Krsnaa Diagnostics Limited, one of the largest differentiated diagnostic service providers in India, proposes to open its Initial Public Offering on Wednesday, August 4, 2021.

The Price Band of the Offer has been fixed at Rs 933 to Rs 954 per equity share. Bids can be made for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter. The Offer will close on Friday, August 6, 2021.

The Initial Public Offering comprises of a fresh issue aggregating up to Rs 4,000.00 million (Fresh Issue) and an offer for sale of up to 8,525,520 equity shares (Offered Shares), comprising up to 1,600,000 equity shares Phi Capital Trust-Phi Capital Growth Fund-I, (Selling Shareholder 1), up to 3,340,713 equity shares by Kitara PIIN 1104 (Selling Shareholder 2), up to 3,563,427 Equity Shares by Somerset Indus Healthcare Fund I Limited (Selling Shareholder 3) and up to 21,380 equity shares by Lotus Management Solutions (acting through Mayur Sirdesai) (Selling Shareholder 4). The offer includes a reservation aggregating up to Rs 200,00 million, for subscription by eligible employees (Employee Reservation Portion).

This Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (SCRR) read with Regulation 31 of the SEBI ICDR Regulations. This Offer is being made through the Book Building Process following Regulation 6(2) of the SEBI ICDR Regulations wherein, not less than 75 per cent of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs) (QIB Portion), provided that the Company in consultation with the BRLMs may allocate up to 60 per cent of the QIB Portion to Anchor Investors on a discretionary basis (Anchor Investor Portion), out of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, following the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion.

Further, 5 per cent of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75 per cent of the Net Offer cannot be allotted to QIBs, the Bid Amounts received by the Company shall be refunded.

Not more than 15 per cent of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10 per cent of the Net Offer shall be available for allocation to Retail Individual Bidders (RIBs) following the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, Equity Shares aggregating up to Rs 200,00 million will be available for allocation to Eligible Employees, subject to valid Bids being received at or above the Offer Price.

All Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (ASBA) process by providing details of their respective ASBA Account (as defined hereinafter), in which the corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks (SCSBs) or under the UPI Mechanism, as the case may be. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.

The Company proposes to utilise the net proceeds from the Fresh Issue (Net Proceeds) towards- Proposing to finance the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh, and Maharashtra; Repayment/pre-payment, in full or part, of borrowings from banks and other lenders availed by the Company; and General corporate purposes.

JM Financial Limited, DAM Capital Advisors Limited (Formerly IDFC Securities Limited), Equirus Capital Private Limited, and IIFL Securities Limited are the book running lead managers to the issue. The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on BSE and NSE.