Vijaya Diagnostic Center Limited Intial Public Offering To Open On September 01, 2021

Press Release

• 26-08-2021

Mumbai:  Vijaya Diagnostic Centre Limited, the largest integrated diagnostic chain in southern India, by operating revenue as of fiscal year 2020 and one of the fastest-growing diagnostic chain by revenue for fiscal year 2020 (Source: CRISIL Report), proposes to open its Initial Public Offering on Wednesday, September 01, 2021.

The Price Band of the offer has been fixed at Rs. 522 to Rs. 531 per Equity Share. Bids can be made for a minimum of 28 Equity Shares and in multiple of 28 Equity Shares thereafter. The Offer will close on Friday, September 03, 2021.

The Initial Public Offering comprises of an offer for sale of up to 35,688,064 Equity Shares by the Selling Shareholders, comprising of up to 5,098,296 Equity Shares by Dr. S. Surendranath Reddy (“Promoter Selling Shareholder”), up to 29,487,290 Equity Shares by Karakoram Limited and up to 1,102,478 Equity Shares by Kedaara Capital Alternative Investment Fund- Kedaara Capital AIF 1 (“Karakoram Limited together with Kedaara Capital Alternative Investment Fund –Kedaara Capital AIF 1 referred to as “Investor Selling Shareholders”)

 The 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 and in compliance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company and the Selling Shareholders in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor 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. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to RIBs in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account (including UPI ID for RIBs using UPI Mechanism), in which the corresponding Bid Amounts will be blocked by the SCSBs or the Sponsor Bank, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process

The object of the offer are to (i) to carry out the Offer for Sale of up to 35,688,064 Equity Shares by the Selling Shareholders; and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges. Company will not receive any proceeds from the Offer and all such proceeds (net of any Offer related expenses to be borne by the Selling Shareholders) will go to the Selling Shareholders.

Company expects that listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to Shareholders and will also provide a public market for the Equity Shares in India.

ICICI Securities Limited, Edelweiss Financial Services Limited and Kotak Mahindra Capital Company 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.

Disclaimer:

Vijaya Diagnostic Centre Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Equity Shares and has filed the RHP with RoC. The RHP shall be available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges i.e. BSE and NSE at www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the BRLMs i.e. ICICI Securities Limited, Edelweiss Financial Services Limited and Kotak Mahindra Capital Company Limited at www.icicisecurities.com, www.edelweissfin.com and https://investmentbank.kotak.com, respectively. Bidders should note that investment in equity shares involves a high degree of risk and for details relating to the same, please see the section entitled “Risk Factors” on page 21 of the RHP. Potential Bidders should not rely on the DRHP filed with SEBI for making any investment decision.

The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (i) within the United States only to persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) under Section 4(a) of the U.S. Securities Act, and (ii) outside the United States in offshore transactions as defined in and in compliance with Regulations under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering of Equity Shares in the United States.

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