerset cofounder Mayur Sirdesai, is also offloading 21,380 shares.
Krsnaa Diagnostics had raised $7.8 million from Somerset and Kitara in 2015. Two years later, the investors put in around $2.25 million more. In 2019, the company raised Rs 80 crore ($11.3 million) in funding from new investor Phi Capital.
Incorporated in 2010, Krsnaa Diagnostics is promoted by Rajendra Mutha. The company offers imaging including radiology, pathology and tele-radiology services to public and private hospitals, medical colleges and community health centres across India.
It focuses on the public private partnership (PPP) model under which it has 1,781 diagnostic centres. It also collaborates with private healthcare providers to operate diagnostics centres within their facilities and was operating 20 such centres as of December 31, 2020.
Krsnaa Diagnostics had reported total income of Rs 562.7 crore in the nine months ended December 31, 2020 as compared with Rs 199.54 crore a year ago.
Net revenue from operations increased at a compound annual growth rate (CAGR) of 55.09% from Rs 107.5 crore in fiscal 2017-2018 to Rs 258.42 crore in financial year 2019-2020. Adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew from Rs 30.69 crore to Rs 75.77 crore during the period.
Once its IPO sails through, Krsnaa Diagnostics will join Dr Lal PathLabs, Thyrocare Technologies and Metropolis Healthcare on the bourses.